When considering the ideal place to spend your retirement years, it’s essential to weigh various factors. Interestingly, while the best state to retire in the U.S. is among the smallest, the worst state for retirement is the largest.
For the 3rd consecutive year, Alaska has been ranked as the worst state to retire in the U.S., according to Bankrate’s comprehensive study on the best states to retire in 2024.
Considerations for Retirement Destination Ranking
Bankrate’s detailed analysis involves ranking all 50 states across five key weighted categories:
- Affordable or not (40 percent): This category examines factors such as local and state sales taxes, cost of living, and average annual property taxes.
- General Wellbeing (25 percent): This includes metrics like the number of adults over 62 per 100,000 residents and access to food and health care services.
- Quality and Cost of Health Care (20 percent): This looks at the cost of health care at the state level and the performance of each state’s health system.
- Climate (10 percent): Evaluates data on the state’s average annual temperature and the frequency of natural disasters such as tornadoes, earthquakes, and hurricanes.
- Criminality (5 percent): Assesses the amount of property crimes and violent crimes per 100,000 residents.
Bankrate’s extensive analysis draws from multiple reliable sources, including the Council for Community and Economic Research, the U.S. Census Bureau, the Tax Foundation, and the National Oceanic and Atmospheric Administration.
Understanding these factors can help you make a more informed decision about where to spend your golden years, ensuring a happy and fulfilling retirement.
When considering retirement destinations, it’s crucial to weigh all aspects of the location. According to Bankrate, here are the 10 worst states to retire in, with a particular spotlight on Alaska.
The Challenges of Retiring in Alaska
One of the most significant challenges that retirees might face in Alaska is the weather. Despite summer temperatures ranging from 45 to 75 degrees Fahrenheit, winter can bring harsh conditions with temperatures plunging to negative 10 degrees Fahrenheit.
High Cost of Living
Alaska is also known for its high cost of living, which can be particularly tough for those on a fixed income. According to RentCafe, the cost of living in Alaska is approximately 30% higher than the national average. Breaking it down:
- Housing costs: 17 percent higher than the national average.
- Utilities and health-care expenses: Nearly 50% higher than the national average.
Tax Benefits
On a brighter note, Alaska offers several tax-friendly benefits for retirees. The state does not impose income tax, estate taxes, or inheritance taxes. Additionally, pension payments and retirement benefits from Social Security are not taxed.
While Alaska presents some financial and environmental challenges, its tax policies might offer some relief. It’s essential to consider all these factors carefully when deciding if Alaska is the right place for your retirement.
The issue of affordability seems to be a recurrent theme among the states that rank lower on the list, including New York, Washington, and California—states that are known for their relatively high costs of living. Other States in the list of the worst states for retirement are New York, Washington, California, and North Dakota respectively.
