When we retire, we all want to sit back and relax in our golden years. However, due to some unfortunate circumstances, some states make it difficult for retirees to enjoy their well-deserved rest.
Many retirees find themselves in a more expensive U.S. state upon retirement, whether it's due to the rising cost of living, high taxes, or lack of healthcare facilities.
This article will explore 16 U.S. states that are not ideal places for boomers to retire. If you are a boomer or know someone who is planning for retirement, keep reading to find out which states to avoid.
What to Look for in a State for Retirement?
Before we dive into the list, it's essential to understand what makes a state good or bad for retirement. Here are some factors to consider when looking for a retirement-friendly state:
1. Cost of living: When we retire, we have limited income and want to make the most of it. A state with a high cost of living can quickly drain our retirement savings.
2. Taxes: Some states have higher taxes than others, especially regarding property, sales, and income taxes. You need to carefully consider these tax implications before choosing a state.
3. Healthcare facilities: As we age, we are more prone to health issues. It's essential to have access to good healthcare facilities in case of medical emergencies.
4. Climate: Many retirees prefer to move to a state with warm and mild climates, as outdoor activities can be easier on their bodies and more enjoyable.
5. Crime rate: The last thing you want to worry about during retirement is crime. A state with a high crime rate can make you feel unsafe and uncomfortable in your own home.
Now, every individual is different, and so are their preferences.
Some people may prioritize a warm climate over taxes, while others may prefer access to healthcare facilities over the cost of living. It's important to consider your personal priorities and needs when choosing a state for retirement.
16 U.S. States to Avoid for Retirement
Based on the above factors and other considerations such as quality of life and amenities, here are 16 states that may not be the best for retirement:
1 . New York
New York is a tough spot for Boomers looking to retire. The main reason? Living there is very expensive, especially in places like Manhattan.
Besides high costs, New York is also known for its busy lifestyle, which might not be what typical retirees seek. They often look for quieter, more relaxed places, so New York might not be the best choice for those wanting a peaceful retirement.
2. California
California, while beautiful, can be a tricky place for Boomers to retire. The biggest issue? It's very costly, from everyday expenses to buying a house.
Also, taxes are higher here than in many other states. While the weather is excellent and there are many things to do, the high cost of living makes it difficult for retirees to enjoy everything without worrying about their budget.
3. Illinois
Illinois poses challenges for Boomers thinking about retirement. One big problem is the state's financial health, leading to high taxes, including property taxes, which can eat into a retiree's budget.
Additionally, the weather in Illinois can be harsh, with cold winters that might not appeal to everyone. These factors make Illinois less attractive for those looking to enjoy their retirement years comfortably and affordably.
4. New Jersey
When considering where to retire, New Jersey might not be the best pick for Boomers. Why? It's mainly because living here can get pretty expensive.
The state has some of the highest property taxes in the country, which can be tough on a retiree's budget. Plus, while there are nice areas and the coast is lovely, these costs can make it hard for retirees to stretch their dollars.
5. Connecticut
Retiring in Connecticut can be challenging for Boomers. The cost of living is high, which makes it hard to manage on a fixed income. The state has high property taxes, adding more to the monthly expenses.
Even though Connecticut has beautiful scenery and seasons, these financial challenges can make it difficult for retirees to fully enjoy what the state offers.
6. Maryland
Retiring in Maryland isn't ideal for Boomers, and here's the simple reason – it's expensive. The cost of living is high, especially near cities like Baltimore and Washington, D.C. This means everything from housing to groceries can strain a retiree's budget.
Additionally, Maryland has high income taxes, which can further deplete the money Boomers have saved for their retirement years.
7. Massachusetts
Massachusetts is indeed home to some of the top universities and hospitals in the country, but that also means it's an expensive place to live.
The state has high property taxes and a high cost of living, making it difficult for retirees on a fixed income. Plus, winters here can be brutal, with snowstorms and below-freezing temperatures that may not be appealing for those looking to enjoy their golden years.
8. Oregon
Next up on our list is Oregon, another state that can pose financial challenges for retirees. The cost of living is high, especially in major cities like Portland and Eugene. This makes it challenging to maintain a comfortable lifestyle on a fixed income.
Additionally, Oregon has a high state income tax rate, and property taxes can be expensive here, straining retirees' budgets.
9. Rhode Island
Even though Rhode Island is the smallest state in the country, it still has high living expenses. The cost of housing and utilities can be a burden for retirees on a fixed income.
The state also has high income taxes, which can further decrease the money available for retirees to enjoy their retirement years. Another issue is that Rhode Island has high healthcare costs, which can quickly increase for older adults.
10. Vermont
Vermont, which is ranked 10th on our list, is a state known for its beautiful landscapes and outdoor activities. However, these perks come at a cost for retirees.
Vermont has high property taxes and a high cost of living, making it difficult to maintain a comfortable lifestyle on a fixed income. It also has high state income taxes, which can financially burden retirees.
Plus, cold and snowy winters may not be ideal for those who want to enjoy their retirement years outdoors.
11. Pennsylvania
Who would have thought so many states could be financially challenging for retirees? Pennsylvania is another state that may not be the best option for those on a fixed income.
The state has high property taxes and some of the highest gas prices in the country. Additionally, the healthcare costs are above average, making it difficult for retirees to afford good medical care.
However, if you don't mind the cold winters, Pennsylvania has much to offer regarding outdoor activities and cultural experiences.
12. Ohio
An interesting fact about Ohio is that it's the birthplace of seven U.S. presidents! Unfortunately, it may not be the most ideal state for retirees to settle down in.
The cost of living in Ohio is slightly higher than the national average, and property taxes can also be higher. Healthcare costs are also above average here.
The winters can be long and harsh, which may not suit retirees who prefer warmer climates.
13. Wisconsin
Next, we have Wisconsin, another state that may not be the most budget-friendly for retirees. The cost of living here is above the national average, and housing prices can also be higher.
Property taxes are also high, and healthcare costs are above average. However, Wisconsin may still be a great place to retire if you enjoy outdoor activities like fishing and hiking.
14. Michigan
Michigan is known for its beautiful lakes and outdoor recreation opportunities, but it may not be the best state for retirees on a fixed income.
The cost of living is above the national average, and property taxes can also be high in some areas. Healthcare costs are above average, which can be challenging for retirees to afford.
However, if you're willing to endure cold winters, Michigan has much to offer regarding natural beauty and cultural experiences.
15. Minnesota
Another beautiful state with plenty of outdoor activities to offer, Minnesota may not be the most affordable option for retirees.
Again, for the same reasons, the cost of living is above average, and property taxes can also be high.
However, healthcare costs are slightly lower here compared to other states on this list. For those who enjoy an actual winter experience with snow and ice activities, Minnesota may be an excellent choice for retirement.
16. Maine
Lastly, we have Maine, a state known for its stunning coastlines and seafood. However, if you are a retiree, you might want to carefully consider this state before choosing it as your retirement destination.
The cost of living is above the national average, and housing prices can be high in popular coastal areas. Property taxes are also higher, and healthcare costs are slightly above average.
So, if you are willing to budget and sacrifice for the beautiful scenery, Maine could be a great place to retire.
Not Every State is For Retirement
Not every state is made for retirement, and Boomers planning their golden years should carefully consider all factors before making a move. Each state has its unique pros and cons, and it's essential to prioritize what is most important for you. So, research and consult with a financial advisor before making big decisions.
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I’m Steve. I’m an English Teacher, traveler, and an avid outdoorsman. If you’d like to comment, ask a question, or simply say hi, leave me a message here, on Twitter (@thefrugalexpat1). Many of my posts have been written to help those in their journey to financial independence. I am on my journey, and as I learn more I hope to share more. And as always, thanks for reading The Frugal Expat.
