Is this the year you hope to retire? If you are scouting out a new place to spend your golden years there’s much to choose from. Previously Bankrate.com did a list of the 10 best states for retirees. Now they’ve gone to the other end of the scale, and rated the 10 states retirees might want to avoid. The ratings were based mostly on factors important to seniors, like temperature, crime rate, cost of living, and the tax bite. Starting with the least of the worst, here is #10, Delaware.
10. Delaware has a lot to offer, with beaches, natural beauty, hiking trails, and with no sales tax on consumers, good shopping. That’s the upside.
Here’s the downside.
- The cost of living is higher than average, says the Council for Community and Economic
Research.- The crime rate is among the highest, says FBI’s 2011 Uniform Crime Report, with a high
number of violent crimes for the population.- Access to medical care is below average, low number of beds for the population.
9. Minnesota has a low crime rate, well below average, and good access to medical care. However:
- The cost of living is high.
- It’s one of the coldest states in the nation.
- The state and local tax equal roughly 10.8%, says the Tax Foundation. This includes sales tax, property tax, and other. Combined, they equal the seventh highest taxing state in America.
8 and 7. Maryland and Vermont: These two tied in the bankrate.com rating. Upsides, Maryland crab cakes are to die for, and Vermont boasts rolling blue-green hills.
- The cost of living is pretty high in both, as are the tax pictures (state and local).
- Maryland has a crime rate worse than the national average.
- Vermont’s weather can make a retiree squirm. Temperatures have averaged 43.1 degrees from 1981 to 2010. In other words… it’s one of the coldest states in the nation.
6. Maine is the Pine Tree State. It has a mild crime rate and excellent access to health care. But…
- It’s c-c-c-cold, with average temps of 41.4 degrees for the last 30 years. It comes in third as the coldest state in the U.S., with only Alaska and North Dakota ranking as colder. Maine also has a high cost of living and the state and local tax are among the nation’s highest.
5. Wisconsin – the Badger State— is a haven for fisherman and has a low crime rate. It’s also known for football, dairy farms, outdoor beauty, and breweries and is the home of the country’s largest Polish festival in June. However if you retire there, watch out. The temps are low and the taxes are high.
- Wisconsin’s average annual temperature is 43.7 degrees. Brrrr!
- State and local taxes are 11.1 percent.
- And the cost of living is above average.
4. California is known as the Golden State. It has beaches, vineyards, forests, and lots of sunshine. And if you live in the southern end of the state, you can easily take the grandkids to Disneyland. Then again, as Bankrate.com put it, “The knock on California is that it’s become a little like a menu at a fancy restaurant. Everything costs more.”
- The cost of living is among the highest in the nation.
- The state tax rate is now the nation’s highest, at 13.3 percent. The Tax Foundation estimates that even for those in lower tax brackets, residents can expect to pay about 11.2 percent of their incomes in states and local tax (income, sales, property, and other taxes).
- California is notorious for being unfriendly to businesses, so if you hope to turn a hobby into a little post-retirement business, expect to jump high hurdles that constantly get higher.
3. Washington, the Evergreen State, is gorgeous with its natural beauty. It also has no personal income tax.
- Still, don’t mistake the no-personal- income tax for a low tax burden. The state and local tax burden, according to the Tax Foundation costs residents about 9.3 percent of income (sales, property and other taxes).
- The cost of living and the crime rate are both higher than the average for the nation.
- The average annual temperature is 48.7 chilly degrees (measured over a 30-year period), making it one of the nation’s colder states.
2. The Last Frontier State, Alaska has unsurpassed beauty, no personal income tax or sales tax, and levies the lowest overall tax burden on residents, at 7 percent. Bankrate.com calls Alaska a land of extremes… on one end, the low tax burden, on the other the low, low temps.
- Alaska wins as the coldest state in the nation, with an average annual temperature of only 35.9 degrees.
- And… in spite of the low tax burden, the cost of living in Alaska is high, surpassed only by Hawaii.
1. Oregon’s scenery is spectacular, with amazing hiking trails, and abundant recreational opportunities for kayaking and white-water rafting … fun, but maybe not the most suitable for the average retiree. Oregon charges no sales tax, a boon to retirees who love to shop. But, the Beaver State is not inexpensive.
- The cost of living is higher than average.
- The state and local tax burden are also higher than the national average.
- And don’t let the country atmosphere fool you… also topping the national average is the crime rate.
- The average annual temperature is 48.8 degrees (52.8 degrees over a 30 year period).
- Plus, if you aren’t fond of rain you should know, Oregon is known for rain, rain, rain. The actual annual rainfall is about 28 inches (much lower than some states that get more than that in a single month at times). But because the rain is a constant drizzle 10 months out of the year in Oregon, it may feel like the rainiest state in the nation.
What’s the Number One Best State for Retirees?
Again, according to Bankrate.com, that would be Tennessee. With a low cost of living (second only to Oklahoma), and a low state and local tax burden (third lowest in the nation, says the Tax Foundation), it’s easy on the budget. The weather is warmer than average and access to medical care is among the nation’s best. And there are parts of Tennessee that offer beautiful natural scenery and exceptional retirement communities.
However… the crime rate in Tennessee is one of the highest.
Teresa Ambord is a former accountant and Enrolled Agent with the IRS. Now she writes full time from her home, mostly for business, and about family when the inspiration strikes.