The Best And Worst States For Retirement 2022

best and worst states to retire
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Are you planning for your golden years? It is necessary to include where to live. That’s because there are best and worst states to retire.

Asides from this, there are a number of factors that may influence the decision on where to live. This may include proximity to family and friends, access to good health care systems, and the standard of living which will determine the number of years your money can carry you.

Stay with us as we examine both the best and worst states to retire in 2022.

What were our considerations?

In this article that teaches the best and worst states to retire in 2022, we considered some crucial factors.

For each of the locations, you’ll see briefly, we considered: affordability, wellness, culture, weather, and crime, with the biggest emphasis on affordability and wellness.

Then the culture of the state made up the last most notable factor that we considered.

Check out the top 10 best states to retire in the U.S. below:

How Much Should I Save for Retirement?

Here are some tips that can help you figure out how much to save for retirement.

As a general rule, aim to save at least 15% of your pre-tax income each year. For instance, assuming you save for retirement from age 25 to age 67, you will have a substantial amount for the golden years.

In addition, your perceived lifestyle should be a pointer to the amount you can save. A flamboyant lifestyle demands that you save more to sustain it upon retirement, and the choice of location.

Lastly, Fidelity’s rule of thumb says: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67.

Read: How To Apply For A New Social Security Card

What Are The best states to retire in 2022?

According to Bankrate’s study, the best state to retire in the US is Georgia. This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. On the other hand, Maryland is way below the cadre of ranking. This is a result of a lack of affordability and poor scores on culture and weather.

Best States to Retire in 2022

Without further ado, let’s get right into it. The best states to retire in 2022 are;

1 Georgia

For Georgia, affordability is one of its greatest selling points. This is the main reason you should pull a moving van off Interstate 75 and unpack in Georgia.

The state combines a low cost of living and a light tax burden to rank No. 3 in affordability.

Weather is another strong point. The state has an average annual temperature of 64 degrees, the fifth-warmest in the nation. Earthquakes are rare, and tornado risk is about average. However, one downside is hurricanes. Georgia’s small coastline puts it at risk of tropical cyclones.

Georgia scores averagely, well in the middle of the pack places in the middle of the pack for wellness and crime.

Conversely, the state’s only weak spot is in the culture. For instance, Peach State has one of the nation’s lowest percentages of over-65 residents. As a result, it ranks near the bottom in arts and entertainment.

Summarily, the best state to retire in 2022 is Georgia.

  • Affordability rank: 3
  • Wellness rank: 32
  • Culture rank: 41.

2 Florida

Welcome to the Sunshine State, a haven and best state to retire in 2022.

If you like a warm climate, Florida has the second-hottest temperature, right behind Hawaii. However, the high incidence of hurricanes and tornadoes hurts Florida’s weather ranking.

The state also scores well on culture.

Typically, if you’re looking for retirement-age friends, you’ll have a good shot at finding them in this state. That’s because 21% of the population is 65 years and older. According to Census data, Florida is the second-largest share of 65+ folks of any state.

  • Affordability rank: 14
  • Wellness rank: 24
  • Culture rank: 15

 3 Tennessee

Thanks to the combination of below-average living costs and small local and state tax burdens, Tennessee ranks No. 1 in affordability. It is one of the best states to retire in 2022.

Also, the weather is near the head of the class but its rankings in crime and wellness drag down its overall score.

  • Affordability rank: 1
  • Wellness rank: 42
  • Culture rank: 29

4 Missouri

Fourth-place in the ranking of the best states to retire in 2022 is Missouri. It is affordable and has a comparatively moderate climate. However, its culture, crime, and wellness scores are below par.

  • Affordability rank: 3
  • Wellness rank: 34
  • Culture rank: 34

5 Massachusetts

Trust me this city Northeast is expensive. You’ll think nobody retires here, right?

Although Massachusetts ranks poorly in affordability, it ranks pretty well in wellness which is another important category.

  • Affordability rank: 42
  • Wellness rank: 1
  • Culture rank: 12

6. Wyoming

This is another best state to retire in 2022. Check out the stats that got it on this list.

  • Affordability rank: 17
  • Wellness rank: 28
  • Culture rank: 10

7. Arizona

This is the 7th best state to retire in 2022. It’s ranking for affordability is fair while that is low for culture.

  • Affordability rank: 16
  • Wellness rank: 27
  • Culture rank: 40

8. Ohio

Ohio is another best state to retire. Personally, I thought this state will be up on the radar because of its many good qualities.

See the stat below that brought it down the list.

  • Affordability rank: 19
  • Wellness rank: 31
  • Culture rank: 32

9. Indiana

Indiana ranks high for affordability but poorly for wellness and culture making it the 9th best US state to retire in.

  • Affordability rank: 7
  • Wellness rank: 41
  • Culture rank: 45

10. Kentucky

This is the last of the best states to retire in 2022.

  • Affordability rank: 14
  • Wellness rank: 46
  • Culture rank: 47

Worst States to Retire in 2022

Earlier we discussed the best states to retire in 2022, here are the five worst states to retire.

5. California

California has incredible weather, vibrant city life, beaches, parks and mountains, and excellent health care. With this detail, you may wish to spend your golden age here. There is a shocker for you, brace up for it.

California is the second most expensive place to live in the U.S., only more expensive than Hawaii.

California fully taxes many retirement incomes at one of the highest state income tax rates. They also have an exceedingly high sales tax.

Independent housing and senior care facilities are very pricey. California is one of the most disaster-prone states and the wildfires can threaten your home. There are also volcanoes and tsunamis. Therefore, homeowner’s insurance is a must.

Read: 10 Cheap Ways To Make Money In Retirement | 2021

4. Oregon

Truthfully, Americans have been flooding. Maybe because of the Majestic Mountain, dense forest, and breweries. This may also be as a result of the lucrative tech jobs but this has skyrocketed the cost of living to the point that only Alaska, California, and Hawaii are more expensive with senior living facilities as well.

Oregon offers some tax credits for seniors and also pays the highest state tax rates on retirement income.

3. New York

New York remains infamously unaffordable, with high taxes and a competitive housing market in many cities, especially the Big Apple.

It is time to wake up if you have ever dreamed of spending your age watching Broadway shows.

Actually, the theaters and nightlife are useless if you become broke after paying rent and there’s no money to take advantage of any of them.

Health care accessibility and costs are outrageous, and it has one of the highest cancer rates in the nation.

2. Illinois

Illinois is the worst state to be a taxpayer in with a typical household paying almost 40% more in state and local taxes than the national average. Its taxes remain the No. 1 complaint.

Although Illinois leaves out most forms of retirement income, the taxman will claim his due elsewhere. Expect to pay close to $5,000 in property tax on an average home, according to retirement living.

Additionally, sales and gas taxes are just as painful.

Here is an advice, make sure to check whether you’re eligible for tax-relief programs for seniors.

1. New Mexico

This Land of Enchantment holds no allure for retirees, condemning it to the very bottom of the list.

In New Mexico, Social Security, retirement account distributions, and pension payouts all get taxed.

Lower-income seniors can catch a break, sales taxes are also above average.

This is one of the worst states to retire because of its property crime problem and the difficulty of accessing quality health care. This is made worse by a poverty rate of 18%.

Nursing homes and memory care services are unreasonably expensive.

The altitude and dry air can be challenging for people.

Read: How To Retire At 50 As A Millionaire! Retirement Dreams

Conclusion

The retirement stage is an important one and care plans have to be put in place to make the golden years bliss after all the stress.

Check through this article and learn the best states for retirement in 2022 as well as the worst states.

To recap, the best states to retire include Georgia, Florida, Tennessee, Missouri, and Massachusetts.

We hope you enjoyed the read? Get back to us in the comment section.

FAQs

What were our considerations in choosing the best and worst states to retire in 2022?

In this article that teaches the best and worst states to retire in 2022, we considered some crucial factors.
For each of the locations, you’ll see briefly, we considered: affordability, wellness, culture, weather, and crime, with the biggest emphasis on affordability and wellness.
Then the culture of the state made up the last most notable factor that we considered.

How much should you have saved for retirement by age?

Fidelity’s rule of thumb: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement.

What are the best state to retire in 2022?

The 10 best states to retire in 2022 include;
Georgia
Florida
Tennessee
Missouri
Massachusetts
Wyoming
Arizona
Ohio
Indiana
Kentucky

What are the worst states to retire in 2022?

New Mexico
Illinois
New York
Oregon
California

References

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