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The Cost of Retiring in Every U.S. State: Where Does Pennsylvania Stand? 

  • Writer: Evan Johnson
    Evan Johnson
  • Jul 31
  • 3 min read

Updated: Oct 1

At Robert Ace Builders, right here in Tannersville, PA, we understand that a home is more than just a place to live, it’s where your next chapter begins. For many, that next chapter means retirement. Whether you're staying close to family or considering a big move, the cost of retiring varies greatly from state to state.


If you or a loved one are thinking about building a retirement home, knowing how each state stacks up in terms of affordability is a smart first step. Here’s a look at retirement costs across the country and why Pennsylvania might just be the perfect place to call home during your golden years.

How Retirement Costs are Measured 


To compare states, we look at key retirement affordability indicators, including:

  • Average annual spending for retirees 

  • Tax friendliness for seniors 

  • Healthcare costs 

  • Housing expenses 

  • Cost of living index 


The 5 most affordable States to Retire in: 

  1. Mississippi 

  2. Oklahoma 

  3. Arkansas

  4. Missouri

  5. Michigan 


The 5 most expensive states to retire in: 

  1. Hawaii

  2. California

  3. New York

  4. Massachusetts 

  5. Connecticut 


So, Where Does Pennsylvania Stand?


Pennsylvania comes in around the middle but it offers some serious advantages for retirees, especially here in the Pocono region:


  • Tax-Friendly for Retirees: PA doesn’t tax Social Security or most retirement income, including 401(k)s and IRAs.

  • Affordable Housing Options: From peaceful rural retreats to convenient suburban living, there’s something for every lifestyle and budget.

  • Close to Family and Quality Healthcare: Stay near major hospitals, care networks, and Northeast metro areas without the high costs.

  • Four-Season Beauty: Love crisp fall air, snowy winters, and colorful springs? You’ll find it all right here in the heart of the Poconos.


Whether you're downsizing or building your dream forever home, Pennsylvania, and specifically the Pocono region, offers a reliable and rewarding place to retire.


How Pennsylvania and the Poconos Compare to Other Retirement Destinations


When evaluating retirement locations, many people look to popular destinations like Florida, Arizona, or the Carolinas. But if you’re comparing more than just the weather, Pennsylvania, especially the Poconos, has some compelling advantages.

Average Cost of Retirement in Pennsylvania


  • Estimated Annual Retirement Spending: Around $55,000–$60,000, slightly below the national average of $60,000–$65,000.

  • Median Home Price (Statewide): Roughly $270,000, compared to the national median of $420,000 (as of 2025).

  • Healthcare Costs: Ranked among the top 15 states for affordable healthcare access for seniors.

  • Tax Burden: One of the few states that doesn’t tax retirement income or Social Security


Why the Poconos Stand Out


The Pocono Mountains region offers a rare combination of affordability, natural beauty, and access to essentials:


  • Lower Property Taxes than many parts of New Jersey, New York, or Eastern Pennsylvania suburbs.

  • Affordable Land & Custom Home Building: You can build new for less, especially compared to high-cost retirement hotspots.

  • Strong Healthcare Network: Proximity to major health systems in Stroudsburg, Allentown, and even NYC or Philly.

  • Less Congestion, More Nature: Enjoy lakes, hiking, and mountain views—without the traffic or high prices of other resort towns.


Retirement Ready Plans from Robert Ace Builders:


  • The Glenview: A single-story, open-concept plan with separated owner wing. Designed for comfort, accessibility, and practical living. 


  • The Summit: A cozy ranch-style home built for simplicity, affordability, and easy maintenance. Ideal for downsizers. 


  • The Chapple-SV:  A warm and inviting design with a first-floor Owner’s Suite and airy 2-story Living Room. Perfect for relaxed living, weekend guests, or peaceful retirement escapes.


  • The Caledonia: A flexible, easy-living layout with a main-level Owner’s Suite and upstairs guest space. Designed for comfort, privacy, and low-stress everyday living.


As your local Pocono home builder, we specialize in homes that grow with you, designed to make retirement feel secure, affordable, and fulfilling. 


Ready to build your ideal retirement home here in PA? We’re here to help! 


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