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What specifically is the issue about retiring in a 'blue state'? If you mean cost of living, the OP might choose Needles CA or some place that is much less expensive than, say the Bay Area. Is there a tax you're referring to that is problematic (i.e. cap. gain tax on investment income in state) or just the hidden taxes (i.e. taxes on fuel etc)?

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Cost of living is much higher in blue states, unfortanetly. It's a outcome of higher regulation which customers end up paying for. Higher cost of living in terms of Shelter cost, Utilities and generally higher taxes.

CA generally has a heavy tax burden. There are other "blue states" with lower tax burdens but the original comment was right on... generally middle of the country is cheaper.

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