If you have saved money for retirement, you probably do not want to lose your nest egg to costs that you cannot control, such as taxes, health care insurance and living expenses. GoBankingRates.com ranked the following 10 most states, in ascending order, as the most expensive in which to retire:
No. 10 Nebraska
Nebraska made it to the list by having “exorbitant” tax rates, according to GoBankingRates.com. The state has the highest inheritance tax rate in the nation at 18 percent and Social Security income tax and property tax rates that are among the highest.
No. 9 Washington
Washington has the highest estate tax in the nation at 20 percent and a sales tax that can range up to 9.5 percent.
No. 8 Massachusetts
GoBankingRates.com calls Massachusetts a “perfect storm of bad conditions for keeping retirement money.” It has a high cost of living, higher than average taxes and relatively high health care insurance costs.
No. 7 Rhode Island
Taxes will drain retirement money in Rhode Island, which has the highest Social Security income tax rate at 9.9 percent, along with an estate tax and relatively high property tax rates.
No. 6 Vermont
Vermont may be next to no-tax New Hampshire, but it represents the other end of the spectrum, with taxes on estates, inheritance, Social Security income and property taxes. The state also has higher-than-average home prices.
No. 5 California
California residents face one of the highest cost of living expenses, including one of the highest average home prices.
No. 4 Connecticut
Connecticut ranked among the worst states to retire because of its taxes, including high property taxes, and its high cost of living.
No. 3 Illinois
Retirees in Illinois face some of the highest property and sales tax rates in the country and only average health care insurance costs.
No. 2 New Jersey
New Jersey residents pay the highest health care insurance costs in the nation, with an average of $473 a month, and receive less-than-average Medicare payouts. They pay the highest median property tax rate in the nation.
No. 1 New York
New York has high health care insurance costs and high cost of living and high home prices.