The best states for financially sound retirement often lack state income tax and have low overall costs, with Wyoming, Florida, Texas, South Dakota, and New Hampshire frequently topping lists for tax friendliness, though balancing taxes with cost of living, healthcare, and lifestyle is crucial, as states like Arizona, Missouri, and Iowa offer affordability with lower living expenses and solid retiree communities, while Florida's hurricanes and Minnesota's taxes are trade-offs to consider.
South Dakota topped Bankrate's list. Its low taxes, lack of crime and easy access to quality healthcare make it the country's best state for retirees, according to Bankrate's rankings, which equally weighted weather, cost of living, crime, quality of health care, state and local taxes and general well-being.
Safest and most affordable places to retire often feature low crime, low cost of living (especially housing), and good amenities, with the US Midwest dominating recent lists, featuring cities like Columbus, IN; Fort Wayne, IN; Des Moines, IA; and Fargo, ND, while international options like Portugal and Ecuador also rank highly for security and budget. Key factors include low crime rates (violent/property), affordable healthcare, reasonable housing costs (mortgage/rent), and manageable taxes.
This is the second year in a row that New Jersey came in last on the list. Other states at the bottom of the rankings included Massachusetts, New York, Alabama and Mississippi. Massachusetts (No. 50) and New York (No. 49) both incurred high costs of living and high personal income tax burdens.
Average individual retirement income: $60,000/year or $5,000/month. Median individual retirement income: $47,000/year or $3,900/month. Average retirement income for couples: $100,000/year or $8,300/month.
Renting in retirement offers flexibility, less maintenance, and frees up cash for travel/hobbies, while homeownership provides stability, potential equity, tax breaks, and the freedom to renovate for aging in place, but comes with upkeep costs and less mobility. The best choice depends on your financial situation, health, desire for freedom vs. stability, and long-term plans, with renting often favored for lifestyle freedom and buying for long-term financial security if the home is paid off.
Happiest places to retire often balance affordability, healthcare, quality of life, and climate, with top contenders including Florida, Colorado, and Virginia at the state level, and cities like Barnstable, MA, Naples, FL, Ann Arbor, MI, and Midland, MI frequently cited for strong community and well-being. International options like Panama, Portugal, and Costa Rica also rank high for lifestyle and cost, while states like Utah are noted for senior happiness and health access.
No U.S. state offers a complete absence of property tax for all seniors, but many provide significant exemptions, deferrals, or credits, with states like Alaska, Florida, Hawaii, Louisiana, and Washington offering substantial relief, while others like South Dakota allow deferral until sale, and states like Colorado, Texas, and New York offer significant reductions on assessed value for qualifying seniors.
Hawaii is the happiest state in America for the second year in a row. Hawaii landed the top spot on WalletHub's list with an overall score of 65.50. It ranked third for emotional and physical well-being, 16th for work environment and 13th for community and environment.
Nine U.S. states currently have no state income tax on earned income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, though some nuances exist, like Washington's new capital gains tax and New Hampshire's phase-out of its interest/dividend tax. These states often balance their budgets with higher sales, property, or excise taxes.
You can deposit any amount of cash without being automatically flagged if it's under $10,000 in a single transaction, but banks must report deposits of $10,000 or more to the IRS via a Currency Transaction Report (CTR). While large, legitimate deposits are fine, making multiple deposits to stay under $10,000 (structuring) is illegal and triggers Suspicious Activity Reports (SARs), leading to potential account freezes or law enforcement scrutiny, so transparency with your bank is best for large sums.
Overall, the Commonwealth Fund found that Vermont, Utah, and Minnesota were the top three ranked states for Medicare beneficiaries, while Louisiana, Mississippi, and Kentucky were the bottom three.
#1 Illinois. Although Illinois is often thought of as a cultural hotspot, with suburban living and wine trails to enjoy, this state has significant long-term debts, unfunded pension liabilities, and big budget imbalances. These complications make Illinois our pick as the worst state for retirees.