But recent trends may help point you in. FEMA ranks Boise relatively low in natural hazard risk. Heres what to do if you didnt get one, The worlds 10 richest people have all lost money since 2022 started except for Warren Buffett, Heres how much money Americans are aiming to save in 2022, Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. Florida named the best state to retire in 2022, study says by: Caleb Wethington, Nexstar Media Wire Posted: Sep 5, 2022 / 06:23 AM EDT Updated: Sep 5, 2022 / 07:11 AM EDT DALLAS ( KDAF). Do these seven things now, Why Florida is Bankrates best state for retirement in 2022, The best and worst states for driving: All 50 states, ranked, Why Georgia is Bankrates best state for retirement in 2021, One of the least populated states should be Americas hottest retirement destination heres why, California Consumer Financial Privacy Notice. Special mentions go to Delaware, Virginia, and Washington, which were all in the top 20 on both lists. Naples has good weather and air quality, an adequate number of physicians per capita and a very low serious crime rate. Plus, the state wont tax your Social Security benefits and provides a tidy deduction for those who depend on other forms of retirement income as well. What are index funds and how do they work? Look at how youre going to spend your money, too. What drew them to Ashland was the Oregon Shakespeare Festival, which stages nine months a year of productions ranging from the Tempest to modern musicals and is located just 300 yards from their home. Arizona Honorable Mention: South Carolina 5 Worst States For Retirement #1. Alaska did rank first in one subcategory its residents bear the nations lowest tax burden. The state ranks relatively well for quality of life and WalletHub reports that it has one of the lowest numbers of elder abuse complaints in the nation. This haven for foodies has a big arts/culture scene, more than 60 area golf courses, lots of other outdoors activities, a culture of volunteering and free senior citizen auditing of classes at Portland State University. It only takes 3 minutes to connect with an advisor who puts you first. Montana 8.. For weather scores, we relied on three decades of average daily temperature data from the National Oceanic and Atmospheric Administration. More: How to get your retirement plan back on track. You can live close enough to a city that you're just 20 minutes away from doing whatever, but have the benefit of sparse enough homes that you're not living on top of each other. 3. Missouri ranks below average for health care and crime, but its quite affordable to live in, thanks to cheap housing costs. If you love the outdoors, you can settle down by the sea and take part in sailing, surfing and fishing Rhode Islands coastline stretches for 400 miles. Nothing too crazy to worry about like earthquakes or hurricanes or dangerous wildlife, says DChristy87 on Reddit. Bend is a scenic outdoor playground, 160 miles southeast of Portland. We adhere to strict standards of editorial integrity to help you make decisions with confidence. Overall it is a nice place to live, with mostly small cities and towns that offer low cost of living, low crime, friendly genuine people, and outdoor recreation that varies depending on which part of the state you are located, writes Jennifer West on Quora. I don't want to go to any state with excessive bugs or . Daytona Beach, FL 4. Iowa is the best state overall for retiring. Heres the thing: Retiring in Connecticut will cost you an arm and a leg but if you have the funds tucked away, youll enjoy excellent health care and low crime rates. However, property and sales taxes tend to be higher than average. To identify the most retirement-friendly states, WalletHub researchers compared the 50 states across the key dimensions of affordability, quality of life and health care. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. There is no state income tax on Social Security benefits or a portion of pension income, and no state estate tax. 2023 Bankrate, LLC. Thousands benefit from our email every week. I paid $189,000 under a USDA loan. But recent trends may help point you in the right direction. Melbourne, FL 5. Social Security benefits dont get taxed and seniors can claim a deduction of up to $12,000 a year against their other retirement income. There are several compelling reasons to make a long distance move in retirement: to be closer to family, to cut costs, to enjoy better weather. Of the 12 states that do tax social security income, many of them include some provisions for excluding a portion of the social security income. Tennessee 7. Nestled on Floridas Gulf Coast along Tampa Bay, this port city has a big restaurant scene, lots of water activities and 80 golf courses in the area. Considering a retirement move? Arizona 3. Norfolk is up-and-coming with some amazing bars, and VB has the Oceanfront, which is a lot of fun day or night, says AquaKong35 on Reddit. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. For this study, Bankrate looked at five broad categories: affordability, wellness, culture, weather and crime. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Tampa, Florida. It also ranks relatively well for health care and has one of the highest percentages of the population aged 65 and older, according to WalletHub. Other times, they want to be closer to family. editorial integrity, We have a ton of coastline and incredible seafood you'd pay a premium for right outside, you just have to dig it up! Melbourne, Florida. Our methodology: Our editors considered a variety of factors including each state's retirement rankings from WalletHub, MoneyRates and The Motley Fool to create our proprietary index. 2023 FOX News Network, LLC. Nearby beaches, fishing, boating, classy restaurants, a big arts/cultural scene and 30 golf courses dominate the appeal of this Gulf Coast city 60 miles south of Tampa. There is no state estate tax. We do take into account a variety of quality-of-life metrics, ranging from air quality and availability of doctors to the crime rate and a towns walkability. This scenic city in the Pacific Northwest wedged between Puget Sound and Lake Washington offers a vibrant arts/culture scene, famous restaurants, and an Osher Lifelong Learning Institute at the University of Washington. Elevation of 2,100 feet makes most summers non-sweltering. Social Security benefits are exempt and theres no state estate tax. Plenty of farms also, although they are increasingly larger and larger and run by fewer and fewer people, writes noshelter on Reddit. Asheville is at moderate risk for natural hazards. Distilleries and breweries are good too if you like to drink! writes Redditor BlackRoseRedApple. Missouri #8. Indiana. Not everyone can afford to live on fixed incomes as prices rise. Do these seven things now. There is a high ratio of doctors per capita, good air quality and a low serious crime rate. The city is extremely walkable and famously bikeable. (Because the FBI significantly changed the reporting format for 2020 data, we did not rely on those statistics. Extensive outdoor activities include hiking, climbing, biking and fishing. Its kind of a mix of small town/big town. There are above-average doctors per capita and good air quality. Another downside: Serious crime is above the national average. New Jersey #2. Our methodology: Our editors considered a variety of factors including each state's retirement rankings from WalletHub, MoneyRates and The Motley Fool to create our proprietary index. West Virginia. Florida was at the top of the list. See the gallery for the 15 best states for retirement, according to WalletHub. There are plenty of activities to keep you busy, from golfing and fishing to visiting the many theme parks. They've built it up over the course of a few generations since air conditioning became a thing. Georgia ranks fifth-warmest state, meaning retirees have more days to enjoy the great outdoors. Get advice on your investment portfolio from a certified professional through Datalign. Tennessee #9. Elevation is 150 feet. The Ocean State ranks relatively well for its quality of life and health care and WalletHub reports that it has the second highest total expenditures on elder abuse prevention. Theres no state income tax on Social Security earnings, but there is a state estate tax. Retirees may want to take a gamble on living in Nevada. Plus they have a favorable income tax rate. By comparison, the 2024 leave year won't begin for most employees until Sunday, Jan. 14, 2024 and the 2025 leave . The serious crime rate is above the national average. FEMA rates Coeur dAlene as at a very low risk for natural hazards. Pittsfield, Massachusetts CITY POPULATION: 43,927 SHARE OF POPULATION 65+: 20.2% COST OF LIVING FOR RETIREES: 10% above the national average AVERAGE INCOME FOR POPULATION 65+: $56,620 While health care is quite costly, WalletHub ranks Connecticut highly for its access and outcomes the state has one of the largest numbers of physicians per capita and the third lowest heart disease rates in the country. Midwestern and Northeastern states top the list, while some warmer states that might seem appealing for retirement, such as Hawaii and California, rank lower. To calculate these rankings, we used 13 different metrics across three categories health, housing and quality of life pulled from publicly accessible databases to rank all 50 states. Some say the grass really is greener in the Bluegrass State which offers plenty of perks aside from horses and fine bourbon. Boulder itself is very walkable and bikeable with a low serious crime rate, good air quality and abundant doctors. Colorado #5. Whats vitally important for people in that age group are medical care, access to shopping and public transportation. who ensure everything we publish is objective, accurate and trustworthy. The Kansas Bureau of Investigation says there were almost 73,500 property crimes reported in the state in 2020, and violent crime reports increased by 9.3% from the previous year. One downside: Charleston has a relatively high (but not very high) risk rating for natural hazards from FEMA. It ranks slightly higher than average for its quality of life and crime rates, and WalletHub says it has one of the lowest complaints of elder abuse in the country. Theres a wide variety of outdoor activities available on water and on land, including some 54 area golf courses. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Drive 45 minutes and youll have something completely different, writes Boise resident Matt Roderick on Quora. Sarasota, FL 2. Social Security doesnt get taxed in the state, but other forms of retirement income can get taxed at rates as high as 7.15%, says SmartAsset. Flagstaff has a relatively high (but not very high) risk of natural hazards, according to FEMA. Our methodology: We combined each state's retirement rankings from WalletHub, MoneyRates and The Motley Fool to create . We placed the heaviest weighting on affordability. 10 Tax Breaks for People Over 50. Florida. Arkansas Highest T-45. According to Bankrates study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. Pennsylvania3rd best state to retire in Also, ranking high on our list is Pennsylvania. Even though Texas and Florida have no income tax, they do have higher homeowners insurance costs because of hurricanes. The city is pretty walkable and bikeable. Alaska, on the other hand, held last place in our. Idaho Idaho solidifies its ranking as a top retirement state by offering many tax breaks for seniors. The College of Charleston exempts senior citizens from tuition. Other pluses include good air quality, a low serious crime rate and a high number of doctors per capita. CT has a lot of woods and nice parks, plus cool downtown areas like Putnam, West Hartford, Storrs Center, and it's day trip central: Boston, New York, the Berkshires, the beach, etc., says ravensfell on Reddit. I semi-retired in Charleston five years ago after working full-time here since 2011. The 10 Bestand Most AffordablePlaces To Retire in America, 2022 Edition. Housing costs are on the cheaper end as well. Best State vs. The city is somewhat bikeable, although not all that walkable. Elevation is 50 feet. Florida 2. The Beehive States sweet spot lies in its moderate weather, low property and sales taxes and abundance of outdoor activities. The top state for retirement this year leads in affordability and quality of life but lags when it comes to healthcare, according to one new ranking. The content provided on MoneyWise is information to help users become financially literate. Sponsored: Add $1.7 million to your retirement. Florida came in first in the overall ranking. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. The state income tax rate is a flat 4.99% for 2022, but Social Security income is exempt and theres no state estate tax. Powered and implemented byFactSet Digital Solutions. The whole place was practically built for snowbirds and retirees, says bicyclemom on Reddit. Up Next. The Show Me State doesnt exactly brag about its potential as a retirement destination, but it has its appeal for someone on a fixed income whos looking for a place with a low cost of living. Alaska, on the other hand, held last place in our ranking. Check out WalletHub's 10 best states for retirement to get the most out of your golden years: 1. The worst state in the U.S. for retirement is New Jersey, followed by Mississippi and New York, based on WalletHub's findings. Decide whats truly worth it while picking out a place for your golden years. WalletHub also considers it the best state for elder abuse protection, especially for its protection funding and eldercare organizations and services. I retired to Madison and think it's perfect easy to get to outdoor activities, but also lots of activities all year long within the city, from fitness classes to pickleball to pools to art classes, live music, great restaurants, libraries, and shopping. Should you settle down by the beach or in the mountains? In its own world 30 miles northwest of Denver, Boulder is the center of a large recreational open space abutting the Rockies at an elevation of 5,400 feet. While property taxes are relatively high, the median home value is just around $180,000, according to Zillow. in Brattleboro, Marys at the Inn at Baldwin Creek in Bristol, The New American Grill in Londonderry. Elevation is 7,200 feet. There is no state income tax and no state estate tax. All forms of retirement income get taxed in the Nutmeg State, but some seniors could be exempt from paying taxes on their Social Security. New Hampshire boasts picturesque towns, mountains and trails perfect for an outdoorsy retiree who prefers a quieter kind of life. The Peace Garden State has one of the highest numbers of hospital beds per capita and plenty of eldercare organizations and services available to the public, according to WalletHub. 40. See all Retirement articles Farmland is a highly intriguing choice for long-term investors. Bankrates editorial team writes on behalf of YOU the reader. A confusing state income tax structure tops out at 4.5% on high earners but is scheduled to drop to 2.5% in future years. Surrounded by water, most notably the Chesapeake Bay, this quaint state capital 30 miles east of Washington, D.C., is a mecca for sailors, powerboaters, kayakers and fishermen, with about a dozen boating schools and a generally comfortable climate. Water is big in the summer. As with Naples, hurricane exposure is real, but less than some other coastal towns. Youll enjoy low property taxes, no taxes on your Social Security and a sizable deduction on other forms of retirement income. And the worst states to retire in are: Alaska. The scenic city is very walkable and bikeable and has a high ratio of doctors per capita, plus good air quality. Georgia is ranked high for being tax-friendly to retirees. Quaintly historic coastal city offers fine dining, a big arts scene, outdoor water activities and golf (with 39 courses in the area). To identify the best places to retire, U.S. News analyzed data for the 150 largest metropolitan areas in the U.S. to assess how well they meet Americans' retirement needs and expectations. The states cost of living has been rising, although the tax burden remains light. For me, I enjoy the outdoors and am heavily involved in equestrian things so the low price for land is perfect. Home equity line of credit (HELOC) calculator. Get matched with a financial advisor today at Datalign and get on the path to financial success. The city is very walkable and bikeable. Reminder: You still have time to add to your IRA for 2022 . Best States to Retire in 2022 Arizona No matter where in Arizona you choose to retire, you will be within a few hours of major historic sites, stunning National Parks, beautiful golf courses, and you'll be able to explore them while enjoying the warm desert weather. New Hampshire T-45. 6. Aug 1, 2022. But there is no state income tax on Social Security earnings and theres no state estate tax. The surrounding terrain is suitable for hiking and biking. 23. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. We have culture. !function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script"),d=o[0],r=/^http:/.test(e.location)? Just be prepared for cold, snowy winters. The . Newport and Providence are popular cities in the state and they both have their merits, Newport is awesome if you're rich or love to sail, Providence has lots of art and music and really good food, writes one Redditor. There are five national parks within Utah alone (and another three nearby). Where you decide to . Among its health-related strengths, the state. We acknowledge theres plenty of subjectivity in choosing a place to live in retirement. Nevada. The state ranks relatively well for health care, but lags behind for its elder abuse protections. The winters are rainy but surprisingly temperate given the northern latitude. This material may not be published, broadcast, rewritten, or redistributed. August 18, 2022 / 12:01 AM / MoneyWatch What to do with your 401(k) in bear market Amid recession fears in bear market, experts say 401(k) investors should think long term 04:58 Here's an explanation for how we make money The index measures a variety of factors, including access to health care, access to food, physical health and economic security.Culture scores were calculated using the number of arts, entertainment and recreation establishments per capita and adults 65 and older per capita from the U.S. Census Bureau. Oregon 47. 3. Florida #2. The state income tax rate is a flat 5%. How much should you contribute to your 401(k)? Boston has good air quality and abundant doctors per capita. Property and sales taxes are low, and while youll get taxed on your Social Security or retirement income, you may be able to claim a deduction. Another: A 6.5% state income tax kicks in for couples at just $16,040 of taxable income. 10. Laramie is nice, small and quiet but still large enough to have basic amenities and then some. Go to a variety of different places that you seem to be attracted to places that have a lower cost of living and lower property taxes and test them out for a while. FEMA rates the natural hazard risk in Walla Walla as relatively low. Naples, FL 3. Austin is very bikeable and somewhat walkable. To determine the best states to retire, WalletHub examined a few key factors like affordability, health care . As a resident of Delaware who is looking to retire in five years, I can personally state that I will be retiring in the state of Delaware because it is centrally located between major cities and modes of transportation and the cost of living will work well with our retirement funds, writes Antionette Blake on Quora. A low cost of living is a priority for some, while being close to family takes precedence for others regardless of the cost. Bankrate follows a strict editorial policy, Check out WalletHub's 10 best states for retirement to get the most out of your golden years: Sign up now: Get smarter about your money and career with our weekly newsletter, Don't miss: All $1,400 stimulus checks have been issued. I cover personal finance, taxes, retirement, nonprofits, scandals and other stuff, Best Places To Retire In 2022: Sioux Falls And Other Hot Spots, Why Millennials, Gen X & Retiring Boomers Need To Find Their Happy Place, How To Find The Best Place To Enjoy Your Retirement In 2022. But there's good news: As of early 2022, federally taxed Social Security income is officially deductible for those 65 and older. Nebraska offers a slower pace of living for a retiree whos content to simply sit back and relax plus a few cool geological monuments and parks to check out in your spare time. North Dakota 7. Oregon 9. However, it does have the lowest percentage of the population aged 65 or older in the U.S. and ranks poorly for elder abuse protections. Opinions expressed by Forbes Contributors are their own. This 422-year-old scenic state capital mountain town, 60 miles north of Albuquerque, punches above its population weight. When I see people retire and move to different parts of the country, 70 to 80 percent of the time, its to be close to family. PA is a fine place for birding Hawk Mountain for raptors, and Middle Creek Refuge for geese saw 20,000 snow geese there last February. Kelly Miller, AARP, Updated January 2011 . Check out the Mammoth Cave National Park and go hiking in the Red River Gorge area if youre interested in an outdoor adventure. You wont get taxed on your Social Security benefits, but any retirement income from your pension or other accounts are fair game. I am well aware of what a house/acreage like this would cost in LA or NY.. In addition to examining the local laws, we considered the percentage of the population over 65, the percentage of the population identified as LGBTQ+, the average home price, and the cost of living to generate a list of states. Our editorial team does not receive direct compensation from our advertisers. Interesting Findings. We pay an extra $500 per month. FEMA rates Tampa as having a relatively high (but not very high) natural hazard risk. With a raise next year of 5.9%, Nevada's Social Security recipients will get $1,614.41 per month. South Dakota. Delaware 5. Wisconsin is considered moderately tax friendly for retirees since Social Security is exempt, but any withdrawals from your retirement accounts will get taxed. All Rights Reserved. [Fargo is] a cool place to live if you're into outdoors-related things. The state income tax rate is a flat 4.25%, but it excludes Social Security income and some pension income and theres no state estate tax. Here are the 25 worst states to retire in 2022, ranked from bad to worst. The Sunshine State also has the second-highest percentage of residents 65 years and older, WalletHub says, topped only by Maine. Social Security income is tax-exempt, and most types of retirement income if your 62 or older. All Rights Reserved. Colorado 4. If youre looking for retirement-age friends, youll have a good chance of finding them in this state where 21 percent of the population is age 65 and older. For example, WalletHub ranked Virginia as the best state to retire in its 2023 study, followed by Florida, Colorado, Wyoming, and Delaware. To help Americans find the best cities to spend their golden years, WalletHub compared the retirement-friendliness of 182 cities including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state across four key dimensions: 1) Affordability, 2) Activities, 3) Quality of Life and 4) Health Care. This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. The study examined five categories (weightings in parentheses): affordability (40 percent), wellness (20 percent), culture (15 percent), weather (15 percent) and crime (10 percent).Affordability was calculated using the Cost of Living Index from the Council for Community and Economic Research, published in July 2022, and property and sales tax rates from the Tax Foundations rankings for 2022. According to a 2021 report from the Health Policy Institute of Ohio, the state tanks for population health (which includes metrics like adult smoking and heart disease mortality), health care spending and prevention. Washington. August 31, 2022 There is one list that no state wants to be on - the one that names the worst states for retirement. All of our content is authored by Wyoming might be Americas most sparsely populated state, but it could be ideal for a retiree trying to escape the bustle of big cities and seeking adventure in the outdoors. Oregon has no sales tax but makes up for that with an income tax rate that hits 8.75% at just $18,400 of income for joint filers (with Social Security excluded) and tops out at 9.9% for taxable income above $250,000. The ratio of doctors per capita is high, the air quality is good, and the serious crime rate is very low. A downside: The serious crime rate is above the national average. Theres no estate tax or tax on Social Security benefit, but the state income tax rate is a hefty 8% on taxable income above $96,870 per couple and goes up to 13.3% for the very wealthy. The median home value in the state is a meager $127,000, according to Zillow. Doctors are abundant. More: Debt isn't the enemy of a comfortable retirement. Daytona Beach, Florida. As a result, many retirees are looking for ways to stretch their savings. Do you prefer golf or cross-country skiing? 5 of the best states to retire in. Florida has no state income or estate tax. You may opt-out by. You'll pay no regular or retirement income tax, and Nevada property taxes are low," RetirementLiving.com says. There are adequate physicians per capita and good air quality. Aside from its overall ranking, WalletHub also found how different states ranked within a few of those 47 measurements. Because of all the tourists there is a lot to do in the summer in terms of restaurants, musical performances, theater and outdoor activities.. After all, Americans 65 years and older spend an average of about seven hours a day on leisure and sports, compared to the five or fewer hours for those of prime working age. Iowa has more than just endless fields of golden corn it also ranks as the best place for a retiree to live out their golden years. On the other hand, Maryland is way below the cadre of ranking. One factor we now consider disqualifying is a very high susceptibility to climate change and natural hazards as measured by the Federal Emergency Management Agencys new National Risk Index, which looks at 18 natural hazard risks, plus communities preparation for and ability to cope with them. As it turns out, Ashland and the two other finalists in the Griffiths search, Santa Fe, N.M., and Boulder, Colo., all earned spots on Forbes new list of the 25 Best Places To Enjoy Your Retirement. HERE ARE THE BEST PLACES TO RETIRE IN FLORIDA. If you own a paid-off home in a high-cost area like Boston or San Francisco, maybe affordability isnt a priority for you. The top state income tax rate (on taxable income over $39,700) is 5.5%, dropping to 5.3% next year. The lower the score, the higher the state ranks as a retirement destination. Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. The Sunshine State has long been a haven for retirees. With 120 nearby wineries, this quaint rural town 260 miles southeast of Seattle, boasts a surprisingly robust fine dining scene. Theres an Osher Lifelong Learning Institute at San Francisco State, a high ratio of doctors per capita and good air quality. Its considered decently safe to live in and ranks above average for quality of life. For example, WalletHub found that Mississippi has the lowest adjusted cost of living, while Hawaii has the highest. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Wisconsin offers cheaper housing costs and a relatively low crime rate. Mild weather, gorgeous scenery, and welcoming citizens are a few . You have money questions. Wise up with top stories and timely tips Tuesdays and Thursdays.