Map Reveals the U.S. States Least Suitable for a Comfortable Retirement
With inflation high and Social Security covering only a minor part of what seniors ultimately spend during their retirement years. retirement is no longer the guaranteed financial truth it once was.
For many decades, elderly individuals depended on pensions; however, nowadays, they frequently need to carefully plan their retirement funds to ensure financial security throughout their golden years.
However, certain states provide more advantages for retirees, as indicated by a recent report from SellMyTimeshareNow.com. This analysis, which takes into account various elements such as median income, typical rental prices, criminal activity levels, and healthcare expenses, evaluated all 50 states and identified several places where retirement can be particularly challenging.
Mississippi has been named the least favorable state for retiring due to having some of the highest crime rates along with the smallest average wage of $45,180. This minimal earnings can make it difficult for elderly individuals to set aside funds for their later years and also exposes them to greater criminal activity.
Following Alabama on the list featured a modestly higher mean income of $50,620 along with a crime rate of 3,127 incidents for every 100,000 individuals. Additionally, annual medical expenses averaged around $9,280.
Kevin Thompson, a finance specialist and the founder/CEO of 9i Capital Group, stated, "The South typically experiences greater poverty rates because of smaller median incomes." . Most of these states have a larger proportion of residents depending on government assistance programs such as Medicaid and SNAP.
Third on the list was Idaho, where retirees faced particularly tough conditions, largely because of escalating housing costs as highlighted in the report. Individuals relying on set incomes might struggle even more to manage a comfortable retirement within the state due to these increasing expenses.
The least favorable states for retirees included Iowa and Arkansas, where both experienced relatively modest average annual incomes. In Iowa, residents faced particularly steep property tax burdens, whereas Arkansas grappled with an elevated overall crime rate of 3,428 incidents per 100,000 individuals.
Florida, often seen as the ultimate destination for retirees, failed to make it into either the top 10 or the bottom 10 in the market rankings.
Best States to Retire
Although many areas in the South presented a less welcoming climate for retirees, several states performed more favorably in the rankings.
Alaska topped the list as the most favorable state for retirees, boasting an average salary of $66,120, which is notably above the nationwide average. Additionally, the state does not impose an income tax, and senior citizens can enjoy reduced property taxes on their residences.
New York and Colorado followed closely behind as the second and third top choices for retirement.
The residents of New York City earned an average income of $74,870 annually, making it the highest across the country. This led to greater retirement funds for elderly citizens. Additionally, these individuals typically experienced a reduced overall crime rate of only 1,747 cases per 100,000 inhabitants.
Thompson mentioned that both Alaska and New York’s top rankings were unexpected, considering their weather conditions and expenses. He explained, “It’s rather startling to see New York at the top since historically, numerous individuals have moved away from the state seeking more affordable places such as Florida with milder temperatures.” Regarding Alaska, he added, “The exorbitant cost of life persists because of its isolated location.”
Nevertheless, individuals who are setting money aside for retirement might find it more beneficial to look towards states offering higher wages. Even though conventional wisdom suggests that Southeastern U.S. states are ideal for retirees due to lower living costs, the income levels in these regions aren’t typically sufficient to accumulate the necessary savings for a viable retirement, as explained by Alex Beene, a financial literacy educator at the University of Tennessee at Martin. .
States such as New York might have a greater expense for daily living; however, they often offer better-paying jobs which could lead to a more substantial savings account for your retirement.
Coming in at third place, Colorado boasted a substantial average salary of $67,870 along with comparatively low crime rates. The state’s mountains and various leisure activities might particularly appeal to older residents.
Both Washington and Oregon scored well with regard to their above-average salary levels and relatively low crime rates. Additionally, these states offered median housing and healthcare expenses, making retirement more manageable for seniors.
An expert from SellMyTimeshareNow.com stated, “Retirement planning encompasses numerous elements aside from the amount a family manages to set aside.” They continued, “The cost of living, medical expenditures, and safety levels play crucial roles in determining where retirees decide to live. States boasting high median incomes alongside low taxation may ensure a more pleasant retirement; however, it’s vital to weigh these against daily living costs and individual inclinations.”
Beene stated that for many retirees, their anticipated expenditures during retirement will significantly influence the decision of where to reside.
Should maintaining a modest budget be your aim, salaries in Mississippi and Alabama might suffice to generate reasonable savings for retirement due to the reduced expenses in these areas," explained Beene. "Nonetheless, if you wish to preserve your current lifestyle, it could be wise to reassess both your strategy and possibly even where you live.
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