A new study by Bankrate.com has examined key metrics to rank all 50 U.S. states based on their suitability for retirement. The study evaluated factors including cost of living, public health, affordability, weather, and crime to create a comprehensive ranking of the best and worst states for retirees.
Why Affordability Matters
The most heavily weighted factor was affordability, reflecting the economic challenges that many Americans currently face. With a competitive housing market, rising inflation, and diminishing retirement savings, cost-effectiveness has become a crucial consideration for retirees. However, the study also highlights the importance of personal preferences, such as proximity to family and climate preferences, that can greatly influence this decision.
Top States for Retirement
According to Bankrate’s study, the best state for retirement is Iowa, with Delaware, West Virginia, Missouri, and Mississippi rounding out the top five. The study found these states provide a combination of affordable living, quality healthcare, and low crime rates. Iowa, in particular, is noted for its affordable lifestyle, high-quality healthcare services, and the sizable portion of its population over 65.
Delaware earned high marks for its high-quality healthcare, light tax burden, and diversity. West Virginia stands out for its affordability, with the nation’s lowest cost of living and light tax burden. Missouri and Mississippi also scored well on affordability, but had some challenges regarding healthcare quality and overall well-being.
Not-so-great States for Retirement
On the other end of the spectrum, the states deemed the least favorable for retirement were Alaska, New York, California, Washington, and Massachusetts. These states ranked poorly due to their high cost of living, particularly housing and healthcare, and, in Alaska’s case, harsh weather.
Making the Move
While some people dream of moving to a new location in their golden years, the reality is that most American retirees stay put. Only about 6.2% of those aged over 65 relocated in a given year from 2015 to 2019, according to the U.S. Census Bureau.
For those who do relocate, the primary reasons include living closer to family members, seeking better neighborhoods, and reducing housing costs. Some experts suggest trying out a potential retirement location by renting for six months before committing to a permanent move.
Retirement Planning Tips
Experts advise potential retirees to consider both current and future costs when planning a move, recommending trial periods in new locations before making a decision. It’s crucial to anticipate changing needs and make sustainable choices that consider long-term expenses.
In addition, financial advisors recommend that those considering a move for retirement use a retirement calculator to evaluate their current savings and future needs.
While the Bankrate study provides an objective starting point, it’s essential to consider personal factors in this life-altering decision. Everyone’s ideal retirement destination will differ, shaped by financial resources, lifestyle preferences, and personal goals for their golden years.
