Kiplinger rated all 50 states based on quantifiable factors that are important to many retirees, and posted
“The 15 Worst States to Live In During Retirement”
The rankings penalized states with high living expenses—especially taxes and health care costs—and rewarded states with relatively prosperous populations of residents age 65 and up. They also ranked states lower if their populations are medically unhealthy, or if the state has fiscal health problems (red ink in state budgets could lead to tax hikes and program spending cuts for seniors).
Using their methodology, here are the 15 least attractive states for retirees.
What does that have to do with Delaware? We always wonder why we see so many boomers relocating from Connecticut, New Jersey and New York to Delaware. Coming in at #4, #2 and #1 respectively… enough said.
The Constitution State does little to promote the general welfare of its resident retirees. In fact, Connecticut ranks among the 10 tax-unfriendliest states for retirees. Real estate taxes are the second-highest in the country. Some residents face taxes on Social Security benefits, and most other retirement income is fully taxed, with no exemptions or tax credits to ease the burden. Because Connecticut ranks 47th out of all states for fiscal soundness, state taxes are not likely to go down any time soon.
Retirees planning to plant themselves in the Garden State might want to reconsider. Both living costs and taxes in New Jersey take a big bite out of retirement nest eggs. The combined state and local tax burden is the second-highest in the nation. And it doesn’t ease up after you die—the money you leave behind is subject to both an estate tax and inheritance tax (though there are exemptions for spouses and some others). Plus, with the second-worst ranking for fiscal soundness, behind only Illinois, the tax picture is unlikely to improve soon.
One (pricey) Big Apple spoils the entire Empire State. Manhattan reigns as the most expensive place to live in the U.S., with costs soaring 127.4% above the national average, according to the Council for Community and Economic Research. New York sports the second-highest living costs of any state, behind only Hawaii. Despite boasting an average income for residents age 65 and older that’s among the top five in the country, the same age group suffers a poverty rate of 11.4%, worse than the national 9.4% rate.
To read the full post, click here. If you’re looking for your next new home, give Delaware a try.
Got questions? Just ask. We have answers!