Retirement is one of the biggest transitions that adults face in their lifetimes. Retiring not only marks a new chapter in many people’s lives, but it is a big financial hurdle for many people to overcome. It takes a lot of money to retire and to retire comfortably. If you are able to plan out a financially successful retirement, then you can easily make the most of this exciting phase of your life and all of the fun that retirement can bring.
While retiring is a very personal journey for all adults, there are certain American states that are great for retirement finances and can help seniors as they work towards reaching their retirement goals. Adversely, there are also many states that are not great for retirement finances and can present new obstacles for seniors who are looking to save enough to retire.
Fortunately, SeniorAdvice has detailed all of this information by creating a list of the best and the worst states for retirement finances. By using an algorithm called SeniorScore, SeniorAdvice made a detailed list for both categories. The SeniorScore algorithm looks at over 100 different variables and for this list, takes several financial factors into consideration. Some of the factors include tax rates, average income, cost of living, and average senior living costs.
What State is the Best for Retirement Finances?
Whether seniors already live in one of these states, or are looking to move, having an understanding of the best and the worst states in each of this category can help any senior looking to plan for retirement. According to SeniorAdvice, their best overall state for retirement finances was Wyoming. The average annual income in Wyoming is $70,000, which is more than the national average, while state sales and income tax are lower than the national average. Property taxes are lower as well. As for seniors who want to enjoy services like adult day care or nursing home costs after retirement, these costs in Wyoming are also below the national average.
While Wyoming has earned the top spot as the best state for retirement finances, there are other states that have made the list as well. Virginia, South Dakota, Alabama and Louisiana all rounded out the list of top spots for retirement finances. All of these states have relatively low cost of living and financial perks that can help make planning for retirement easier.
What is the Worst States for Retirement Finances?
In addition to listing the best states for retirement, SeniorAdvice created a list of the worst states for retirement finances. While there are many seniors who can still happily retire in these states, they provide more challenges than the average state when it comes to successful retirement. The worst rated state was actually California. While the Golden State may seem like a great place to retire, it has high property, sales and income taxes, high unemployment rates, and the cost of living is much higher than the national average. Senior care is also significantly more in this state than it is anywhere else in the country. Seniors should be careful when planning to retire in California, but there are other states that round out the list of worst places for financial retirement as well. Rhode Island, New York, Illinois, and Maine were also listed as bad places to retire, due mostly to a high cost of living.
For the complete list of best and worst places for financial retirement as well as more information on each of these states, check out the complete list at SeniorAdvice.com.