Retiring in Hawaii: Making the Aloha State Home in 2023

Is Hawaii a good place to retire? Absolutely! Who wouldn’t want to spend their golden years on a tropical island in paradise? From providing a pleasant climate with breathtaking views to a variety of great healthcare services and cultural activities, the unmistakably beautiful “Aloha State” of Hawaii is a dream location for putting down roots. Here’s what we think you should know before going from tourist to resident and officially retiring in Hawaii.

What are the benefits of retiring in Hawaii?

The state of Hawaii offers the perfect getaway from the ordinary hustle and bustle of life, with beautiful landscape views of coastal areas, rainforests, and mountains. Sounds like a pretty great atmosphere to enjoy your golden years, right? 

Another main benefit for retirees moving to Hawaii is that social security retirement benefits and public pensions are not taxed. This will allow you to keep some extra money to the side! Because Hawaii draws in so many retirees each year, beautiful and active senior living communities can be found all across the state.

Retiring in Hawaii – FAQs

Q: How much do you need to retire in Hawaii?
A: That number depends on your specific lifestyle, of course, but generally speaking, to live comfortably in Hawaii, you would need at least $80,000 to $100,000 for a single person and around $125,000 to $150,000 for a family per year, according to Ben Waterman, co-founder and COO of Strabo, a global consumer portfolio tracking platform.

Q: Is it a good idea to retire to Hawaii?
A: With beautiful views, so many fun things to do, friendly people, lots of retirement communities, and more, Hawaii is a great place to call home in your golden years!

Q: Can you live in Hawaii on Social Security?
A: Knowing how to retire in Hawaii means knowing how to meticulously manage your post-retirement funds. With careful budgeting and a few compromises when it comes to housing and location, it may be possible to live in Hawaii off of Social Security alone. 

Q: Can you live in Hawaii with $3,000 a month?
A: That depends on several factors, such as your individual lifestyle, specific living expenses, location, and whether or not you’re retiring in Hawaii on a budget. Generally speaking, though, $3,000 a month may be a tight squeeze. For example, according to MIT’s Living Wage Calculator, it would not be possible for an individual without children to live in Honolulu County on $3,000 a month, taking into consideration typical living expenses.

Q: Do retirees pay income tax in Hawaii?
A: Hawaii is moderately tax friendly toward retirees, as it does not tax income from Social Security or public pensions. However, the state does tax income from retirement savings accounts and private pensions. 

Retiring in Hawaii – Pros and Cons

Hawaii is the only state in the U.S. made up of islands, and the major ones consist of the Island of Hawai’i (Big Island), Kauai, Oahu, and Maui. Each of these islands have their own special qualities, along with their own drawbacks. Most people are drawn to Hawaii’s islands because of their ideal warm temperatures year round and picturesque landscapes, yet there is so much more to these places than meets the eye. Take a look at both the major pros and cons you can expect to experience when retiring in Hawaii. 

Pro: Top-Tier Healthcare Facilities

Quality healthcare is very important for retirees, and in Hawaii, there are a variety of medical facilities and services that are dedicated to providing the best possible care. Some of these facilities include The Queen's Health System and the Maui Memorial Medical Center, both with many primary care physicians who are highly trained in caring for elderly patients, in particular.

Con: Island Fever

For mainlanders looking to move to and retire in Hawaii, you may find yourself in another part of the world, behind the wheel of a large automobile, with a beautiful house, and a beautiful wife. And, you may ask yourself, “Well, how did I get here?”

Forgive the Talking Heads reference, but we feel it’s apt. Mainlanders retiring in Hawaii may experience what locals call “island fever,” or “rock fever.” This is basically homesickness turned up to 11. Hawaii is a gorgeous place, but it is very isolated from the rest of the world. Most of your everyday needs (groceries, gas) need to be shipped in from overseas, which drives up prices, and the brands you trust most may not be available. It also means that to get away, you’re a good five-hour flight away from Los Angeles and the rest of the continental U.S.

It can get lonely. You can feel anxious and claustrophobic. And it often leads to mainlanders spending only a year or two on-island before moving back to more familiar soil. The fix? Know what you’re getting into beforehand. If you have the flexibility, try an extended vacation or renting a place for a year on-island to see how you fare before committing long-term.

Pro: Natural Beauty and Warm Weather Year Round 

The diverse landscapes of Hawaii — such as the magnificent volcanoes, vast rainforests, and crystal-clear beaches — provide retirees with a captivating view of their surroundings. The state's numerous outdoor recreation opportunities, including swimming, biking, and golf, also make it an ideal choice for people looking to get active and experience a stress-free retirement. And to top it off? The warm climate of Hawaii's islands consists of year-round temperatures ranging from 75 degrees Fahrenheit to 85 degrees Fahrenheit.

Con: Extreme Weather Events

While Hawaii is best associated with its beautiful weather, there are threats of extreme weather due to the state’s geographic location in the ocean. The hurricane season usually runs from June 1 to November 30, so it's always important to be prepared and replenish your emergency supplies when needed.

And did we mention volcanoes? The most active volcano in Hawaii is Kilauea, where the gasses and particulate matter of the vents release VOG (volcanic smog) into the air. If you're planning on moving to the Aloha State, it's important to check out the USGS flow hazard zones map to find out which areas may be affected most. 

Pro: Senior-Friendly Communities

The state of Hawaii places great importance on its senior-friendly communities, which helps provide that sense of support and community to retirees. There are also numerous home care agencies in the state that can help patients with their daily needs and medication management, so they still have a sense of independence. 

Con: Limited Public Transportation

Although Honolulu does have a good public transportation system, there are only a few big cities outside of the capital, which makes public transportation in the state very limited overall. The islands of Maui, Oahu, and Kauai have their own bus system, but you will probably still need a car to truly be able to travel and explore. 

The Best Places to Retire in Hawaii

No matter which of the islands in the Aloha State you end up on, there is something for everyone in each city, town, or neighborhood. From beautiful views to vibrant downtown areas to local activities and more, here are some of the best places to spend your golden years in Hawaii. Grab your Mai Thais and peruse the best towns to retire in Hawaii.

1. Wailea, Maui

• Average rent (one-bedroom): N/A
• Median home sale price: $1,630,000
• Great for: Beautiful and unique views of Pacific Ocean, nature lovers, hiking trails

According to Niche, Wailea is currently the best place to retire in Hawaii, with good reason. This area is known for its beautiful beaches and natural beauty, and it also has some of the best views of the Pacific Ocean.

There are plenty of things to do in this area, whether you want to explore the local culture or enjoy the sun. There are lots of hiking trails that are ideal for nature lovers, as well, such as the Wailea Beach Path, the Wailea Oceanfront Boardwalk Trail, and the Pu’u Olai.