Worst States To Retire In 2023
When it comes time to retire, choosing the right or best state to settle down in can make all the difference. Some states offer a paradise of warm weather, affordable living, and plenty of activities for seniors to enjoy. However, other states might not be so retirement-friendly, with higher cost of living, limited healthcare options, and lackluster amenities.
If you’re wondering which of the 50 states (i.e. Hawaii, Alaska, Iowa, New York …) to avoid when it’s time to retire, look no further. This article breaks down what factors contribute to states that are considered the worst to retire in, as well as, a list of ten in 2023. You can decide if you want to cross any of them off your list. There are also a few tips that may help individuals stretch their retirement income and help them find the best state to retire in, when and if they choose to relocate.
What Factors Contribute In Making The Worst States To Retire In 2023
So, what makes a state a terrible choice for many Americans of retirement age? Now, we don’t want to bash any particular state too hard, but there are a few that seem to consistently rank at the bottom when it comes to retirement. These are the top five factors to consider, like living cost that are high, high taxes, expensive health care, harsh weather and even the lack of amenities. Let’s look at why some of these factors may influence the state you choose to retire in.
High Cost of Living
Alright, let’s talk about how the high living expenses can really put a damper on a retiree’s life. Retirement is supposed to be the time when you can kick back, relax, and enjoy the fruits of your labor. But if the cost of everything keeps going up, it can really throw a wrench in your plans.
First off, let’s talk about housing. Rent or mortgage payments are one of the biggest expenses for most people, and those in their golden age are no exception. With the living expenses being high, finding affordable housing can be a real challenge.
And what about everyday expenses? Groceries, transportation, utilities – they all seem to keep getting more expensive. And when you’re on a fixed income, it can be really tough to make ends meet.
High Taxes
Alright, let’s talk about how high taxes, whether they are sales, property, federal or state taxes, can affect the elderly. Now, we all know that taxes are a necessary evil, but when you’re on a fixed retirement income in your golden years, those taxes, can really cramp your style. So, how exactly do high taxes impact these individuals?
Well, the first big hit comes when you’re getting your retirement benefits. Whether it’s Social Security benefits, a pension, or distributions from your retirement accounts, Uncle Sam likes to take a chunk of it right off the top.
And if you’re lucky enough to have a healthy nest egg, you might even get hit with higher tax rates on your investment income.
But wait, there’s more! Let’s not forget about property taxes. If you’re still living in your own home, those property taxes can really pile up. And with home values skyrocketing in some areas, you could be shelling out a small fortune just to stay in your own house.
And let’s not even get started on sales tax. Every time you make a purchase, you’re coughing up a little more to the government. It might not seem like a big deal at first, but those extra few bucks here and there can really add up over time.
Expensive Health Care
As we get older, our medical needs tend to increase. So you want to make sure you’re in a state with top-notch healthcare facilities and access to quality medical professionals. Trust me, you don’t want to be stuck in a state where you have to travel miles just to see a decent doctor.
Another thing to consider is how expensive health care can really mess with your plans. You work hard your whole life, save up all that money, and finally retire thinking you’re gonna live the good life. But then the reality hits you – health care costs are through the roof!
I mean, seriously, have you seen how much it costs just to get a checkup these days? And don’t even get me started on prescription drugs. It’s like they’re charging you an arm and a leg just to stay healthy!
So what does this mean for you? Well, it means that you’re constantly worried about how you’re gonna pay for your medical expenses. You’ve got to budget for doctors’ visits, medication, and any unexpected health issues that might pop up. And let’s not forget about the cost of insurance premiums – those things can really eat into your retirement savings!
All this stress and worry about money can really take a toll on a persons health and overall well-being. You’re supposed to be enjoying these golden years, but instead you’re constantly fretting about how you’re gonna afford your next trip to the doctor.
And it’s not just the financial aspect that’s a problem – it’s also the quality of care. With expensive health care, retirees might be tempted to skip out on necessary treatments or skip doses of medication just to save a few bucks. That’s definitely not a good situation to be in.
So yeah, expensive health care definitely has a major impact on pensioners. It’s a constant source of stress, it eats up their retirement savings, and it can even lead to compromised care. It’s a tough pill to swallow, but it’s a reality that many retirees have to face.
Harsh Weather
Harsh weather can have a major impact on pensioners, both physically and mentally. For starters, extreme temperatures can be really tough for older folks to handle. Hot weather can lead to heat exhaustion and dehydration, while cold weather can make joints ache and increase the risk of falls. And let’s not forget about the dreaded winter storms that can leave retirees stuck inside for days on end. Talk about cabin fever!
But it’s not just the physical effects that harsh weather has on retirees. It can also take a toll on their mental health. Bad weather can make it difficult to get out and socialize, which can lead to feelings of isolation and loneliness. And for those retirees who rely on outdoor activities like gardening or walking for their mental well-being, being cooped up inside can really put a damper on things.
Other Concerns, Including Lack Of Amenities
A troubled pension system can really mess with a retiree’s life. I mean, think about it. You work your butt off for years, thinking you’re gonna have a nice little nest egg waiting for you when you finally kick back and enjoy retirement. But if that pension system is in trouble, it can throw a major wrench in your plans.
If the pension system is running out of money or is at risk of collapsing, it could mean that your retirement benefits are gonna take a hit. But it’s not just about the money. A troubled pension system can also mess with your peace of mind. If you’re constantly wondering if your pension is gonna dry up or if you’ll have to start living on a shoestring budget, it can really put a damper on things.
One last thing to think about is the availability of activities and amenities. After all, retirement is supposed to be fun, right? Make sure there are plenty of things to do, whether it’s golfing, fishing, hiking, or just hanging out at the local bingo hall. And of course, you’ll want to be near all the conveniences you need, like grocery stores, restaurants, and shops.
List Of The Worst State Ranks For Retirees
Now, here is a list of some of the worst states for retirement based on some of the factors listed above. Remember, this is just a starting point. It’s always a good idea to do your own research before packing up and heading to a new state.
1. New York: High cost of living, high taxes, and harsh weather make it difficult for retirees on a fixed income.
2. Illinois: High taxes, poor financial stability, and an unpredictable economic climate.
3. California: The high cost of living, expensive healthcare, and high taxes make it challenging for retirees to maintain a comfortable lifestyle.
4. New Jersey: High taxes, high living expenses and a troubled pension system.
5. Connecticut: High taxes, high living cost, and struggles with affordability.
6. Rhode Island: High living expenses, high taxes, and limited access to healthcare.
7. Massachusetts: High living cost, expensive housing, and high healthcare costs.
8. Oregon: High taxes, increased living expenses, and limited access to affordable housing.
9. Vermont: High living cost, cold climate, and limited healthcare options.
10. Maryland: High living expenses, high healthcare costs, and high taxes.
This list is not exhaustive and each state may have certain advantages or disadvantages depending on individual preferences and circumstances.
Take California, for example. Beautiful weather and stunning coastline aside, the cost of living is through the roof. So unless you’ve got a hefty nest egg saved up, you might find yourself struggling to make ends meet.
And let’s not forget about New York. The Big Apple might be great for young professionals, but for retirees, it can be a bit overwhelming.
It’s loud, crowded, and did we mention expensive? Unless you’re a millionaire, your retirement dreams might get crushed by the cost of living in the city that never sleeps.
Another state that tends to land on the worst retirement list is Illinois. Now, we’re not saying it’s all bad, but the high taxes can really put a damper on your retirement budget.
And if you’re looking for a relaxing atmosphere, you might want to look elsewhere. Illinois has been known to have its fair share of crime and traffic congestion, which isn’t exactly ideal for pensioners looking for some peace and quiet.
Tips To Help Address The Above Factors
For those pensioners who live in the U.S., it is important that they do community and economic research when trying to determine the best and worst states to live. They will be able to discover the list of best states, as well as, those states that are ranked last. Here are a few tips that address the above factors.
High Cost of Living
So what can retirees do? Well, one option is to downsize. Moving to a smaller, more affordable home price can help cut down on housing costs. Or look at the cost of living index for a state that has a lower cost of living.
High Taxes
High taxes can definitely put a damper on your retirement dreams. But hey, there are some things you can do to minimize the impact.
Talk to a financial advisor or tax professional who specializes in retirement planning. They can help you come up with strategies to legally reduce your tax burden so you can keep more of your hard-earned money.
At the end of the day, it’s all about being proactive and staying informed. So don’t let those pesky taxes ruin your retirement. Take charge of your financial future and make the most of your golden years!
Expensive Health Care
Another option is to look for ways to save money on healthcare, like switching to generic medications or finding low-cost clinics.
Harsh Weather
Combat the effects of harsh weather by staying prepared:
- Stock up on essential supplies like non-perishable food, water, and medication.
- It’s also a good idea to have a backup plan for staying active and engaged indoors. Maybe that means joining a local gym or community center that offers indoor activities, or finding a new hobby that you can enjoy from the comfort of your own home.
- Don’t be afraid to reach out for help if you need it. Whether it’s asking a neighbor to pick up groceries for you during a storm or reaching out to a friend or family member for some virtual company on a rainy day, don’t hesitate to lean on your support system when the weather gets tough.
What Is The Best State To Retire - Study Finds
Believe it or not – the best state in the U.S. to spend your golden years is Florida! The advantages for retirees are low cost of living, affordable housing, no state income tax, amazing weather, beaches, golf courses, tons of activities and vibrant retirement communities. The pull is there for those choosing to live in the U.S.
I, on the other hand, chose to step out of my comfort zone and join my family on a cultural adventure to Valencia, Spain. So far, it’s been one of the best life-changing decisions of my golden years.
Now that you know what factors to consider and a few tips, you can start researching and narrowing down your options on the best and worst states to retire in 2023. Just remember, finding the perfect retirement spot is all about finding a place to retire that suits your needs and makes you happy. Whether you are looking for less expensive states that offers affordable housing, great health care and low crime rates, or a place closer to family – take that leap … your retirement state is out there!
P.S. Here at Simplify Abroad we have got different articles and videos done by a family of 6 (and three dogs), a family of 3 (and one dog) and a recent retiree. If you want to see more articles from us click here.
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