There are many factors that need to be considered by retirees before making the decision of relocating. Many places are really good to visit but shifting to a specific location demands research on impact factors such as tax rates, cost of living, housing rates, etc. When it comes to overall affordability, taxes and healthcare facilities play an important role in helping stretch that fixed income for a long period.
Here’s a list of US states that hold the lowest appeal for retired people:
- New York
It’s the most expensive state to live in the US as the tax rates and cost of living are extremely high. State and local income taxes of New York are the highest in US whereas property taxes rank the fourth highest in all 50 states. According to surveys, a couple who would retire in New York will be facing a cost of $413,597 for health care. Healthcare and housing, the two most important staples for seniors, are very expensive to afford in the Big Apple. This puts New York at the top of the list for worst US states for retirees.
The highest income tax in the entire US, the highest cost of living after New York and Columbia and full tax imposed even on retiree’s income make “California dreaming” more of a nightmare. Currently sales tax is at 7.5% but in Californian cities, it can vary up to 10%. Apart from these taxes, property values are also sky-high. A median home value sums up to $368,600 in California, which is more than double the national median. All these conditions make the Golden State an unfavorable place for retired people.
- Washington D.C
The U.S capital is a location that must be mentioned when suggesting places to avoid for retired people. It is very close to New York in high cost of living and the second highest in median home value of $424,400 after Hawaii. Though D.C has the highest average income for senior people, the poverty rate is also high at 14%. The income tax rate of D.C is the highest in the U.S at 8.9% and even a high sales tax at 5.75%. Apart from financial perspective, peace of mind is something that’s very rare to find in this state for retirees, as violent crime rate is 3.5 times the national rate and property crime is also very high.
Starting a life in the Beaver State for retirees on a fixed income is really difficult. There was a research report of Council for Community and Economic that states how Portland apartments are charging double the national average rental fee at $2,196 per month. Even gasoline is 11.7%, doctor consultation fee is 27.7%, and these are much higher than the national average. Here sales tax is not imposed but income of more than $125,000 and retirement income are burdened with 9.9% income tax.
Blue ocean waves, cool sea breeze and a perfect blend of Polynesian culture makes the Aloha State a dream place to spend your retirement, but living such a life in Hawaii will cost much more than you bargained for. It is a major tourist destination which makes it a place with extremely high cost of living. It has the most expensive median home rent at $2,975 a month, which is 3 times the national average. Though retirees have social security benefits and pension exempts from income taxes, Hawaii is the second highest among all states with an income tax range at 11%.
These are the places that are totally unfavorable for retired people, but that doesn’t make them the worst places to live. These might be great states to work in or raise a family. Many of you might choose to stick around these places simply to be close to your grandchildren and the emotional attachment of your family members. However in practical terms, retirement might be better if you choose to settle elsewhere apart from these places.
Life after retirement might sound very simple but it’s not so. There are many things that retirees consider to spend their life after retirement comfortably. These things will help to narrow down your search for the ideal place to spend your golden years. However, what determines where you’ll live is your financial status after you retire.
Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get instant approval cash advances when they need it. Kimmy has over 20+ years’ experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field. Kimmy also has a number of pets including cats, birds, and a Chinese water dragon.