What do you do with all of your hard-earned money once you hit retirement age? According to a recent study conducted by WalletHub, some states in the U.S. may be more suitable for retirees than others. Where you retire may be the more important question.
The study compared all 50 states and the District of Columbia across 31 different domains in order to determine which states were more “retirable.” The domains were divided into the three main categories: affordability, health-related factors and quality of life. Let’s take a look at the results.
Photo: Flickr/joiseyshowaa
No surprise that Florida was ranked #1 overall. The combination of its ranking at #1 in the affordability category plus it’s #11 ranking in the quality of life category form a combination that is very compatible for retirees. Rounding out the top five were Wyoming (#2), South Dakota (#3), Iowa (#4) and Colorado (#5).
At the bottom of the list, the affordability rankings are what seemed to take these five states down in the rankings. Rhode Island was ranked lowest at #51, and it was also ranked the least affordable place to retire. Also on this end of the list were Alaska (#50), District of Columbia (#49), Connecticut (#48) and Hawaii (#47). District of Columbia also received the lowest ranking in the quality of life category.
Photo: Flickr/401(k) 2012
How did our beloved Texas stack up? Texas received an overall ranking of #18 and was rated as the #3 most affordable state in which to retire. What knocked Texas back in the rankings were its low marks in overall quality of life and health care numbers.
A few other notes of interest for the retiree would be the overall life expectancy for each state and the property crime rate. Hawaii received the #1 overall rating in life expectancy, followed by Minnesota, California, and Connecticut. Mississippi and West Virginia received the lowest overall ratings in life expectancy. Vermont received the best rating for the lowest property crime rate. It was followed by New York and New Jersey in this category. Conversely, the District of Columbia and Hawaii had the highest incidence of property crimes.
So what should you look for in a location as you’re nearing retirement? According to Jim Mitchell, a Professor of Sociology at East Carolina University many retirees overlook the additional costs of moving, “Failure to weigh the pros and cons of staying in their present homes. For many, home equity is a significant asset and the risks and benefit of relinquishing that asset should be considered carefully in light of replacement costs.”
