While reaching retirement is a significant achievement, things aren’t always easy after you sign off from work for the last time. Many people in retirement find themselves struggling with their expenses. Furthermore, as per the personal finance website WalletHub, 228.8% of working adults have saved money for retirement and social security benefits, which account for roughly 2037 percent of the average worker’s earnings.
Stretching your money and getting the most value for your money is crucial for retirees and those getting ready to retire. Because where you live in retirement can have a significant impact on your spending, WalletHub has created a list of the best and worst places to retire in 2024. The team evaluated 50 states using 46 important “retirement-friendliness” metrics, including cost of living, general tax friendliness, weather mildness, and accessibility to leisure and medical services, in order to arrive at the rankings.
According to Wallethub analyst Cassandra Happe, “being retired brings freedom, but it’s also naturally a time of financial constraint, with many seniors living on a fixed income.” If you have the means, you should retire in a state with low retirement income taxes and low cost of living in order to maximize your retirement savings. You should also take into account things like how well the state’s healthcare system functions and how many activities you enjoy. ”.
Not surprisingly, Florida was ranked as the best state to retire to because of its low taxes. However, a number of Western states were included in the top 10—Colorado came in second, Wyoming came in fifth, Idaho came in sixth, and Montana came in ninth.
Colorado came in second place because, like the Orange State, it doesn’t have estate or inheritance taxes and has a temperate climate compared to hot Florida. It’s also a great state for physical and mental health, according to WalletHub, with some of the best geriatric hospitals in the nation, one of the lowest rates of social isolation for seniors, and a low percentage of residents over 65 living in poverty.
Ranking fifth: Wyoming is a very safe place for retirees; the state has one of the lowest rates of violent crime in the nation and better safeguards against elder abuse when compared to other nations. Its clean air, high rate of senior volunteerism, and lack of estate and inheritance taxes are further advantages.
But not all Western states had stellar rankings. Washington made it into the bottom 10 with a ranking of 43rd on the list due to its low scores for affordability, quality of life, and health care. Both the annual cost of in-home services and the rate of property crime are high. Still, it was among the top 5 states with the longest life expectancy, right up there with California and Hawaii.
Look below at the top ten states (in order of worst to best) to retire. You can see the full report here.
Making the decision to retire is a significant milestone in life, and choosing the right location to spend your golden years is equally important. While many factors influence this decision, understanding the potential downsides of certain states can help you make an informed choice. This guide will delve into the ten worst states to retire in 2023, highlighting the key factors that contribute to their low rankings.
The Bottom Ten: A Closer Look
1. Kentucky: Kentucky takes the unfortunate title of the worst state to retire in 2023. Its low ranking is primarily driven by its high poverty rate, limited access to quality healthcare, and relatively low life expectancy.
2. New Jersey: New Jersey’s high cost of living, particularly housing costs, makes it a challenging place for retirees on a fixed income. Additionally, the state’s heavy tax burden further strains retirees’ finances.
3. Mississippi: Mississippi’s low ranking is attributed to its high poverty rate, limited access to quality healthcare, and relatively low life expectancy. Additionally, the state’s high crime rate can be a concern for retirees seeking a safe and secure environment.
4. Rhode Island: Rhode Island’s high cost of living, particularly housing costs, makes it a challenging place for retirees on a fixed income. Additionally, the state’s limited access to quality healthcare and relatively low life expectancy contribute to its low ranking.
5. Oklahoma: Oklahoma’s high poverty rate, limited access to quality healthcare, and relatively low life expectancy are the primary factors contributing to its low ranking. Additionally, the state’s high crime rate can be a concern for retirees.
6. Louisiana: Louisiana’s high poverty rate, limited access to quality healthcare, and relatively low life expectancy are the primary factors contributing to its low ranking. Additionally, the state’s high crime rate and exposure to natural disasters can be a concern for retirees.
7. New York: New York’s high cost of living, particularly housing costs, makes it a challenging place for retirees on a fixed income. Additionally, the state’s heavy tax burden and limited access to quality healthcare contribute to its low ranking.
8. Washington: Washington’s high cost of living, particularly housing costs, makes it a challenging place for retirees on a fixed income. Additionally, the state’s limited access to quality healthcare and relatively low life expectancy contribute to its low ranking.
9. Arkansas: Arkansas’s high poverty rate, limited access to quality healthcare, and relatively low life expectancy are the primary factors contributing to its low ranking. Additionally, the state’s high crime rate can be a concern for retirees.
10. Illinois: Illinois’s high cost of living, particularly housing costs, makes it a challenging place for retirees on a fixed income. Additionally, the state’s heavy tax burden and limited access to quality healthcare contribute to its low ranking.
Key Factors to Consider
While the overall ranking provides a general overview, it’s crucial to consider the specific factors that influence your individual needs and preferences. Here are some key factors to consider when evaluating potential retirement destinations:
- Cost of living: This includes housing costs, taxes, and everyday expenses.
- Access to quality healthcare: This is especially important as healthcare needs tend to increase with age.
- Crime rate: This can be a concern for retirees seeking a safe and secure environment.
- Weather and climate: This can play a significant role in your quality of life, especially if you have health conditions or prefer certain activities.
- Tax burden: This includes state and local taxes, as well as property taxes.
- Access to amenities and activities: This can include cultural events, recreational opportunities, and shopping options.
- Community and social life: This can be important for maintaining an active and fulfilling lifestyle.
Making an Informed Decision
Choosing the right place to retire is a personal decision that requires careful consideration of your individual needs and preferences. By understanding the factors that contribute to the rankings of the worst states to retire in, you can make an informed decision that aligns with your goals and aspirations for this next chapter in your life.
Remember, the rankings provide a starting point for your research. It’s essential to conduct further research and visit potential locations to get a firsthand feel for the communities and lifestyles they offer.
10 Best States to Retire
- Florida
- Colorado
- Virginia
- Delaware
- Wyoming
- Idaho
- New Hampshire
- Minnesota
- Montana
- Pennsylvania
10 Worst States to Retire
- Kentucky
- New Jersey
- Mississippi
- Rhode Island
- Oklahoma
- Louisiana
- New York
- Washington
- Arkansas
- Illinois
The Absolute Worst States For Retirement in 2024.
FAQ
What is the #1 retirement state?
|
Overall Rank
|
State
|
Quality of Life Rank
|
|
1
|
Florida
|
1
|
|
2
|
Colorado
|
27
|
|
3
|
Virginia
|
13
|
|
4
|
Delaware
|
34
|
What is the hardest state to live in financially?
What is the cheapest and safest state to retire in?
What are the worst States to retire to in 2023?
Based on these criteria, here are the five worst states to retire to in 2023. 1. Alaska Alaska doesn’t have a state income tax, but that’s about the only thing it has going for it as a retirement destination.
Which states are the worst to retire to?
Louisiana, Kansas, West Virginia, Arkansas, and Mississippi ranked as the worst states to retire to based on the factors Americans care most about. These five states are among the most affordable in terms of housing and other cost-of-living categories. They also feature relatively warm temperatures. But they post very low scores in other areas.
Where are the worst places to retire?
Alaska tops our list of the worst places to retire. Should you consider these states? The worst states to retire in have high taxes and living costs, lack access to affordable healthcare, and rank poorly for other quality-of-life factors, like weather and crime.
Which state is the best to retire in?
Laguna Beach in California. Washington also ranked low on the list, despite its high-quality healthcare. Washington. Boston, Massachusetts. Iowa ranked as the best state to retire in thanks to its high affordability and lack of crime, while Florida didn’t even crack the top five.