If you are looking for the best place you can retire, this is somewhat similar to searching for a true friend. There are many good-looking ones out there, but unfortunately, there are also some that are on the unattractive side. Read on and discover ten of the worst states for retirement. In the case of retiring, a one-size approach will not work, as everyone’s retirement situation is different.
- High property taxes – you cannot avoid these taxes if you own property. Regardless of how much your income is, the taxes you pay are based on the value of your home.
- Taxation of retirement income/ pension and social security – the majority of individuals in America will attain social security in retirement. It is not so much, which makes the taxes on that income not so critical. Conversely, for those who receive benefit pensions, the taxes on those pensions may be a problem during retirement.
- Living cost – concerning the cost of living, it makes perfect sense to search for a location where the uncommon dollars can go further.
- Inheritance taxes and low estate
- Warm winter climate
- Where your family, children, and friends live
- Good medical care
- A place you have always wanted to live
- Natural beauty
- Cultural and recreational opportunities
- Crime and natural disasters
Top Worst States for Retirement
The first of the worst states for retirement is New Jersey. The negatives about the place, which make the location one of the worst states for retirement, are:
- It has the highest property tax in the nation
- Taxes pensions
- Estate taxes are also highest in the nation
- There is a high exclusion for pension income for the Garden State
- There are no taxes on social security benefits
- The gas tax is the lowest in the nation
- The world’s best beaches are here
- The location has a senior tax freeze program
The second of the ten worst states for retirement is Illinois. The negative points with this place are it has the second highest property taxes, ranks fifth with gas tax, and has an estate tax.
- Social security income and pensions are excused from taxation
- The living cost is average
The third of the ten worst states for retirement is Wisconsin. The negative points with state are is ranks amongst the fourth highest for property taxes in the US. The retirement income is taxable, and the income tax rate is relatively high.
- There is no estate tax
- There is no tax on social security benefits
The fourth of the ten worst states for retirement is Nebraska. The negatives regarding the place are it ranks the sixth highest for property tax. Pension and social security income are both taxed and there is an inheritance tax.
- Cost of living is the second lowest
The fifth of the worst states for retirement is Michigan. The negatives are high property taxes as a percentage of the home value.
- Social security remains excused
- There is no inheritance or estate tax
- The cost of living is below average
The negatives regarding Vermont include high property taxes, pension and social security income is taxed, and the cost of living is high.
- The state is beautiful
- The forests and mountains offer outstanding recreation
Negatives with Ohio include, some of the retirement income and pension is taxed. The marginal tax rate is at 5.95 percent.
- The estate state tax in Ohio has been cancelled
- The state does not tax social security benefits
- The cost of living is below average
The negatives about retiring in Connecticut are it is the fourth highest with gas tax. It ranks the tenth highest for property taxes and the fourth highest in estate taxes. The cost of living is also high.
- The personal exemptions are highest in the country
- There are also some exemptions for social security benefits
The negatives here are high property taxes, retirement and social security benefits are taxed. It has the second highest estate tax and the cost of living is high.
- Many harbors and bays
- Oceanfront property; making living near the water stress-free
The place is thirteen highest with property tax. Some of the pension income is taxable and the cost of living is very high.
- There is no tax on social security income
- Estate tax is being reduced
Now you know ten of the worst states you could think of retiring. However, each has its advantages and disadvantages, which means the result depend on one one else, other than yourself. The main reason that made these states amongst the ten worst is mainly to do with taxes and money. When you are in the process of retiring or considering it, you should make many other considerations and you can always use this list a guide. Ensure you do not base the location you choose on one factor, as everything needs to be considered for you to have a retirement that is the best and stress free.