Transitioning out of a life in the military is hard enough; choosing a place to live just adds more stress to the mix of decisions that must be made before getting out. Choosing where you live can be a game changer when it comes to job opportunities and career trajectory. But it can also impact your personal life. Fortunately, many resources are readily available to support the decision process.
Location Factors
Recently the personal finance website WalletHub used a weighted methodology to create a list of the best states for veterans to retire is based on what’s important to veterans.
1. Economic Environment
Whether they tax military pensions, their overall tax friendliness, a comparison of job opportunities for veterans in 2023 vs. 2022, and job growth
2. Quality of Life
The number of VA Benefits-Administration facilities per number of veterans, the number of homeless veterans, and the quality of the public university system
3. Health care
The number of VA health facilities per number of veterans, the quality of VA hospitals, the physicians and mental health counselors per capita
Top 3 States for Military Retirees
Here are the top three states, based on the key location factors.
1. South Carolina
- Overall Rank: 63.82
- Economic Environment: 5
- Quality of Life: 3
- Health Care: 9
With the highest score of all the states, South Carolina ranked number one overall because it is considered the most veteran-friendly in the three categories measured. For example, South Carolina does not tax military pensions meaning you get to keep more of your monthly pension at payday. In South Carolina, veterans who want to use their GI Bill to further their education can get college credits for military service, thus making the GI Bill entitlements stretch further with less out-of-pocket costs. If you transferred Post 9/11 GI Bill entitlement to your spouse or children while still serving, it would reduce their college costs also.
For honorably discharged veterans looking to work for the State of South Carolina, they get preferential hiring when looking for a state job – adding to why they are also rated as the state with the sixth-best growth rate in the nation. With a ranking of seventh per capita in veteran population and fourth in veteran-owned businesses, South Carolina offers good social and business opportunities too.
When it comes to healthcare, South Carolina ranks fourth in having the best VA hospitals and third in most hospitals overall, making it one of the top states for veterans and their families to live a healthier life post-military.
2. Florida
- Overall Rank: 59.80
- Economic Environment:11
- Quality of Life: 4
- Health Care: 18
This state ranked second overall due in part to its high quality of life rating. Being a state where many retirees go to retire – of which 1.5 million are military veterans, the sheer number of veterans retiring there means they, like many retirees, find it a great place to live after military service.
As far as healthcare, Florida has a large number of VA health facilities with seven medical centers, 50 outpatient clinics, and more than two dozen Veterans Centers for counseling … in addition to having one of the largest number of VA Benefits Administration facilities per capita.
For veterans who want to use their GI Bill entitlement after getting out, this state ranks fifth as having the best colleges and universities in the country, and it gives college credit for military service meaning it not only minimizes out-of-pocket costs but also gets one through college quicker and out into the working world. As far as an annual job growth rating, it is ranked fourth out of the 50 states and the District of Columbia. Florida also gives employers the option to give preference to veterans when hiring.
3. Virginia
- Overall Rank: 59.36
- Economic Environment:10
- Quality of Life: 5
- Health Care: 19
Virginia is another great place for military veterans to retire as evidenced by 8% of its population being military retirees – the third highest in the nation. It also boasts the second-highest veteran-owned business population at 8%. For veterans wanting to contract with the Department of Defense (DOD) after getting out, either as a prime contractor or sub-contractor, Virginia has the third highest number of funding contracts with the DOD per capita.
The Old Dominion State has 26 benefit service centers as part of its Virginia Department of Veterans Services that offer free services, along with information and education on federal, state, and local programs of interest and benefit to veterans.
This state also has its own Virginia Transition Assistance Program that helps transitioning service members and their spouses find employment, education, or entrepreneurship opportunities within the state. If working for the state of Virginia is in your sights, they offer a veteran’s preference of 5% on test scores; and 10% to disabled veterans.
In the state of Virginia, veterans and surviving spouses can claim up to $30,000 in tax-free military retirement pay in 2024; that number increases to $40,000 in 2025.
States to Consider for Retirement
If you’re curious about some of the other front runners, here’s the top 10 locations, in order.
- South Carolina
- Florida
- Virginia
- Maryland
- North Dakota
- Minnesota
- Alaska
- Connecticut
- New Hampshire
- South Dakota
Next time, we will look at the 10 worst states and why they rank the way they do.
