You are not required to retire to a place on a sunny beach where you may fish and play golf. However, around one in five retirees do relocate, and they typically do so in search of warmer climes, more affordable housing, and smaller cities and towns.
According to a 2021 study by United Van Lines, which monitors customer data for patterns of migration from one state to another. According to the report, nearly 20% of movers cited retirement as the reason for their move, an increase from 2015 when it was 13%.
Most of these people traveled to Florida, South Carolina, and Arizona. According to United Van Lines, Rhode Island, New Jersey, and Connecticut were the states that had the most retirees leave them. For instance, almost 25% of New Jersey residents who are getting close to retirement intend to relocate to Florida.
It’s wonderful if you enjoy where you live and can continue to afford it in retirement. However, the U.S. Census reports that among the 47.8 million Americans aged 65 and above, their average annual income is only $38,515 and their average net worth is $170,516.
The median working-age family only had $7,800 saved in retirement accounts in 2016, and nearly half of households with children under the age of 18 have no savings at all. According to a 2019 survey by the Economic Policy Institute, 10% of people had $320,000 or more.
That might be sufficient for a few years in some states or cities.
Think carefully if you’re looking for a less expensive area to live. States have different tax structures, so certain locations can be advantageous for people who intend to rent rather than buy.
According to Ginni Field, a real estate broker in Oceanside, California, “you have to think about what you still want to do when you’re considering a community.” Senior buyers and sellers are Field’s area of expertise.
“Do you still want to be able to play pickleball, golf, or tennis? For people in that age bracket, access to healthcare, shopping, and public transit are crucial.
A personal finance website looked at the best and worst states for retirement. A weight was given to each of the five categories—affordability (40%), well-being (20%), culture and diversity (15%), weather (15%), and crime (10%)—after Bankrate examined numerous public and private statistics pertaining to the life of a retiree.
The states are listed from most affordable to least affordable, along with Bankrate’s overall ranking and performance in the other categories. Florida is the most affordable state overall, although it is ranked 18th. The best state for weather is Arizona, while the worst state for weather is Maine. The best state for crime is New Hampshire, while the worst state for crime is New Mexico.
Massachusetts is ranked first while Mississippi is ranked fifty-first in the category of well-being, which takes into account economic security, access to food, physical health, and health care.
The Cost of Living Index from the Council for Community and Economic Research, released in July 2022, and the property and sales tax rates from the Tax Foundation rankings for 2022 were used to determine affordability.
These are the 30 states where retiring is most affordable, according to a Bankrate analysis.