5 US states where retirees thrive and 5 where they don’t

In this climate of uncertainty, a recent study by SellMyTimeshareNow delves into the best and worst states for retirement, offering valuable insights for seniors.

The analysis evaluates crucial economic and social factors - such as average salaries, housing costs, taxes, and healthcare expenses - helping retirees navigate the challenges of finding a stable and affordable place to settle down in their later years.

States where retirement is easiest to achieve

1. Alaska

Alaska ranks as the most retirement-friendly state. It boasts a high average salary of $66,130, allowing residents to save more for retirement. The state has no state income tax, and the average annual tax on a median-value home is relatively low at $3,976. However, extreme temperatures and higher costs for goods due to the state’s remoteness may pose challenges.

2. New York

New York is second on the list, with an average salary of $74,870 - the highest in the nation. This higher income can translate to better retirement savings. While the cost of living is high, especially housing at $10,666 per month, retirees benefit from a lower total crime rate of 1,747.1 incidents per 100,000 people compared to other states.

3. Colorado

Colorado comes in third, offering an average salary of $67,870 and a relatively low total crime rate of 2,999.2 incidents per 100,000 people. The state's natural beauty and recreational opportunities make it attractive for retirees. However, housing costs are on the higher side, with an average of $11,466 per year.

4. Washington

Washington State ranks fourth, with an average salary of $72,350. The state has a moderate total crime rate of 3,029 incidents per 100,000 people and no state income tax, which can be advantageous for retirees. The average annual medical cost is $9,265, slightly below the national average.

5. Oregon

Oregon completes the top five states where retirement is most achievable. With an average salary of $62,680 and a monthly housing cost of $9,319, it offers a balance between income and expenses. The state has a total crime rate of 3,082.2 incidents per 100,000 people and an average annual medical cost of $10,071.

States where retirement is most difficult to achieve

1. Mississippi

Mississippi tops the list as the state where retirement is the most challenging. With an average annual salary of $45,180 - the lowest in the nation - seniors may struggle to save adequately for retirement. The state also has one of the highest total crime rates at 2,602.4 incidents per 100,000 people. Additionally, the average annual medical cost is $9,394, which can strain fixed incomes.

2. Alabama

Alabama ranks closely behind Mississippi. The average salary is $50,620, below the national average, making it harder for residents to amass retirement savings. The state faces a high total crime rate of 3,127.5 per 100,000 people. While housing costs are relatively low at $7,082 per year, medical expenses average $9,280 annually, which can be burdensome for retirees.

3. Idaho

Idaho is third on the list, largely due to a significant increase in house prices, which have risen by 504.78%. This surge makes it difficult for retirees on a fixed income to afford housing. The average monthly housing and utility cost is $8,254, higher than in many other states. Although the crime rate is lower at 1,475.9 incidents per 100,000 people, the average annual medical cost is $8,148.

4. Iowa

Iowa ranks fourth, with a modest average salary of $53,520 and an average annual medical cost of $9,789. Property taxes are among the highest, with residents paying an average of $2,934 annually. The state's house price index has increased by 240.43%, adding to the financial strain for retirees looking to purchase or maintain a home.

5. Arkansas

Arkansas rounds out the top five states where retirement is least achievable. Despite low housing costs averaging $6,670 per month, the state has a high total crime rate of 3,428.5 incidents per 100,000 people. The average salary is $48,570, which is below the national average, and the average annual medical cost is $9,338.

An expert at SellMyTimeshareNow commented on the findings: "Retirement planning involves considering various factors beyond how much a household can save. Cost of living, healthcare expenses, and crime rates significantly impact where retirees choose to settle. States that offer higher average salaries and lower taxes can provide a more comfortable retirement, but it's essential to balance these with living costs and personal preferences."