Når man overvejer at gå på pension, plejer det store spørgsmål at være, hvornår man skal gå på pension? Eller måske, hvor mange penge skal du bruge for at gå på pension? Men hvor skal man trække sig tilbage kan være en lige så presserende sag. Faktisk, ifølge en undersøgelse foretaget af Merrill Lynch og Age Wave (et analysefirma med fokus på den aldrende befolkning), er 37 % af pensionisterne allerede gået på pension, og yderligere 27 % agter at gøre det. Selvom du er blandt de andre, der planlægger at forblive på pension, vil du måske opleve, at det at gå ind i en ny fase af livet ændrer verden omkring dig, hvilket kræver en revurdering af, hvordan din hjemstat behandler dit redeæg.
For at hjælpe dig med at veje fordele og ulemper ved hver stat, når det kommer til pensionering, rangerede vi alle 50 stater baseret på finansielle faktorer, der er kritiske for pensionister, herunder leveomkostninger, skattebyrder, sundhedsudgifter, husstandsindkomster, fattigdomsrater og statens økonomiske velvære. Selvfølgelig spiller masser af andre faktorer ind i denne store livsbeslutning, fra nærhed til familie til klimapræferencer. Men vi overlader vurderingen af disse personlige overvejelser til dig.
Uanset om du er ved at finde ud af, hvor du skal gå videre, eller bare hvordan du skal justere dit budget, når du går på pension, kan du se, hvordan hver stat i fagforeningen behandler sine pensionister økonomisk.
Pensionister vil helt sikkert elske Dixies hjerte. Du kan få mange af Floridas pensionattraktioner - varmt vejr, dejlige strande og masser af golf - alt sammen til en lavere pris. De lave leveomkostninger strækker sig til sundhedspleje, hvor pensionister kan forvente at bruge 4,4 % mindre end det gennemsnitlige pensionerede amerikanske par. Skatter er også nemme på budgettet, med indkomstskattesatser, der spænder fra kun 2 % til 5 %, og sociale sikringsydelser er fritaget.
The Last Frontier er det sidste sted, de fleste mennesker ville vælge som pensionistdestination. Faktisk er kun 69.305 mennesker i hele staten 65 år og ældre - hvilket gør det til den mindste befolkning af seniorer i landet. De folk, der går på pension i Alaska, klarer sig dog godt. De betaler ingen statsindkomst eller omsætningsskat, og berettigede indbyggere får udbetalt en årlig udbyttecheck fra statens olieformueopsparingskonto bare for at bo der. I 2017 var betalingen $1.100 pr. person. Og på trods af statens høje leveomkostninger er fattigdomsraten blandt seniorer den laveste i USA med kun 4,5 %.
Grand Canyon State er med sit rigelige solskin, tørre varme og smukke ørkenlandskab en populær pensionistdestination. Men de økonomiske rammer er ikke helt så maleriske. På trods af leveomkostningerne lidt over gennemsnittet falder den gennemsnitlige husstandsindkomst for seniorer 10,8 % under landsgennemsnittet. Den statslige omsætningsafgift på 5,6 % hjælper ikke, og den kan skubbes så højt som 10,9 % i nogle lokaliteter – selvom gennemsnittet er 8,25 % ifølge Skattefonden.
På den lyse side kan du finde lommer til overkommelige priser i hele staten. Leveomkostningerne i Phoenix er for eksempel 5 % under gennemsnittet, ifølge Council for Community and Economic Research. Og hovedstaden opkræver ikke moms på dagligvarer.
Naturtilstanden byder på ekstraordinært lave omkostninger. Faktisk er det forbundet med West Virginia for de laveste samlede leveomkostninger i landet, og dets gennemsnitlige sundhedsudgifter for et pensioneret par er de tredje billigste i den amerikanske stat, skatter er ikke helt så generøse:Sociale ydelser og op til $6.000 anden pensionsindkomst er undtaget, men over det kan din topindkomst ramme 6,9 %, hvis din indkomst overstiger 75.000 USD. Glas halvfuldt (ikke rigtig):De fleste pensionerede beboere vil næppe nå det høje beslag. Faktisk er den gennemsnitlige husstandsindkomst for folk på 65 år og ældre i Arkansas 21 % under det amerikanske gennemsnit. Fattigdomsraten for seniorer er 10,5 %, den ottende højeste i landet.
Golden State har de næsthøjeste leveomkostninger i landet, kun efter Hawaii. Og selvom den gennemsnitlige husstandsindkomst for seniorer er et godt stykke over gennemsnittet, er masser af ældre beboere ikke i stand til at bære den tunge byrde:1 ud af 10 californiere på 65 år og derover lever i fattigdom. Skattesituationen øger tyngdepunktet:Bortset fra sociale sikringsydelser beskattes pensionsindkomst fuldt ud, og Californien pålægger de højeste statslige indkomstskattesatser i landet (den højeste sats er 13,3 % for enlige filer med en indkomst på 1 mio. indkomster over $1.074.996).
Et lyspunkt:Hvis du er over 65 år, kan du kræve en ekstra fritagelse på 110 USD fra din skatteregning. Men med en lav score for finanspolitisk soliditet – den ottende værste i landet – har Californien muligvis ikke råd til et så generøst tilbud i fremtiden.
Pensionister i Centennial State kan lige nå selv de 100 år. Colorado rangerer på fjerdepladsen i United Health Foundations senior sundhedsrangering, med særligt høje karakterer i klinisk pleje og positiv adfærd. Blandt dens sundhedsrelaterede styrker har staten lave forekomster af fedme og fysisk inaktivitet hos seniorer. Det har også en lav fattigdomsrate blandt befolkningen på 65+ på 7,4 % sammenlignet med 9,3 % for nationen som helhed.
Forfatningsstaten gør ikke meget for at fremme den generelle velfærd for sine hjemmehørende pensionister. Faktisk rangerer Connecticut blandt de 10 skatte-uvenligste stater for pensionister. Ejendomsskatterne er de næsthøjeste i landet. Nogle beboere står over for skat på sociale ydelser, og de fleste andre pensionsindkomster beskattes fuldt ud, uden fritagelser eller skattefradrag for at lette byrden.
Alle disse skatter kommer oven i høje leveomkostninger. Men indbyggere i Connecticut har muligvis råd til det:Statens gennemsnitlige husstandsindkomst for seniorer er den fjerdehøjeste i USA, og dens fattigdomsrate for beboere på 65 år og ældre er lave 7,1 % mod 9,3 % for USA
Den første stat tilbyder pensionister førsteklasses skattefordele. Det beskatter ikke sociale sikringsydelser og fritager 12.500 USD for investeringer og kvalificeret pensionsindkomst for skatteydere på 60 år og ældre. Herudover er indkomstskattesatserne beskedne og spænder fra 2,2 % til 6,6 %. Derudover er der ingen moms overhovedet. Udgifter til sundhedspleje er også venlige for pensionistbudgetter, hvor et 65-årigt par forventes at betale 2,2 % mindre end gennemsnittet i USA. Leveomkostningerne er ellers relativt høje – især i betragtning af husstandsindkomsten under gennemsnittet for seniorer.
Hvis du ønsker at feste med dine jævnaldrende gennem pensionering, så tag til Sunshine State. Næsten 3,8 millioner ældre kalder Florida hjem, hvilket giver dens befolkning den højeste andel af beboere på 65 år og ældre i landet. Det er faktisk berømt for sin status som pensionist-tilflugtssted, hvad med dets varme vejr, smukke strande og syv-sæson lange "Golden Girls"-godkendelse. Men hovedattraktionen for pensionister til solskinsstaten må bestemt være skattesituationen. Florida har ingen statslig indkomstskat, ejendomsskat eller arveskat, og det beskatter heller ikke social sikring eller anden pensionsindkomst. Plus, disse fordele er ret sikre:Florida scorer topkarakterer for finanspolitisk soliditet, ifølge en nylig rapport fra Mercatus Center ved George Mason University, i høj grad på grund af dets overflod af kontanter kontra kortfristede forpligtelser.
Varmt vejr og lave leveomkostninger gør Georgien bare fersken for en lykkelig pensionistdestination. Udgifter til sundhedspleje er særligt overkommelige for pensionister, med de sjette laveste gennemsnitlige omkostninger for et pensionistpar i landet. Derudover gør Georgiens gunstige skattesituation det til en af de 10 bedste stater for skat på pensionister.
Som du ville forvente på en ø-paradis, er det ikke billigt at bo. Faktisk har Hawaii de højeste leveomkostninger i landet. Og alligevel viser landskabet sig at være idyllisk for pensionisternes økonomi. Dels har de ældre, der har slået sig ned der, råd til det. Den gennemsnitlige husstandsindkomst for personer på 65 år og ældre er den højeste i USA med 33,8 % over det nationale niveau. Plus, sundhedsomkostninger er overraskende overkommelige med 11,4% under landsgennemsnittet. Det tilskrives Aloha-statens højeffektive sundhedssystem – rangeret i top af Bloomberg – og dets sunde befolkning, der indtager den tredjehøjeste plads i United Health Foundations Senior Health Report-rangeringer, som er baseret på folks adfærd, såsom fysisk aktivitet, som f.eks. samt lokalsamfundsstøtte og klinisk pleje tilgængelig.
Læg dine kartoffelvittigheder væk, folkens. Idaho har nogle seriøse fordele ved at tilbyde din pension. Statens overkommelighed gør det for det første nemt at strække din pensionsopsparing. Og selvom skattebilledet for pensionister er blandet - der er en statsdækkende salgsskat på 6% og en statslig indkomstskat, der kan gå så højt som 7,4% - er sociale ydelser ikke underlagt statsskatter. Idaho er også en af de stater, der ikke har en arve- eller ejendomsskat.
Præriestatens finanspolitiske status har været faldende i årevis. Illinois har vægtig langfristet gæld, store ufinansierede pensionsforpligtelser og store budgetubalancer. Alt dette placerer det på det næstlaveste sted på statens ranglister for finanspolitisk soliditet, efter kun New Jersey, ifølge George Mason Universitys Mercatus Center. I oktober 2015 nedjusterede vurderingsbureauet Fitch statens kreditvurdering til næsten junk-status. Det betyder, at skattelettelserne på en række forskellige pensionsindkomstkilder, herunder 401(k)-ordninger og individuelle pensionskonti, næppe er sikret, og højere skatter er på bordet. Allerede nu er statslige og lokale salgsafgifter så høje som 11 % i nogle områder.
Med sine leveomkostninger under gennemsnittet kan Indiana virke som en vinder for pensionister. Men når man tænker på husstandsindkomsten langt under gennemsnittet - på 21,4 % under gennemsnittet, for at være præcis - begynder de ældre indbyggere i Hoosier-staten mere at ligne underdogs. Og skattesituationen hjælper ikke:De fleste andre pensionsindtægter end sociale ydelser er skattepligtige til almindelige satser.
Lave leveomkostninger er den store fordel for pensionister i Hawkeye State. Udgifterne til sundhedspleje er særligt overkommelige, 5,6 % under det amerikanske gennemsnit, baseret på, hvad et 65-årigt pensionistpar kan forvente at betale for resten af deres liv. Det skulle hjælpe med at husstandsindkomsten for seniorer under gennemsnittet strækker sig længere. Men skattesituationen kan være byrdefuld:Mens sociale sikringsydelser er ubeskattede, kan nogle pensionsindkomster blive ramt af den høje topsats på 8,98 %. På den positive side kan personer på 55 år eller ældre udelukke op til 6.000 USD, hvis de er enlige (12.000 USD for fælles ansøgere) af skattepligtig pensionsindkomst.
Pensionister er måske hellere i Oz. Blandt Kiplingers mindst skattevenlige stater for pensionister hæver Kansas skattesatserne for at forsøge at tackle dets stigende budgetunderskud. Dens skattemæssige sundhed giver den en 32. placering, ifølge en nylig rapport fra Mercatus Center på George Mason University. For 2018 varierer indkomstskattesatserne fra 3,1% til 5,7% - og det gælder for de fleste pensionsindkomster, inklusive sociale sikringsydelser (medmindre din justerede bruttoindkomst er $75.000 eller mindre). Alligevel kan de overkommelige leveomkostninger være nok til at overbevise dig om, at der ikke er noget sted som hjemme i Kansas.
Kentucky rangerer som den næstværste stat i landet med hensyn til seniorsundhed, ifølge United Health Foundation. Blandt dens udfordringer er en høj forekomst af rygning, fysisk inaktivitet og fattigdom samt et lavt antal kvalitetsplejehjem.
På den positive side tilbyder Bluegrass State lave leveomkostninger samt en række skattelettelser for pensionister. Sociale ydelser såvel som op til $41.110 af anden pensionsindkomst er fritaget for statsskatter. Men med en lav placering på 47. pladsen i landet for skattemæssig forsvarlighed er disse skattefordele muligvis ikke særlig sikre.
Leveomkostningerne er lave i Louisiana, men det er indkomsterne også. Og sundhedsudgifterne viser sig stadig at være dyre med et 65-årigt par i staten, der forventes at betale 2,1 % mere end det gennemsnitlige amerikanske par på samme alder. En årsag til disse høje omkostninger kan være lokalbefolkningens dårlige helbred. Faktisk havde Louisiana den fjerde laveste seniorsundhedsscore, ifølge United Health Foundation, delvist på grund af høje forekomster af fedme, rygning og psykiske lidelser, samt lav tilgængelighed af geriatrikere og kvalitetsplejehjem. Fattigdomsraten for mennesker på 65 år og ældre er også bemærkelsesværdig høj med 12,9 %, kun efter Mississippi for de højeste i USA.
Pine Tree State kan være lidt stikkende, når det kommer til sine pensionister. Mens leveomkostningerne er en smule under gennemsnittet – med sundhedsomkostninger for et pensioneret par særligt overkommelige på 5,1 % under gennemsnittet – er indkomsterne for seniorhusholdninger endnu lavere, i gennemsnit 25,2 % under det typiske amerikanske niveau. Og skattelettelser gør ikke meget for at øge pensionsbudgetterne:Mens sociale sikringsydelser ikke er underlagt statsskatter, er de fleste andre pensionsindkomster skattepligtige. Der er endda en ejendomsskat, selvom den kun gælder for ejendom til en værdi af mere end 11,18 millioner dollars i 2018.
Pensionister i Maryland er bundet til at være crabby. Den gennemsnitlige husstandsindkomst for folk på 65 år og ældre er den næsthøjeste i landet - men den bliver presset meget af høje skatter og leveomkostninger. Fristaten beskatter ikke sociale ydelser, men udlodninger fra individuelle pensionskonti er fuldt skattepligtige. Og skatterne bliver ved med at komme, selv efter du har passeret:Maryland er den eneste stat, der har en ejendoms- og arveafgift, dog kun ved høje tærskler, hvor førstnævnte kun gælder for godser, der overstiger 4 millioner USD i værdi i 2018.
Bay State har nogle store omkostninger for pensionister. Ud over de tredjehøjeste samlede leveomkostninger i landet har det også de næsthøjeste sundhedsudgifter for et 65-årigt par, kun efter Alaska. Og selvom den gennemsnitlige husstandsindkomst for seniorer er høj, kan skatter tage en stor bid af denne indtjening. Sociale ydelser er fritaget, men de fleste andre pensionsindkomster beskattes med statens faste sats på 5,15 %. Plus, i betragtning af dens lave skattemæssige velvære - den tredje-værste i USA ifølge Mercatus Center ved George Mason University - vil skattesituationen sandsynligvis blive hårdere, før den bliver venligere for pensionister.
The Great Lakes State can make for a decent retirement destination. It offers some of the lowest living costs in the country and maintains a low poverty rate among seniors at 8.1%, compared with 9.3% for the U.S. The tax situation, though, is not so great—and a bit complicated. Social Security benefits are not currently taxed, but starting in 2020, taxpayers turning 67 will have to choose between deducting Social Security income or $20,000 of all income sources for single filers ($40,000 for couples).
The Land of 10,000 Lakes is a hard place for retirees to stay afloat. Above-average living expenses and below-average incomes can equate to imbalanced budgets in retirement. Plus, the tax situation adds an extra burden. One of the 10 Worst States for Taxes on Retirees, Minnesota taxes Social Security benefits to the same extent as the federal government. Most other retirement income, including military, government and private pensions, is also taxable. And the state's sales and income taxes are high.
On the other hand, Minnesota is a great place for health-focused retirees. The state is the healthiest in the country for seniors, according to the United Health Foundation rankings.
Low costs and generous tax breaks make the Magnolia State a sweet deal for retirees. Social Security and other qualified retirement income—including distributions from IRAs, 401(k)s and other plans—are not taxed, and property taxes are among the lowest in the country. But on the sour side, Mississippi ranks dead last when it comes to senior health, according to the United Health Foundation. It also suffers the worst poverty rate in the country among people age 65 and older at a whopping 13.4%; the U.S., 9.3%.
The Show Me State has little to tell in the way of retirement advantages. The low living costs go hand in hand with relatively low household incomes. And the tax situation is moderate:If your adjusted gross income is less than $85,000 for single filers ($100,000 for couples filing jointly), your Social Security benefits are not taxed and you can deduct a portion of your public retirement benefits. But distributions from individual retirement accounts, 401(k)s and other employer retirement plans are taxable at ordinary income tax levels, which hits the top rate of 6% on more than just $9,000 of taxable income.
And one notable downside:Missouri ranks low at 42nd in the nation for senior health with a high percentage of low-care nursing home residents and a high prevalence of smoking, according to the United Health Foundation.
You may have a hard time holding onto your fortune in the Treasure State. Living costs are above average, but incomes are 21.2% below average. The tax situation certainly doesn't help:Montana taxes most forms of retirement income, including Social Security, and the top rate of 6.9% kicks in once taxable income tops just $17,400.
Still, Big Sky Country seems to retain a large number of retirement-age folks:The state's 65-and-older population share is the fifth highest in the U.S. The great (albeit cold) outdoors, including Yellowstone and Glacier national parks, may be what trumps the state's drawbacks for adventurous retirees.
The Cornhusker State collects its fair share of taxes from resident retirees—perhaps more than its fair share. Most forms of retirement income are taxable at ordinary income rates, though Social Security benefits are exempt for joint filers with an adjusted gross income of $58,000 or less or $43,000 for single filers. It seems like the state could afford to be more generous:Its fiscal health ranks sixth in the U.S., according to the Mercatus Center at the George Mason University.
Retiring to Nevada can be a gamble. Pro:No state income tax means you get to keep more of your cash. Con:You'll need it to cover higher than average expenses. Plenty of people make it work. Seniors in the Silver State have a relatively low poverty rate of 8.4%, compared with the national average of 9.3%.
The Granite State's current tax situation gives retirees a solid advantage. Ranking among the 10 Most Tax-Friendly States for Retirees, it doesn't tax Social Security benefits or other retirement income or levy any sales tax. That savings helps balance out the above-average living costs and below-average household incomes. Another plus:New Hampshire ranks fifth in the U.S. for senior health, according to the United Health Foundation.
Retirees planning to plant themselves in the Garden State might want to think twice. Living costs are the fifth-highest in the country, with retiree health care costs ranking third-highest. Plus, property taxes rank highest in the nation—a negative made even worse with the new tax law limiting how much of such tax payments is deductible. To top it off, with the worst ranking for fiscal soundness in the U.S., New Jersey's tax picture is unlikely to improve soon.
Still, residents seem to bear the burden well. The average income for 65-and-up residents is the third-highest in the U.S., and the poverty rate for the age group is a low 8.1% (9.3% nationwide).
The Land of Enchantment is not such a magical place for retirees. The tax breaks, for one thing, leave something to be desired:Social Security benefits are subject to tax by the state, as are retirement account distributions and pension payouts, though low-income seniors may qualify for a retirement-income exemption of up to $8,000. Unfortunately, plenty of people may be able to take advantage of that break, after all. The poverty rate for people 65 and older is 11.9%, the third highest in the country.
One (pricey) Big Apple spoils the entire Empire State. Manhattan reigns as the most expensive place to live in the U.S., with costs soaring 138.6% above the national average, according to the Council for Community and Economic Research. However, New York state's relatively lower average cost of living means you can find more affordable spots outside the city:Brooklyn, for example, is “just” 82% more expensive than the average U.S. metro area, and Rochester and Utica actually offer below-average living costs.
Despite boasting an average income for residents age 65 and older that's among the top five in the country, the same age group suffers a poverty rate of 11.4%, worse than the national 9.3% rate and tied with Kentucky for the fourth-highest rate in the country.
Its weather is mild, as is its financial attractiveness as a retirement destination. The Tar Heel State offers below-average costs across most metro areas, with the Kill Devil Hills micro area (part of the Outer Banks) being one pricey exception, according to the Council for Community and Economic Research. But income levels are typically lower, too. And though Social Security benefits are still not taxable, other breaks for retirees have been eliminated, leaving most other retirement income taxable at the current flat rate of 5.49%.
Cross the border from South Dakota, our top state for retirement, and you'll find many of the same benefits:North Dakota offers retirees affordable living costs and overall low taxes. Unfortunately, retirement income, including Social Security benefits, gets no tax break in the Peace Garden State. But income taxes are so low—ranging from 1.1% to 2.9%—that it's still considered tax friendly. Plus, the state ranks second-highest for fiscal soundness, indicating that the economic health is stable enough to sustain a friendly tax environment.
Ohio's status as a destination for retirees matches its geographic location:in the middle. Its living costs are well below average, but so is its average household income. Even the tax situation is just fine:Social Security benefits are not taxed, and retirees living in the Buckeye State can claim a tax credit of up to $200 on other retirement income.
The Sooner State is a middle-of-the-road retirement destination. Household incomes are relatively low, but so are overall living costs. The tax situation helps somewhat:Social Security benefits are not taxed, and you can exclude up to $10,000 per person of other retirement income. On the downside, Oklahoma is the third-worst state in terms of senior health, according to the United Health Foundation's rankings, which took into account quality of health care facilities, physical behaviors of resident seniors and a host of other health-related criteria. Problem areas for Oklahoma include:high levels of physical inactivity and smoking among seniors, as well as low availability of geriatricians and quality nursing homes.
Taxes in the Beaver State gnaw away at fixed incomes. It charges no sales tax, but Oregon levies one of the highest top state income tax rates in the U.S., at 9.9%. And although Social Security benefits are exempt, most other retirement income is taxable. Not that there's much to tax. Oregon seniors bring in below-average household incomes—15.9% less than the national average of $53,799. And despite those low incomes, overall living costs are high. One bright, cheap spot:Health care costs for a retired couple in Oregon are typically 2.6% lower than the U.S. average.
The Keystone State locks in an affordable standard of living for retirees. Health care costs for a 65-year-old retired couple come in 2.9% below the national average. And the tax situation, among the 10 friendliest in the U.S. for retirees, can boost your bottom line even more:Most retirement income, including Social Security benefits, is not taxed. Unfortunately, Pennsylvania's own budget is not so sturdy. With not enough cash to cover short- or long-term obligations, its fiscal health ranks a low 45th among all 50 states, according to rankings from the Mercatus Center at the George Mason University.
Tiny Rhode Island packs in big costs. Living expenses across the board are well above average with health care costs for a 65-year-old couple 1.1% higher than average. At least above-average incomes for older residents can make those burdensome costs a bit more bearable. Also, the tax situation has been improving—the Ocean State no longer taxes Social Security benefits for single filers with up to $80,000 in adjusted gross income and joint filers with up to $100,000 in AGI. And up to the first $15,000 of retirement income may be exempt for retirees, depending on income levels. Still, the updated tax situation is not enough to move it out of not-friendly territory for retirees.
If the mild weather and southern charm of the Palmetto State aren't enough of a retirement draw, surely the affordability can tempt you. On top of below-average living costs, the tax situation goes easy on a fixed income, too. South Carolina doesn't tax Social Security benefits and offers generous exemptions on other types of retirement income. It also does not levy an inheritance or estate tax. Property taxes tend to be very low.
The Mount Rushmore State might not be the first place that comes to mind when you dream of where to retire, but it's first place on our list. Affordability is the main factor pushing it to the top spot. In addition to low living expenses, including for health care, South Dakota is one the 10 Best States for Taxes on Retirees. And you can be confident it'll stay that way. The state ranks third in the country for fiscal soundness, according to a recent report from George Mason University's Mercatus Center, which indicates high confidence that it can keep up with short-term expenses and long-term financial obligations.
The Volunteer State is a good choice for budget-conscious retirees. According to data from the Council for Community and Economic Research, every major metro area offers below-average living costs in almost every category of expenses, including health care—among the biggest financial concerns for aging Americans. Plus, Tennessee does not levy state income taxes, so your retirement income can stretch even further. And being economically healthy, Tennessee should have no issues maintaining its tax-friendliness; it ranks eighth of all states for fiscal soundness, according to a recent report from the Mercatus Center.
Living expenses in the Lone Star state are typically low, but health care costs are an exception. In fact, the amount a 65-year-old retired couple can expect to pay for these costs is 1.7% more than the U.S. average. On the bright side, incomes are also relatively high and go untaxed by the state. Still, not everyone can afford Texas:The state has a poverty rate of 10.8% for seniors, the sixth highest in the U.S.
The Beehive State is a sweet spot for active retirees. Utah ranks second in the U.S. for the overall health of its 65-plus population, according to the United Health Foundation, and offers plenty of outdoor recreation options that are sure to keep you buzzing through retirement. There are five national parks, seven national monuments, five national forests and 43 state parks to host all your hiking, climbing, boating and skiing desires.
Maybe the activity can distract you from the state's unfriendly tax laws—Utah is one of the few states that taxes Social Security benefits, for example. Still, the tax man isn't keeping Utah's seniors down:Even with income levels for older adults just about average for the U.S., the state has the third-lowest poverty rate in the country for people 65 and older.
Steep living costs and taxes weigh heavily on below-average incomes in the Green Mountain State. Social Security benefits, as well as most other forms of retirement income, are subject to state taxes, and the top income tax rate is a high 8.95% (which kicks in at $416,500 for single filers and $421,900 for joint filers).
On a positive note, Vermont ranks eighth in the country in terms of senior health, according to the United Health Foundation's rankings.
Virginia is for retirees. Overall living costs are above average, but high household incomes among seniors—11.3% higher than the national average of $53,799, to be exact—should be able to cover the spread. Plus, health care costs, a particularly worrying budget item for retirees, actually tend to be relatively affordable, with a retired couple in the state expected to pay 3.4% less than the average couple in the U.S. Plus, the Old Dominion doesn't tax Social Security benefits and allows residents 65 and older to deduct income up to $12,000 per person, depending on their income levels.
The Evergreen State can be a great place to stay refreshed throughout retirement. Washington boasts more than 3,000 miles of coastline and two major mountain ranges:the Cascades and the Olympic Mountains. So active retirees have plenty of opportunities to boat, swim, climb, hike and more. No wonder the state ranks second in the nation (after California) for physically active seniors, according to the United Health Foundation's senior health rankings report.
Despite its below-average living costs, the Mountain State offers some rocky terrain for retirees. Retirement income, including Social Security, is taxed to the same extent as it is on your federal form—though the first $8,000 is exempt. And given the state's fiscal health, its tax situation is unlikely to get friendlier:According to a recent report from the Mercatus Center at George Mason University, West Virginia ranks as the ninth-worst state in terms of fiscal soundness.
The state also scores poorly for the health of its 65-and-over population, ranking 45th in the country, according to the United Health Foundation. While 64.6% of older adults nationwide are considered able-bodied, only 56.6% of those in West Virginia can say the same—the worst in the U.S.
Wisconsin seniors suffer the lowest average household income in the nation. And yet, the living costs are only a bit below average, and a 65-year-old couple actually faces slightly higher-than-average health care costs in retirement. And taxes only make the situation worse:Social Security benefits are exempt from state taxes, but most other retirement income is subject to taxation (though there are some breaks for low-income residents).
The Equality State knows how to keep an even budget. It ranks fifth in the nation for its fiscal health, holding more than enough cash to cover its obligations (thanks to plenty of revenues from oil and mineral rights), according to the Mercatus Center. That bodes well for its ability to maintain its generous tax benefits for retirees and all its residents. There's no state income tax at all, and the state sales tax is a modest 4.5%.
To rank all 50 states for retirement, we weighed a number of factors: