Want a great place to retire? Try Virginia.
LPL released its 2016 Retirement Environment Index on Wednesday, which provides a holistic view of issues important to retirees. The index is designed to enable pre-retirees to look at different factors of retirement based on what is important to each individual, LPL says.
The index measures such things as financial data, healthcare, housing, community quality of life, employment and education, and wellness, aspects that are considered to contribute to a happy retirement. Each category was divided into a number of subcategories and the 50 states and District of Columbia were scored on each subcategory.
Virginia grabbed the top sport for its good overall quality of life and favorable financial grades in such areas as taxes and cost of living. The other top states in order are South Dakota, Wyoming, Michigan and Iowa. Michigan made the top five this year, after ranking 19th last year, because of its improvement in the financial categories, LPL says.
California ranked at the bottom because of its elevated tax burden—fifth highest in the nation—and an extremely high cost of living. Healthcare did not play to the state’s favor either, as healthcare expenditures per capita are below national averages, and it has a higher than average number of pre-retirees who do not have health insurance.
Alaska, New York, Oregon and New Jersey round out the bottom of the list. Florida, thought to be a retirement paradise by many, came in at only 39.
Regional trends were apparent in this year’s Index, with the Midwest the winner in the financial category thanks to a cost of living that is well below the national average, and a household median income that is above the national average. The Northeast was the standout in healthcare because of its excellent access to care and the cost of quality care.
“The insights provide a comprehensive view of the factors highly considered when planning for retirement,” says Anthony Valeri, senior vice president, LPL Research, and the study’s co-author. “The retirement environment seeks to discover the complicated answer to the simple question: Which state is most desirable for pre-retirees? And while each pre-retiree’s decision is based on individual factors, the category grades are designed to illuminate the different ways that desirable can be defined.”
The report can be found here.