As we reach retirement age, many plan to move to that dream state in which we pictured ourselves growing old, but here are the top 25 states away from which retirees are staying. It’s important to consult various sources when considering retirement.
25. New Hampshire
Population: 1.356 million as of 2018, says U.S. Census Bureau
Known as the “Granite State,” New Hampshire’s cost of living isn’t the most affordable — U.S. News ranks it number 36 out of 50 on its affordability rankings. Other than that, it might be an OK place for retirees to live out the Golden Years fairly fiscally sound.
Housing is more affordable — New Hampshire ranks in at number 21. Its tax friendliness also helps out. We know that this is the “worst states to retire in” list, but the state’s cost of living still gives it a place on our list.
24. South Dakota
Population: 882,235 as of 2018, says U.S. Census Bureau
The home of Mount Rushmore is affordable in terms of cost of living and housing — US News ranks it number 29 and 10, respectively. It’s tax-friendly to retirees, according to Kiplinger. The publication actually rated it its number one state for retirees, but we will respectfully disagree.
If you’re looking for a state with lots to do (outside of nature) South Dakota doesn’t have a lot of options. According to documents from NOAA, South Dakota is in the path of cyclones and anticyclones, has extreme summer heat and very cold winter.
23. Utah
Population: 3.161 million as of 2018, says U.S. Census Bureau
The birthplace of the Mormon religion, Utah is expensive for housing. U.S. News lists it at 44 on its affordability ranking. Cost of living is feasible, however, with the publication ranking it 24th in that category. The taxes will get you, though…
It’s one of the least tax-friendly states, says Kiplinger. If you can withstand the taxes and housing costs, you can enjoy the quality healthcare available for seniors. United Health Foundation once ranked the Beehive State highly for this.
22. Virginia
Population: 8.518 million as of 2018, says U.S. Census Bureau
Virginia is not the most affordable state but better than some like California and Hawaii (most states are better than those come to think of it). It’s ranked 32 for cost of living affordability and 35 for housing, according to U.S. News.
Other than that, Virginia has a lot to offer. It’s tax-friendly, has cool cities like Richmond and higher than the U.S. average incomes. Kiplinger says that the average annual income for 65+ folks is $59,869. Not too shabby, Virginia!
21. Hawaii
Population: 1.42 million as of 2018, says U.S. Census Bureau
Hawaii is a gorgeous island, there’s no doubt about it! Tropical plants, animals, beautiful beaches, and breathtaking views make it perfect for living out the Golden Years. Sunshine is abound most of the year — its capital, Honolulu, experiences sunshine about 71 percent of the year.
However, there’s a little thing called the “Sunshine Tax.” An ironic term describing high costs of living in paradise-like states. In Hawaii, it’s 87 percent above average, says Kiplinger. Despite this, it’s pretty tax-friendly and the average income for 65+ is above $70,000.
20. Washington
Population: 7.536 million as of 2018, says U.S. Census Bureau
Washington is a perfect place to be if you’re nature lover — there’s so many lush forests, tall mountains and placid lakes to feast your eyes upon. Nature helps many seniors stay in shape! It’s also pretty tax-friendly, according to Kiplinger.
Its cost of living is pretty high, however, with US News ranking it number 37 out of the 50 states. Housing is even less affordable — US News ranked Washington state at number 46. With its rapidly rising population, housing might get even more expensive.
19. Maryland
Population: 6.043 million as of 2018, says U.S. Census Bureau
Maryland isn’t cheap when it comes to cost of living — U.S. News ranked it number 46 of its affordability rankings. Be prepared to shell out a lot for taxes — Kiplinger says Maryland is one of the “least tax-friendly” states in the nation.
Maryland doesn’t tax Social Security but that doesn’t help much. It fared better in terms of housing affordability, clocking in at number 25 on U.S. News’ list. Albeit not the paradise that California is, Maryland’s weather is mild enough for retirees.
18. Illinois
Population: 12.74 million as of 2018, says U.S. Census Bureau
If you move to Chicago, you’ll quickly find out why they call it “the Windy City!” The state often experiences icy cold winters with freezing winds. If you can withstand the chilly winters, you can save money living in this state.
Cost of living and housing are affordable, says US News, but its tax situation is voted as “mixed” by Kiplinger. The publication also cites Illinois’ downgrading fiscal soundness and its poor credit rating. Because of this, tax breaks for retirees are hardly assured.
17. New Mexico
Population: 2.095 million as of 2018, says U.S. Census Bureau
Fans of Breaking Bad or Better Call Saul might love to settle down in this state. You’ll be glad to know it’s fairly affordable in terms of cost of living. However, U.S. News ranked it 34 for housing, and business publication Kiplinger gives New Mexico a “least tax-friendly” rating.
The publication also notes the state’s high poverty rate for seniors. New Mexico State University says the state has a mild, arid continental climate with lots of sunshine and little rain. There’ll be an onslaught of taxes but at least it’s sunny out!
16. Nebraska
Population: 1.929 million as of 2018, says U.S. Census Bureau
This state has a low cost of living which is a plus (about 12 percent below the U.S. average, says Kiplinger). However, it earned itself a “least tax-friendly” score from the business journal. Most retirement income is taxable but social security is exempt for single filers making less than $43,000.
Nebraska isn’t very diverse — about 88.6 percent white, 5.1 percent black, 2.6 percent Asian descent and 11 percent Hispanic, says the 2018 U.S. Census. Families’ average income is slightly lower than the national average. You can expect some fairly mild temperatures — ranges from 40 to 62 Fahrenheit in Omaha.
15. New Jersey
Population: 8.909 million as of 2018, says U.S. Census Bureau
For housing costs, New Jersey ranks number 23 on US News’ Affordability Ranking — which isn’t bad! However, the Garden State is number 41 in terms of cost of living affordability. It’s got a mixed tax-friendly rating from Kiplinger
Social Security isn’t taxed, for instance, but there are sky-high property taxes. The weather isn’t extreme but it can get cold and snowy during the winter. Snow falls from October or November ’til about April, says Rutgers University.
14. Colorado
Population: 5.696 million as of 2018, says U.S. Census Bureau
When considering Colorado as a place to settle down, be wary of altitude sickness and what it can do to your well being. The average elevation in Colorado is 6,800 feet above sea level, according to various reports.
Depending on if you have prior medical conditions, it might impact you harder than you expect. Colorado’s beautiful which comes with — you guessed it — high costs. U.S. News ranked it 34 for cost of living and 48 for housing affordability.
13. Oregon
Population: 4.191 million as of 2018, says U.S. Census Bureau
Like Washington, Oregon is beautiful with lots of nature to explore but is also quite expensive in terms of cost of living and housing. U.S. News ranked the Pacific Northwest state number 45 for cost of living and 47 for housing affordability.
Also, be prepared to get taxed! Oregon isn’t tax-friendly, says Kiplinger. Its neighbor to the north, Washington state, has been growing in population more rapidly. As of 2018, Washington is 7.536 million while Oregon is nearly half of that.
12. Alaska
Population: 737,438 as of 2018, says U.S. Census Bureau
With its small population, Alaska might feel remote to some. However, most can agree that its tall snow-capped mountains and ocean views are breathtakingly beautiful. You’d expect Alaska’s remoteness might make it more affordable. In fact, it’s the exact opposite! You’ll need more savings to retire here comfortably.
U.S. News ranked the Last Frontier 44 for cost of living affordability and number 36 for housing. If you can brave freezing cold winters and its rough terrain, you can enjoy the state’s tax friendliness.
11. Missouri
Population: 6.126 million as of 2018, says U.S. Census Bureau
Missouri has pretty affordable lifestyle costs, ranking number four on US News’ Affordability Rankings for cost of living and number 11 for housing affordability. There are several trade-offs that seniors should consider before settling in the “Show Me” State, however.
Income levels are low, healthcare isn’t great for seniors and Missouri’s tax situation for seniors is mixed, says Kiplinger. However, those with lower income levels might benefit from Missouri’s low costs of living and housing costs. For the most part, the weather isn’t too shabby.
10. Rhode Island
Population: 1.057 million as of 2018, says U.S. Census Bureau
If you’re a low income senior without substantial savings, the state of Rhode Island is probably not the best place for you to live comfortably. It’s a very tiny state but that doesn’t mean it has tiny costs, unfortunately!
US News ranks this tiny state number 41 when it comes to affordable costs of living — not so good! It’s number 29 for housing costs, which is a little high. Healthcare is pretty expensive as well. Kiplinger says it’s not tax-friendly but the tax situation is improving for seniors.
9. Nevada
Population: 3.034 million as of 2018, says U.S. Census Bureau
Weather in Nevada can be tough. The arid state of Nevada doesn’t get that much rainfall — Current Results says it’s the driest state in the U.S. Summers in areas like Las Vegas can reach scorching temperatures of 100 degrees Fahrenheit or more.
Beyond the extreme desert climate, Nevada isn’t the cheapest for living. Its cost of living ranks 38 in US News’ Affordability Rankings and 45 in housing affordability. The upside? Some states’ affordability is worse and Nevada is fairly tax-friendly.
8. Minnesota
Population: 5.611 million as of 2018, says U.S. Census Bureau
If you hate shoveling snow, you probably won’t like Minnesota. The state’s winter low is 7 degrees Fahrenheit (brrr!) and it has about 198 sunny days on average, says Sperling’s Best Places. (The U.S. average is 205 sunny days, the publication says.)
As for cost of living, U.S. News ranks the Land of 10,000 Lakes number 31 in its affordability rankings. For housing affordability, it ranks 17 which is better but its heavy taxes for retirees might get to you.
7. West Virginia
Population: 1.806 million as of 2018, says U.S. Census Bureau
Its low costs of living make West Virginia seem appealing at first. However, this isn’t a tax-friendly state for retirees — Social Security and other retirement income is taxed the same as on your federal form, says Kiplinger. The first $8,000 is exempt though.
Besides little for “city folk” to do for entertainment, West Virginia has poor fiscal health and poor healthcare for seniors. Income for seniors is fairly low, but with the low cost of living, that shouldn’t impact you very much during retirement.
6. Connecticut
Population: 3.573 million as of 2018, says U.S. Census Bureau
This New England state made Kiplinger’s 10 least tax-friendly states for retirees. Its expensive cost of living doesn’t help either — US News ranked it number 47 for affordability in its “Affordability Rankings.” It’s number 24 in housing affordability, however.
Weather-wise, a year in Connecticut is comprised of 56 percent sunny days, says Current Results. Don’t like snow? Take heed, you’ll have to deal with frigid East Coast winters if you live in the New England Area.
5. New York
Population: 19.54 million as of 2018, says U.S. Census Bureau
It’s a good place for retirees as most of what you need is within walking distance (depending on your neighborhood) and delivery is king! Plus, there’s plenty to do while living out your glorious Golden Years, like enjoying Broadway plays and fine dining.
But…New York is home to brutal winters with blizzards that shut down the city for days. Cost of living is high (22 percent above the U.S. average) and it isn’t known for being tax-friendly to retirees.
4. California
Population: 39.56 million as of 2018, says U.S. Census Bureau
Yikes — California ranks number 49 in BOTH cost of living and housing affordability in US News’ Affordability Rankings. The only state that costs more than California is Hawaii. You can chalk up that high cost of living to the “sunshine tax.”
In fact, nearly 20 percent of California’s population lives in poverty says the Public Policy Institute of California. It doesn’t help that seniors in the Golden State can’t escape taxes. Except for Social Security benefits, retirement income isn’t exempt from taxes in California.
3. Vermont
Population: 626,299 as of 2018, says U.S. Census Bureau
Where Senator Bernie Sanders calls home doesn’t rank high for affordability. US News ranks the green state number 40 for cost of living and number 32 for housing costs. It also earned itself a “least tax-friendly” label from business publication Kiplinger.
Not into shoveling snow? Vermont can get up to 120 inches in the southern Green Mountains with an average winter temperature of 22 degrees Fahrenheit. With the possible icy ground everywhere you step, a broken bone is, unfortunately, a high possibility!
2. Massachusetts
Population: 6.902 million as of 2018, says U.S. Census Bureau
Expect your hard earned dollar not to go far here — Massachusetts is one of the pricier states to live in. It ranks number 43 in cost of living affordability and number 41 in housing costs, says US News. Expect high healthcare costs as well.
Kiplinger gives the East Coast state a rating of “not tax-friendly.” Although Social Security is exempt, most other retirement incomes still get taxed. If you don’t like harsh winters either, Massachusetts really might not be for you.
1. Delaware
Population: 967,171 as of 2018, says U.S. Census Bureau
Joe Biden’s state is tax-friendly, but might not be affordable for some retirees. It ranks 35 for cost of living and 31 for housing affordability in U.S. News’ affordability ranking. Kiplinger says that income levels are low as well.
It reports average incomes for 65+ individuals as $52,387 annually. You’ll get your typical East Coast winters in the First State. The minimum temperature extreme has been -17 degrees Fahrenheit, says the Office of the Delaware State Climatologist. If you simply can’t stand any sort of cold weather whatsoever, you might want to stay far, far away from most of the New England and Midwest states!
– Courtesy Finance101