When it comes to retirement, choosing the right location is vital to ensuring you enjoy your golden years to the fullest. While some states offer fantastic retirement amenities and a high quality of life, others may not be as ideal for retirees. Here, we take a closer look at ten of the worst states to retire in the United States, starting with the state ranking at number ten on the list and working our way towards the least favorable state for retirees.
10. Maryland
Maryland, known for its beautiful coastlines and charming cities, may not be the best choice for retirees. The state has a relatively high cost of living, including healthcare costs that are above the national average. Additionally, the state’s tax burden on retirees can be significant, leading to a strain on fixed incomes.
9. Oregon
While Oregon boasts stunning natural landscapes and a thriving cultural scene, it falls short in terms of financial friendliness for retirees. The state has high income tax rates and does not exempt retirement income. Health care costs are also on the pricier side, making it less appealing for retirees on a budget.
8. Massachusetts
Massachusetts is a state steeped in history and offers a vibrant atmosphere for those seeking an active retirement. However, retirees may find the high cost of living in the state challenging, particularly due to elevated housing costs. Additionally, Massachusetts imposes income tax on most forms of retirement income, which can impact retirees’ financial well-being.
7. New Jersey
New Jersey may be known for its proximity to major cities and beautiful beaches, but it ranks poorly for retirees due to its high cost of living. Housing costs are particularly steep in many parts of the state, making it difficult for retirees to find affordable accommodation. High property taxes and income tax rates further compound the financial burden on retirees.
6. California
Despite its desirable climate and plethora of attractions, California’s high cost of living and sky-high home prices make it a challenging state for retirees. Health care costs are also above the national average, adding to the financial strain on retirees. Moreover, the state’s income tax rates can eat into retirees’ savings.
5. Rhode Island
Rhode Island may be the smallest state in the U.S., but it poses significant challenges for retirees. The state has high property taxes and income tax rates, making it harder for retirees to make their retirement savings last. Additionally, healthcare costs are above average, adding to the financial burden on retirees.
4. Connecticut
Connecticut offers picturesque New England charm, but its high cost of living and tax burden make it a difficult state for retirees. The state imposes income tax on various forms of retirement income, reducing retirees’ disposable income. High property taxes and healthcare costs further strain retirees’ budgets.
3. Illinois
With its bustling cities and scenic landscapes, Illinois may seem like an attractive place to retire. However, the state’s financial challenges make it one of the worst states for retirees. Illinois has high property taxes and income tax rates, limiting retirees’ purchasing power. Healthcare costs are also significant, adding to the overall expense of retirement in the state.
2. New York
New York’s vibrant culture and diverse attractions appeal to many, but its high cost of living and tax burden pose hurdles for retirees. The state has some of the highest property taxes in the country, along with elevated income tax rates. Healthcare costs in New York are also on the higher end, contributing to the overall financial strain on retirees.
1. Hawaii
Claiming the top spot as the worst state to retire in the U.S. is Hawaii. While the state offers stunning landscapes and a warm climate, it comes with a hefty price tag. Hawaii has the highest cost of living in the country, driven by expensive housing prices and high healthcare costs. Retirees in Hawaii also face high taxes, further squeezing their retirement budgets.
Choosing the right state for retirement involves considering a variety of factors, including cost of living, tax friendliness, and healthcare affordability. While these ten states may not be the most retirement-friendly, there are plenty of other states in the U.S. that offer attractive options for retirees seeking a fulfilling and financially sustainable retirement lifestyle.