1. New Jersey

Average annual benefit: $19,402

According to the Social Security Administration, New Jersey is where retired workers collect the highest average payments.  The Garden State’s 1,181,229 retirees collected average monthly benefits of $1,616.80.

Flickr.com/KristenSocial Security is not taxable. Most of the state pays 6.6% sales tax, but most footwear and clothing are exempt. Property taxes are the highest in the U.S.; therefore, New Jersey is only moderately retirement-friendly.