If retirement days are coming closer, you may want to take a glance at the following list recently reported in USA Today as the 10 worst states to call home for your golden years. The listing in USA Today was based on a survey by MoneyRates which looked at five major categories for their analysis – senior population, economics, crime, weather, and senior life expectancy.
- Alabama – ranked poorly because of low life expectancy (age 65) and high crime. Alabama does not have a state estate tax.
- Michigan – ranked poorly due to economic factors, crime, and many other reasons.
- (tie) New York – the state actually has the lowest rate of property crime per capita in the nation; however it ranked poorly due to high income and property taxes and a high cost of living, as well as harsh winters. The fact that New York’s separate state estate tax is phasing out may help in future rankings.
- (tie) Maryland – has more crime than the national average; ranks poorly due to a high cost of living and higher than normal taxation. As with New York, the fact that Maryland’s separate state estate tax is phasing out may help in future rankings.
- (tie) Georgia – ranks very well for its climate, but ranks poorly in the other categories. It should be noted that Georgia does not have a state estate tax.
- Nevada – violent crime per capita in Nevada is the second worst of any state; also have low life expectancies here. The state has neither a state income tax nor a state estate tax.
- Illinois – a weak labor market and high property taxes here; the study notes that more retirees are working part-time jobs these days. Illinois does have a separate state estate tax.
- Tennessee – has the highest incidence per capita of violent crime in the country; also has low life expectancy. Tennessee has no tax on income except dividends and interest.
- Louisiana – ranks poorly due to high crime and low life expectancy.
- Alaska – has the worst rated weather in the nation; and high cost of living and weak labor market. Alaska has no state income tax and no separate estate tax.
The above survey demonstrates that taxes are only a small part of the equation. Three of the five worst states for retirement have no state income tax, Alaska, Nevada, and Tennessee (except dividend and interest income tax). Many of the 10 worst states have no state estate tax. Interesting enough, it appears that taxation is not the primary consideration for most people.
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This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.