Where should pre-retirees thinking ahead to their golden years consider moving? It is not Arizona or Florida, according to LPL Financial.
Instead, pre-retirees may be surprised to learn that their best living situations probably include the Midwest and in some very snowy areas of the country, according to LPL Financial’s Retirement Environment Index. The study was geared for people ages 45 to 64 who want to maximize their income while thinking of retirement.
LPL gave the heaviest weight to states' financial situations and second most to health care availability and the quality of health care, says Matthew Peterson, chief wealth strategist at LPL Financial.
“We did not consider the weather. We wanted to expand people’s horizons beyond Florida and Arizona. A state that has a poor financial situation may raise taxes or cut benefits. The resources in a state with a lot of retirees may be overwhelmed,” Peterson says.
Full employment before retirement can mean a bigger nest egg, and the availability of affordable housing and assisted-living facilities are crucial to older Americans, says LPL. The states also were judged on the availability of employment and education and the overall wellness of residents.
LPL ranked the 50 states and the District of Columbia. Following are the top 10 places for pre-retirees in ascending order and a few of the reasons each stands out.
10. Iowa
Situated in the center of Midwestern farm country, Iowa has managed to build stable state financing and its residents have a good quality of life.
9. Utah
Utah gets an A grade for the wellness of its residents and a B for the state’s finances.
8. Missouri
The Show Me State earned an A for the availability and quality of health care, and the state’s finances are stable.
7. Virginia
Virginia is not only for lovers, it also is good for pre-retirees. The state has stable finances and earned an A grade for quality of life. A slight downgrade in the financial category, from an A to a B, lost the state the number-one ranking it had held for the past two years.
6. Tennessee
Tennessee wins an A rating for its finances and a B for the availability of housing.
5. Wyoming
It may be cold and snowy in the Tetons, but Wyoming earned an A for its finances and for its quality of life.
4. South Dakota
South Dakota gets an A for finances and nothing below a C for any other category.
3. Minnesota
The Land of 10,000 Lakes earned straight B’s, except for its poor housing availability.
2. Michigan
Michigan earned B’s for the two heaviest-weighted categories: state finances and the availability and quality of health care.
1. Nebraska
Nebraska moved several spots higher to take the number-one spot in this year’s rankings. Although Nebraska slipped one grade in availability of housing, improved scores in the financial and community quality of life categories helped the state move to the top of the rankings.