The best state to retire in the United States is also one of the smallest, while the worst state to retire is the largest.
Alaska is the worst state in the United States to retire for the third consecutive year, according to Bankrate’s research of the best states to retire in 2024. Bankrate assessed all 50 states in five weighted areas to determine the best and worst places to retire in the United States.
Affordability (40%): Considers local and state sales taxes, cost of living, and average annual property taxes.
Overall well-being (25%): Includes criteria such as the number of persons above the age of 62 per 100,000 population and access to food and healthcare.
Quality and cost of health care (20%): Examines aspects including the expense of health care at the state level and the performance of each state’s health system.
Weather (10%): Examines data on factors such as a state’s average yearly temperature and the average amount of tornado strikes, earthquakes, and hurricane landfalls.
Crime (5%): Looks at elements including the number of property crimes and violent crimes per 100,000 population.
Bankrate reviewed data from several sources, including the Council for Community and Economic Research, the United States Census Bureau, the Tax Foundation, and the National Oceanic and Atmospheric Administration.
Here are the 10 worst states to retire, according to Bankrate.
Notably, Alaska is ranked worst in the weather category. Although temperatures in Alaska can range from 45 to 75 degrees Fahrenheit in the summer, they can drop as low as -10 degrees Fahrenheit in the winter.
Alaska can be an expensive place to live, particularly for seniors on a fixed income. According to RentCafe, the average cost of living in Alaska is approximately 30% higher than in the rest of the country. Housing expenditures are approximately 17% higher than the national average, while utilities and health-care expenses are nearly 50% higher.
On the plus side, Alaska can be a very tax-friendly destination for retirees. The state imposes no income, estate, or inheritance taxes, nor does it charge Social Security pensions or retirement benefits.
Lack of affordability appears to be a common thread throughout the other low-ranking states on the list, which include New York, Washington, and California, all of which are notorious for their high prices.
However, just because a state has a greater cost of living does not indicate it is unsuitable as a retirement location. You may simply need to prepare to save more money for retirement than if you were going to retire somewhere less expensive.
CNBC Make It’s retirement calculator will help you estimate how much you’ll need to save for retirement depending on your current age, savings, income, and desired retirement date.
While living costs can be an important factor in selecting where you wish to retire in the future, you should also consider other non-financial factors. According to Bankrate, access to social and community-building activities is a crucial but frequently ignored aspect for retirees.
“Having that sense of community and human connection is huge for healthy aging,” Kerry Hannon, a retirement specialist and author of “In Control at 50+: How to Succeed in the New World of Work,” said in Bankrate’s study.
“Isolation and loneliness are not something you want to move toward, so look for your community,” she informs me.
