This list to help baby boomers see where they can get the most bang for their buck. You have worked hard your whole life, you want to make the most out of your retirement. These 10 places are ones to avoid.
- Connecticut – High cost of living, high property taxes and income taxes make this the worst state for seniors to make home.
- Illinois – Issues with pension funding and deficits with budgets makes this place difficult for seniors to retire to comfortably. The response from government to fix the issue? Increase in income taxes. Although pensions and Social Security is not taxed, the 5% flat tax can take a big chunk in earnings and investments.
- Rhode Island – Rhode Island is picturesque year round but is not doing well economically. Issues with underfunded pensions and budget deficits make this a difficult place for seniors to live comfortably.
- Vermont – Long winters like Connecticut sees and high median property taxes make this state one of the worst to live in as a retired person. This cannot be a good place to live when locals say it’s too cold for snow.
- Massachusetts – Commonly referred as Taxachusetts, Massachusetts has the nation’s highest property tax and very high cost of living. Social Security is exempt from income tax but the flat rate applies to all other earnings.
- New Jersey – High taxes, the highest property tax in the nation and the highest income tax burden makes it difficult for anyone to live in New Jersey. The state of New Jersey is also facing big budget deficits and has one of the highest costs of living in the nation, second to New York. Pensions and Social Security income is tax exempt for couples making less than $100,000.
- Minnesota – Minnesota puts the heaviest tax burden in the nation on retirees. No income tax exemptions for pensions or Social Security makes it really tough on retiring seniors to live in Minnesota.
- New York – New York has the fourth highest property taxes. New York also ranks high in the nation for the cost of living, and also has one of the worst winters in the nation with high snow totals and bitter temperatures.
- Maine – Maine has lower property tax than Wisconsin but that was the only thing helping it rank 9th. Maine has high income taxes as well.
- Wisconsin – Wisconsin has high income taxes and also very high property taxes. The foreclosure rate in also one of the worst in the nation. One of the bright spots for Wisconsin is Social Security is exempt from income tax.
This list was put together by topretirements.com. Specific factors were looked at to rank the states to for the list. Considered in the rankings was fiscal health, property taxes, stat income taxes, cost of living and of course climate. I guess that’s why almost every state on the list is in bad climate.
Are you looking to retire? A Reverse Mortgage can help you achieve the retirement you have always dreamed of. Not sure if how much you can get from a Reverse Mortgage? Check out our calculator. Or call us today to talk to a licensed professional. They can answer all of your questions.
If you could retire anywhere in the nation, where would you retire to?