Friday, January 19, 2018

Best and Worst States to Retire


Here Are 2018's Each year, countless workers rack their brains trying to determine whether the time is right to bring their careers to a close. But while deciding what age Map of United States
to retire is certainly important, it's just as crucial to figure out where to retire. After all, once you stop working, you'll move over to a fixed income, at which point you'll need to put more thought into how much you're spending each month.

Furthermore, since you'll have a lot of time on your hands in the absence of a full-time job, you'll probably want to live someplace that offers a decent array of local amenities and entertainment.

With all of that in mind, WalletHub recently compiled a list of the best and worst states for retirees this year. The data you're about to see is the result of various factors, including cost of living, amenities and attractions, and senior health services -- and it might actually help you land on the best state for your golden years.

Where should you retire?

There are numerous points to take into account when determining where to retire. As a starting point, however, here's how WalletHub's rankings shake out for the current year:
Overall RankStateOverall RankState
1Florida26Oregon
2Colorado27South Carolina
3South Dakota28North Carolina
3Iowa29Michigan
5Virginia30Alaska
6Wyoming31Illinois
7New Hampshire32Indiana
8Idaho33Nebraska
9Utah34Connecticut
10Arizona35Tennessee
11Minnesota36Oklahoma
12Wisconsin37Georgia
13Montana38Maryland
14Pennsylvania39Vermont
15California40New York
16Nevada41Alabama
17Kansas42Hawaii
18Missouri43New Mexico
19Massachusetts44Louisiana
20Ohio45West Virginia
21Washington46Arkansas
22Texas47Mississippi
23Maine48Rhode Island
24North Dakota49New Jersey
25Delaware50Kentucky
Of course, that table speaks to the 50 states' overall rank, but as a near-retiree, you may be inclined to base your decision heavily on cost of living. The following table ranks all 50 states in terms of senior affordability alone:
Affordability RankStateAffordability RankState
1Florida26Iowa
2South Dakota27Kansas
3Alabama28Pennsylvania
4Wyoming29New Hampshire
5Tennessee30Alaska
6South Carolina31Oregon
7Oklahoma32Wisconsin
8Nevada33Michigan
9Texas34Washington
10Mississippi35North Dakota
11Idaho36Maine
12Missouri37California
13Ohio38Kentucky
14Montana39New Mexico
15Delaware40Illinois
16West Virginia41Nebraska
17Louisiana42Minnesota
18Virginia43Massachusetts
19Indiana44Maryland
20Arkansas45Connecticut
21Arizona46New York
22Utah47Vermont
23Colorado48Rhode Island
24Georgia49Hawaii
25North Carolina50New Jersey
Notice that while some states, like Florida and South Dakota, align pretty well in terms of overall rank and affordability, other states sport a pretty notable gap. For example, New Hampshire ranks seventh overall yet falls into the bottom half of all states as far as cost of living goes.

Now if money is a huge sticking point (and frankly, it should be), then you'll need to pay close attention to affordability when making your decision. Remember, as a general rule, you can typically withdraw around 4% of your savings per year without running the risk of depleting your nest egg prematurely. If you're planning to retire soon, take a look at your balance and see what that 4%, plus Social Security and other sources of income you'll have access to, will provide. From there, you can research your options countrywide and see what sort of lifestyle your income will buy you.

That said, if you've saved nicely and have some breathing room, you should feel free to focus on other factors that will make for a more pleasant retirement on a whole. Take climate, for instance. You might think you're used to cold winters or scorching summers, but as you age, your tolerance for temperature extremes might start to wane. 

Similarly, think about how you're planning to get around town, keeping in mind that as you get older, the idea of driving may not hold much appeal. If you move someplace with solid public transportation and infrastructure, you might fare better than if you were to relocate to a more remote corner of the country.

Finally, keep in mind that you don't necessarily need to land on a single state. The beauty of being retired is the flexibility to spend your winters in one place and your summers in another, so if your savings allow for that leeway, you might really end up getting the best of multiple worlds.

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