There is no state income or estate tax. Georgia, Michigan, Ohio and Missouri all made the top five best states for retirement. Home equity line of credit (HELOC) calculator. Indiana. This is a BETA experience. A Division of NBC Universal, Jeffrey Greenberg | Universal Images Group | Getty Images. The Hawkeye State gets major points for health care and cheap housing. Go trekking through the gorgeous Yellowstone and Grand Teton National Parks and dont miss Cheyennes annual Frontier Days Rodeo. Beautiful state parks too. Because of all the tourists there is a lot to do in the summer in terms of restaurants, musical performances, theater and outdoor activities.. Doctors are abundant. Virginia is tax friendly for retirees and offers a wealth of green spaces and beaches whats not to love? Elevation is 60 feet. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. Other pluses include a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. Oregon has no sales tax but makes up for that with an income tax rate that hits 8.75% at just $18,400 of income for joint filers (with Social Security excluded) and tops out at 9.9% for taxable income above $250,000. Bankrate follows a strict editorial policy, On the other hand, Maryland is way below the cadre of ranking. For this study, Bankrate looked at five broad categories: affordability, wellness, culture, weather and crime. With an elevation of 50 feet, the city is very walkable and bikeable. West Virginia has the fewest museums per capita, while Mississippi has the fewest theaters per capita. Taxes This is a big consideration throughout our lives, but when incomes decrease in retirement, it can become a huge factor. Tennessee 7. The state ranks relatively well for health care, but lags behind for its elder abuse protections. The financial site's 2022 Best States to Retire list had a panel of experts score the 50 states on 47 different affordability, quality of life and health care metrics. Heres advice from experts who help retirees and soon-to-be-retired workers through the decision: Laura Kovacs, former director of education at the Scottsdale Area Association of Realtors in Arizona and a recent retiree herself: Spend some time in places where you want to live before you commit to moving there. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. The 10 Best Places to Retire in the U.S . North Dakota 7. To calculate these rankings, we used 13 different metrics across three categories health, housing and quality of life pulled from publicly accessible databases to rank all 50 states. Georgia came out the winner, followed closely by Florida and Tennessee, in a list . It also ranks as No. Daytona Beach, Florida. Southern Oregon University hosts a lifelong learning institute and allows free auditing of college classes. Massachusetts and Maryland are more expensive in these categories, according to the report, while Hawaii and New Mexico are less expensive, with some costs nearly 50% lower. 23. Other popular retirement states. 10. Our methodology: Our editors considered a variety of factors including each state's retirement rankings from WalletHub, MoneyRates and The Motley Fool to create our proprietary index. With frontage on an inlet of Lake Michigan, Traverse City also offers water sports, more than 30 area golf courses and a reputation as a top dining town. There will be a few hot and humid days, but not six months of it as there is down South. Toughest States for Retirees. I lived in downtown Charleston for nine years and enjoyed walking to restaurants, bars, theater, the Spoleto Festival and other parts of Charleston. More: Debt isn't the enemy of a comfortable retirement. BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access. Elevation is 300 feet. Virginia also has some of the best elder abuse protections across the U.S., particularly in terms of total expenditure. Maine's summer is made for retired people. Join here. Kansas received middling scores for affordability and health care but watch out for its higher-than-average crime rates. More: Jump-start your retirement plan. Another: The state has both an inheritance and estate tax and the combined state and county income tax rate tops 8%, although Social Security benefits and $34,300 per person in pension payments and 401(k) withdrawals are exempt. The city is beautiful and great for walking or biking. Our reporters and editors focus on the points consumers care about most how to save for retirement, understanding the types of accounts, how to choose investments and more so you can feel confident when planning for your future. But there is no state income tax on Social Security benefits and no state estate tax. Georgia ranks fifth-warmest state, meaning retirees have more days to enjoy the great outdoors. Nevada. This abandoned high school was converted into a 31-unit apartment building. There is no state income tax, but there is a stiff state estate tax and a high sales tax. At Bankrate we strive to help you make smarter financial decisions. Oregon has no sales tax but makes up for that with an income tax rate that hits 8.75% at just $18,400 of taxable income for a couple (with Social Security excluded). All Rights Reserved. An 85-year Harvard study found the No. The state fully exempts Social Security benefits from being taxed and property taxes are quite low as well. Its interesting to see that low-tax states like South Dakota and Texas dont make the top 10, or even the top 20 states with the most millionaires. California is the worst state for retiring. The lower the score, the higher the state ranks as a retirement destination. By Liz Brumer-Smith - Feb 23, 2022 at 7:00AM Key Points. The highly walkable downtown (elevation: 1,950 feet) is set in a comfortable climate with little snow, good air quality, a low serious crime rate and a high number of doctors per capita. Daytona Beach, FL 4. New Jersey #2. Homebuyers are paying nearly 50% more on their mortgage bill than last year. Weve averaged three recent state rankings to create one master list. The content provided on Moneywise is information to help users become financially literate. But this compensation does not influence the information we publish, or the reviews that you see on this site. It also ranks relatively well for health care and has one of the highest percentages of the population aged 65 and older, according to WalletHub. Some of the street scenes of the homeless can be daunting, but this hilly, scenic city offers much in the way of arts/culture, fine dining (dozens of Michelin-starred restaurants) and outdoor land and water activities. A surprisingly mild climate in Idaho's capital city is conducive to outdoor activities, while Boise State University offers discounted tuition for seniors. We prefer our rural areas to crowded places anyway We live a lifestyle that others may call slow, but we love things such as boating, fishing, hunting, and sitting around a campfire, says resident Audrey Seibel on Quora. The Most Affordable Places to Retire. Cheap gas, amazing meat for amazing prices, plenty of open sky. Michael S. Fischer. The city boasts a high number of physicians per capita, good air quality and high marks for volunteering. Uruguay. In addition to examining the local laws, we considered the percentage of the population over 65, the percentage of the population identified as LGBTQ+, the average home price, and the cost of living to generate a list of states. Here are the 25 worst states to retire in 2022, ranked from bad to worst. To identify the best places to retire, U.S. News analyzed data for the 150 largest metropolitan areas in the U.S. to assess how well they meet Americans' retirement needs and expectations. Bend is a scenic outdoor playground, 160 miles southeast of Portland. WalletHub published a report on Monday that found the best U.S. states to retire in 2022. Meanwhile, Florida was found to have the highest percentage of the population age 65 and older, while Utah was found to have the lowest. Other pluses include good air quality, a low serious crime rate and a high number of doctors per capita. The Buckeye State offers a low cost of living and a multitude of recreational opportunities take the Cuyahoga Valley National Park, for example, with its lush waterfalls and trails. In fact, the two top states in WalletHub's rankings, Florida and Virginia, are both among the 10 most affordable states in the U.S. The scenic area has extensive parks and waterways conducive to hiking, fishing and boating, plus 21 golf courses. Tallahassee, Florida, is pictured. There is also a state estate tax. The city is both highly walkable and bikeable and gets high marks for volunteering. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. The state includes plenty of recreational opportunities for seniors, according to resident Torrey Stephen Whitman on Quora. Midwestern states scored well in our ranking for affordability, healthcare, and safety, leading to. Alaska, on the other hand, held last place in our ranking. "Nevada is a tax-friendly state, making it ideal for many retirees. Minnesota Best State vs. Austin is very bikeable and somewhat walkable. There is no state estate tax. I have one client whos 83 [years old] who didnt want to live in an active adult community because she had pre-determined that it would be filled with old people. I googled this and got a completely different list for 2022: Florida North Carolina Michigan Arizona Georgia Pennsylvania Washington Indiana Texas Virginia . Our goal is to give you the best advice to help you make smart personal finance decisions. Not to mention it's more of a suburban-based state. With 120 nearby wineries, this quaint rural town 260 miles southeast of Seattle, boasts a surprisingly robust fine dining scene. Debt isn't the enemy of a comfortable retirement, How to get your retirement plan back on track, Bolster your retirement portfolio with farmland, 17 million Americans are missing out on free money. I have a 2,400-square-foot, four-bedroom, three-bathroom, all-brick house sitting on 1.25 acres. Georgia is ranked high for being tax-friendly to retirees. Worst State: 2x Difference West Virginia vs. Minnesota Information and timely news from our team of trusted money specialists. Alabama T-3. If youre looking for retirement-age friends, youll have a good chance of finding them in this state where 21 percent of the population is age 65 and older. Retirees may want to take a gamble on living in Nevada. If you retired in 2022 or are going to retire in 2023, find details below on which state you may consider retiring in if your main source of income is from Social Security retirement, . A confusing state income tax structure tops out at 4.5% on high earners but is scheduled to drop to 2.5% in future years. South Carolina 5. Surrounded by water, most notably the Chesapeake Bay, this quaint state capital 30 miles east of Washington, D.C., is a mecca for sailors, powerboaters, kayakers and fishermen, with about a dozen boating schools and a generally comfortable climate. There is a high ratio of doctors per capita, good air quality and a low serious crime rate. According to a 2021 report from the Health Policy Institute of Ohio, the state tanks for population health (which includes metrics like adult smoking and heart disease mortality), health care spending and prevention. We also used NOAA data for tornado strikes and hurricane landfalls, along with earthquake reports from the U.S. Geological Survey.We calculated crime using the rates of property crimes and violent crimes per 100,000 inhabitants for each state from the FBIs 2019 Crime in the United States report. Lancaster, PA 6. But a lot of areas are definitely living at a slow pace, writes APtop2015 on Reddit. Another negative: The serious crime rate is above the national average. Missouri ranks below average for health care and crime, but its quite affordable to live in, thanks to cheap housing costs. Plenty of golf courses, if that's for you. We do take into account a variety of quality-of-life metrics, ranging from air quality and availability of doctors to the crime rate and a towns walkability. Connect with a financial planner today. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Housing costs are on the cheaper end as well. Check out what's clicking on FoxBusiness.com. Our choices span all four continental time zones and 16 states. Theres a plethora of outdoor water and land activities, including dozens of nearby golf courses. Those are deeply personal questions. The Best States to Retire 1. Money concerns play a big factor in those low rankings, with New York ranking as the least affordable state and New Jersey following right behind, whereas Mississippi ranks at the bottom in terms of the quality of life, according to WalletHub. PA is a fine place for birding Hawk Mountain for raptors, and Middle Creek Refuge for geese saw 20,000 snow geese there last February. The 10 Bestand Most AffordablePlaces To Retire in America, 2022 Edition. Elevation is 1,400 feet and air quality is good. Flagstaff has a relatively high (but not very high) risk of natural hazards, according to FEMA. FEMA rates Portland as having a relatively low natural hazard risk. Related: 12 Best U.S. Cities for Retirement: 2022. . Elevation is 3 feet. One downside: a serious crime rate above the national average. And when youve retired, maybe try renting for a while before you commit to buying., Clark Kendall, CFP, CFA, is president of Kendall Capital Management in Rockville, Maryland, and author of Middle-Class Millionaire: Family is the biggest consideration. The worst state in the U.S. for retirement is New Jersey, followed by Mississippi and New York, based on WalletHub's findings. On Monday, WalletHub published a report that found the best U.S. states to retire in in 2022. More: Is borrowing from a 401(k) a bad idea? We placed the heaviest weighting on affordability. this post may contain references to products from our partners. While some scenic destinations top the list, like sunny Florida and mountainous Colorado, the bottom of the list features two of the most populated states in the northeast. 5 of the best states to retire in. Bankrate follows a strict Elevation of 2,100 feet makes most summers non-sweltering. A new list came out last week from bankrate.com, and it immediately got a lot of attention.While their list isn't bad, it really misses the most important thing - lists like this don't make sense because they don't take into account that everyone's retirement . The state is made almost entirely from limestonea sedimentary rock that is not gold-bearing! All Rights Reserved. Boulder has a favorable relatively low risk for natural hazards. That means high living costs or taxes arent in themselves disqualifiersthough notably, more than a fourth of our picks have housing costs near or below the current national median of $404,000. Hilton Head has good air quality, an adequate number of physicians and a low serious crime rate. According to Bankrates study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. Florida #2. Temperatures can plummet to an average low of 2 degrees Fahrenheit in Glasgow and 22 degrees Fahrenheit in Flathead Lake in the month of January, according to climate and forecast site Weather Atlas. Youll require a large nest egg to retire in Americas tiniest state it isnt particularly tax friendly for retirees and housing is expensive but it might be well worth the costs. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Thats why a number of otherwise appealing choices, including New York City, didnt make the cut. Alaska, on the other hand, held last place in our ranking. Michigan took the No. Wisconsin offers cheaper housing costs and a relatively low crime rate. Portugal has become one of the most popular retirement destinations in recent years for Europeans and others from around the world. Plus, the state wont tax your Social Security benefits and provides a tidy deduction for those who depend on other forms of retirement income as well. Its ideal for someone living on a fixed income, since theres no state income tax or estate and inheritance taxes. Wyoming might be Americas most sparsely populated state, but it could be ideal for a retiree trying to escape the bustle of big cities and seeking adventure in the outdoors. However, Hawaii was found to have the highest life expectancy, while West Virginia was found to have the lowest. But under the care of a pro, the . Just be prepared for cold, snowy winters. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey. The Keystone State ranks lower than average for affordability it wont tax your Social Security or retirement accounts, but you will contend with high gas and property taxes. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Get personalized advice from a financial advisor that understands your needs. Florida is runner-up for the best states to retire in this year, thanks to its golden sunshine, gorgeous beaches, low taxes and large retirement communities. The states cost of living has been rising, although the tax burden remains light. Move over, Florida. The Bankrate survey analyzed all 50 states for affordability, based on the cost of living index and the effective tax rate. The Most Tax-Friendly States to Retire originally appeared on usnews.com. Other downsides: San Franciscos serious crime rate is higher than the national average and it has a relatively high (but not very high) natural hazard risk, according to FEMA. Led by famous century-old Pinehurst Resort, some 40 golf courses plus golf schools surround this idyllic village with a temperate climate, 90 miles east of Charlotte. At an elevation of 40 feet, Annapolis is also a somewhat walkable and very bikeable town with good air quality, and a surprisingly low natural hazards risk. Up Next. The median home value in the state is a meager $127,000, according to Zillow. Plenty of farms also, although they are increasingly larger and larger and run by fewer and fewer people, writes noshelter on Reddit. Our methodology: Our editors considered a variety of factors including each state's retirement rankings from WalletHub, MoneyRates and The Motley Fool to create our proprietary index. Forbes says the city of Fargo has appeared on its Best Places to Retire list for 10 years in a row due to its cost of living, doctors per capita and walkability. Mountains and water, including 25-mile-long Lake Coeur dAlene, make this city 300 miles east of Seattle a hot spot for fishing, boating, swimming, hiking and skiing. Diversity scores used the Census racial and ethnic diversity index and LGBTQ population densities compiled by the Movement Advancement Project. More: How to get your retirement plan back on track. Of the 12 states that do tax social security income, many of them include some provisions for excluding a portion of the social security income. To see the overall ranking, here are the best states to retire in this year, according to WalletHub. Sarasota, Florida. There's no better time to retire than 2022 when life expectancy is at its all-time high of 79.05 years.However, choosing the best states to retire from a list of 50 is no easy feat. Georgia #3. I semi-retired in Charleston five years ago after working full-time here since 2011. To find some objective answers to the where-to-retire question, Bankrate crunched a bevy of statistics on costs of living, public health and other metrics. Top criteria include the happiness of local residents, housing affordability, tax rates and health care quality. En espaol | Choosing where to live after retirement is a huge decision and a very personal one. Virginia #4. Seattle has a relatively high (but not very high) natural hazard risk. Plenty of parks and outdoors areas offer hundreds of miles of trails for hiking and biking. 3. who ensure everything we publish is objective, accurate and trustworthy. When delaying your RMDs might not be the best idea . Delaware also has a major perk of being close to Washington, D.C. so you can have a calm weekend or a rocking one out on the town. The town is bikeable but not all that walkable and has a low natural hazard risk. Idahos considered one of the safest states to live in, thanks to its low crime rate, and has one of the lowest average monthly health insurance premiums in the country, according to WalletHub. When youre considering a community, you have to think about what you still want to do. Florida really may be the best state to retire in, according to a new report. Our editorial team does not receive direct compensation from our advertisers.