Some people dream of retiring to new and unfamiliar places, while others stay put in those spots they know and love, whether or not such places are affordable on a fixed income. That’s a choice that comes with consequences, warns personal finance website Bankrate.
“Where to live is probably one of the most personal decisions one can make, because it’s not just about preferences, it’s also about the financial considerations that are associated with it,” says Mark Hamrick, senior economic analyst at Bankrate.
According to a 2018 survey by the Transamerica Center for Retirement Studies, almost four in 10 retirees (38%) say they’ve moved at least once since leaving work. However, the survey found that when choosing where to live in retirement, respondents say they value proximity to family and friends, affordable cost of living, access to excellent health care and hospitals, good weather and a low crime rate.
Bankrate says that according to Fidelity Investments, a typical couple who retire this year at age 65 are estimated to need $285,000 in today’s dollars for medical expenses in retirement. Rising health-care costs are making that estimate a difficult expense for many retirees to meet, depending on where they choose to retire. And with most employers no longer offering a pension to new hires, increasing numbers of retirees are struggling to make ends meet on what they have saved or invested for retirement.
Choosing to stay or relocate to a state that stretches financial resources to their limit could make retirement unaffordable, rather than a long-planned dream come true.
Here, working backward to the worst, are Bankrate’s top 10 worst states to retire.
10. South Carolina
Pastel-colored houses and subtropical beaches beckon retirees to historic South Carolina, but they should think twice before moving there. The Palmetto State ranked 50th for wellness and 45th for crime, earning an overall rank of 41st.
9. New Jersey
Geographically located between New York City and Philadelphia, New Jersey offers workers an easy commute, but offers retirees one of the least affordable lifestyles in the survey, with the Garden State ranking 48th in affordability. Despite ranking fifth in crime, New Jersey ranked 41st overall.
8. California
Golden dreams meet hard realities in California, the nation’s most populous state. The Golden State ranks 13th for great weather, 17th for culture and 19th for wellness, but 49th for affordability. California ranks 43rd overall.
7. Oregon
Oregon’s largest city of Portland is famous for its coffee shops, boutiques, and farm-to-table restaurants and microbreweries – but you’ll only enjoy them if you can afford them. While the Beaver State ranks sixth in culture, it ranks 45th in wellness – a necessity for aging retirees on a fixed income. Oregon ranks 44th overall.
6. Nevada
If you choose to retire to Nevada, first make sure that Lady Luck is on your side. You’ll need her because the Silver State’s economy is tied to tourism, not retirement. Although Nevada ranks 17th in culture and 27th in weather, it ranks 40th in crime and 48th in wellness. The state has an overall rank of 45th.
5. Washington
Located in the Pacific Northwest, Washington is the only state named for an American president. But if George Washington were alive today, he could not afford to retire there. The Evergreen State ranks 41st in affordability and 46th overall.
4. Illinois
Illinois offers scenic delights marked by farmland, forests, rolling hills and wetlands. If you want to retire anywhere near its largest city of Chicago, however, make sure to bring a wallet as packed with greenbacks as the metropolis is sights to see. The Prairie State ranked 40th in affordability and 49th in wellness. Illinois ranked 47th overall.
3. Alaska
The United States purchased Alaska from the Russian Empire in 1867 for the bargain price of $7.2 million U.S. dollars, or about two cents per acre. Those days are gone. America's Last Frontier is now one of the most expensive, dangerous and inhospitable places to live, ranking 38th in affordability, 49th in crime and 50th in weather. Alaska ranks 48th overall.
2. New York
Home to the nation’s most populous city, the Empire State offers retirees close proximity to a dazzling array of things to see and do, but at a cost they may not be able to afford. The state ranks seventh in culture and 11th in crime, but 50th in affordability. New York ranks 49th overall.
1. Maryland
Maryland’s close proximity to the nation's capital of Washington, D.C., is both a curse and a blessing for those who live there. Its saving grace is the mild weather, which ranked 18th, but the Old Line State ranks 47th in affordability and 50th overall.
