The Worst States for Retirement
December 8, 2010 by MJP
Filed under Places to Retire
I enjoy reading lists that rank things of interest to me. You can find many lists that rank locations based on different criteria, including the somewhat nebulous criteria of “retirement.”
One approach to selecting a retirement destination is to start by eliminating the worst candidates, at least at the state level. The Top Retirements site has taken that step for us by recently publishing its own list of the worst states for retirement.
In compiling their list, the editors used a variety of ranking criteria which were heavily weighted towards fiscal health, taxation, and climate. I agree with placing special importance on fiscal health and taxation. As a group, retirees are the most vulnerable to cost of living increases in areas that they cannot control. A contented retiree can quickly be taxed into a stressed retiree. A state that cannot properly manage its own budget is clearly a candidate for raising taxes on its citizens.
So which states should you avoid for your retirement? Here is the “worst ten” list:
1. Illinois
2. California
3. New York
4. Rhode Island
5. New Jersey
6. Ohio
7. Wisconsin
8. Massachusetts
9. Connecticut
10. Nevada
I am not surprised by any of the states on this list and probably would have named 7 of the 10 immediately without looking at any data. All of the states except Nevada have high tax burdens, either income tax, property tax, or both. Some of the states are particularly dysfunctional in their budget politics, notably California, New York and Illinois.
Excluding California and Nevada, all of the states on the list have lousy climates for retirees. California’s weather cannot overcome its severe economic, immigration, and political leadership problems.
Nevada has entered the “worst state to retire” list because it has become a foreclosure nightmare. There is no telling when it might recover and whether that recovery can be achieved without a state income tax.
We are planning on living in Tennessee and Kentucky when we retire. A combination of good climate, low taxes, and friendly people is hard to beat.
Here is the link to the full article: Our Worst States to Retire List
What do you think about the list? Have you been investigating other states for retirement?
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I have been thinking where to retire recently though my husband (51) thinks I (56) am a early bird on this topic. We are in California, San Francisco Bay Area to be more specific. I think California is a fine place to retire if high housing cost doesn’t bother you. With the current financial crisis, housing becomes affordable here. Weather is almost perfect and nature abundant. Aren’t Tennessee and Kentucky nowhere places? Humid in summer and cold in winter? If we can not afford California, Washington, Oregon, British Columbia, Nevada are our 2nd choices.
The only reason California is on top of the worst is its fiscal status. But isn’t California the most GDP producing state? How public fiscal status will affect retirees who doesn’t have high income? Can you tell me why you choose Tennessee and Kentucky?
Enjoyed reading your blog.
I don’t know what your religion is, but are there issues with religious intolerance in Kentucky and/or Tennessee? I know both states have a large Christian population.
The crisis makes Nevada’s housing very reasonable. If you are retired, you are no longer worried about the schools. Resorts take place of public rec centers. I am thinking I disagree that Nevada as a bad place.If not- then Florida should be right there with it!
I live in a “worst” state. It is very expensive and has been for a long time. There are some redeeming qualities such as an amazing choice of restaurants, cultural events and medical professionals. Being near family is critical to us but even if that were not a consideration, moving to a “better” state would not be easy. I am more fortunate than most — I can afford to live here.
Do not retire in Prescott Valley AZ. The houses are resonable but the sales
tax is close to 12 percent. The utilites are extremely high for a western state. The wind blows constantly.