When we reach retirement age, a lot of us plan to move to that dream state we always pictured ourselves growing old in. Some of us move for lower costs of living, better healthcare, and friendlier tax laws, and others move for better weather and family.
We ranked 50 states from the highest cost of living to the lowest, with data on tax breaks, annual income, and healthcare costs. These were taken from Kiplinger, Milken Institute, National Association of Realtors, Bureau of Labor Statistics and more.
Remember, it’s important to consult various sources when considering retirement. Take our list with a grain of salt as it’s written for entertainment purposes only.
Here’s the ranking, from worst to best, starting this article with #50 and continuing to #41. Check back for the continuing countdown to find the most affordable states in which to retire, courtesy of Finance101.
50. Hawaii
Cost of living: 87 percent above U.S. average
Population: 1.4 million
Best city: Maunawili
PRO: The best community for retirees in this tropical state is Maunawili on the island of Oʻahu, says Niche.com. It’s home to popular hiking destinations and close to the state capital, Honolulu. Hawaii, in general, is full of nature and water sports.
CON: The cost of living is pretty high in Hawaii — 87 percent above average. That’s even higher than the other sunshine state, California. The average income for 65 plus individuals is over $71K, says Kiplinger. Few in its population meet U.S. poverty guidelines.
49. California
Cost of living: 52 percent above the U.S. average
Population: 39.56 million (as of 2018, U.S. Census Bureau)
Best city: Beverly Hills, says Yahoo! Finance (if you can afford it!)
PRO: It’s hard to argue against California’s natural beauty. The state has forests, beaches, deserts, and more. It’s home to big cities for those craving fast-paced living.
CON: This state has the second highest costs of living after Hawaii. If you want sunny weather, you’ll have to pay up! Some are and it’s costing them — 19 percent of California’s population lives in poverty, says the U.S. Census Bureau.
48. Massachusetts
Cost of living: 38 percent above the U.S. average
Population: 6.902 million (as of 2018, U.S. Census Bureau)
Best city: Northampton, says Forbes
PRO: This is a state with a lot of history — the Boston Tea Party, one of the 13 original colonies, the landing place of the Mayflower, and more.
CON: Massachusetts, also known as the Bay State, has lots of costs for retirees, says Kiplinger. There are high living costs at 38 percent above the U.S. average, high healthcare costs and it isn’t tax-friendly. If you hate the cold, East Coast winters aren’t for you.
47. Alaska
Cost of living: 32 percent above U.S. average
Population: 737,438 (as of 2018, U.S. Census Bureau)
Best city: Anchorage, says Yahoo! Finance
PRO: Kiplinger says the Last Frontier is extremely tax-friendly to retirees, but apparently not many take advantage of this. Alaska has a small population of seniors.
CON: Its costs of living are pretty high there — 32 percent above the U.S. national average, says Kiplinger. Health care costs are important for seniors and those are above the national average as well in Alaska. Also if you’re looking for big city living, Alaska isn’t your state!
46. New Jersey
Cost of living: 27 percent above U.S. average
Population: 8.909 million (as of 2018, says U.S. Census Bureau)
Best city: Long Beach Township, Ocean County says NJ.com
PRO: It’s a state with plenty to do and see during your Golden Years. Walk the boardwalk and check out the ocean views in Ocean City or take a quick train ride into New York City. The Garden State has lots of history as well for those history buffs or the history-curious!
CON: Compared with places like Montana and South Dakota, New Jersey has a much higher cost of living. Medical care is pricey and so are property taxes, says Kiplinger. This isn’t a great option for low-income retirees or those looking to save money.
45. Connecticut
Cost of living: 24 percent above the U.S. average
Population: 3.573 million (as of 2018, U.S. Census Bureau)
Best city: Darien, says AreaVibes.com
PRO: Income for seniors is some of the highest in the U.S., Kiplinger says. Even with the high cost of living, retirees may be able to afford it if they pick up a retirement job.
CON: It’s not very tax-friendly to retirees with real estate taxes some of the worst in the nation, says Kiplinger. Most retirement income is fully taxed and apparently, some residents may face taxes on their Social Security benefits. There aren’t many benefits to alleviate the burden either.
44. New York
Cost of living: 22 percent above U.S. average
Population: 19.54 million (as of 2018, says U.S. Census Bureau)
Best city: Great Neck, says Yahoo! Finance
PRO: Living in New York City might be good for retirees — it’s very walkable with many necessities nearby and delivery services abound! Small apartments mean living quarters are very manageable.
CON: Although it’s fun and walkable, New York City (and New York state for that matter) are best for well-to-do retirees. It’s not very tax-friendly to retirees and 65 plus individuals suffer high poverty rates, says Kiplinger.
43. Rhode Island
Cost of living: 22 percent above U.S. average
Population: 1.057 million (as of 2018, says U.S. Census Bureau)
Best city: Jamestown, says Niche.com
PRO: One of the original 13 colonies of the U.S., Rhode Island has plenty of history for history buffs and ocean views for nature lovers. It’s located near huge touristy, metropolitan areas for those that love to sightsee.
CON: This small eastern state isn’t very tax-friendly, says Kiplinger. On top of that, the high cost of living (22 percent above U.S. average) might make a dent in the retiree’s wallet. If you’ve been saving for a long time, have a financially supportive family or maybe have won the lottery, Rhode Island can work out for you.
42. Washington
Cost of living: 21 percent above U.S. average
Population: 7.1 million
Best city: Vancouver
PRO: Washington, in general, isn’t the cheapest place to live, but those craving the Pacific Northwest lifestyle at budget prices might head to Vancouver. There, retirees will find more affordability and the lack of a state income tax.
CON: Its cost of living is 21 percent above the national average, that’s less than California and Hawaii, but still might be an obstacle for some seniors. The average income for households 65 plus is over $55K, which might help balance your budget out.
41. New Hampshire
Cost of living: 18 percent above the U.S. average
Population: 1.3 million
Best city: Gilford
PRO: It’s quite tax-friendly in New Hampshire, says Kiplinger, as it doesn’t tax any retirement income. For those with lots of healthcare needs, the state ranks fifth for senior health, according to the United Health Foundation. An added benefit: its picturesque New England landscapes.
CON: You gotta pay up for those breathtaking landscapes, though! New Hampshire’s cost of living is pretty high compared to the national average, but it might work itself out considering the tax situation. There’s also the cold winters and humid summers to consider.
