States where it’s good not to collect Social Security checks – Don’t retire there

Where you choose to retire is a personal decision based on many factors, but there are better and worse places to retire. The country considered the worst for retirement The United States is also the largest: Alaska. For the third year in a row, Alaska is the worst state for retirees, according to Bankrate’s 2024 survey of the best and worst places to retire in the US.

Bankrate’s rankings included a comprehensive analysis of all 50 countries, based on five key areas that were weighted differently to indicate their importance. These groups are

• Cost (40% of total score): Analyzed various financial factors, including local and state sales tax, cost of living and total annual income in each state.
• General Health (25% of total score): Assessed factors such as number of adults over 62 per 100,000 population, as well as access to basic services such as food and health care beauty.
• Quality and Cost of Health Care (20% of total points): focuses on the cost of health care at the state level and the performance of each country’s health system.
• Weather (10% of total points): considered weather data, including average annual temperatures and frequency of natural disasters such as hurricanes, earthquakes and typhoons.
• Crime (5% of total score): Analyzed crime statistics, including property crimes and violent crimes per 100,000 people.

To compile this ranking, Bankrate used data from several reputable sources, including the National Economic Research Council, the US Census Bureau, the Tax Foundation and the National Oceanic and Atmospheric Administration (NOAA).

Why Alaska is the worst state to retire to

Alaska, a temperate climate, experiences a wide range of temperatures throughout the year. While summer temperatures can range from 45 to 75 degrees Fahrenheit, winter temperatures often drop below 10 degrees Fahrenheit.

In addition, Alaska presents significant financial challenges for retirees, especially those on fixed incomes. According to RentCafe, the cost of living in Alaska is about 30% higher than the national average. Housing costs are about 17% higher than the national average, and utility and health care costs are nearly 50% higher. In addition, access to groceries can be limited depending on the part of the country you are in and more expensive due to the general distance of the area.

On the other hand, Alaska is considered tax-friendly for retirees. The government does not levy taxes, inheritance, or property taxes, and it does not tax pension payments or Social Security retirement benefitsperhaps because its residents need every bit of money they can to live comfortably.

But Alaska it is not the only country with these problems; the issue of affordability is a recurring theme among some countries that rank lower on the list. States like New York, Washington and California – known for their high cost of living – are also among the least desirable places to retire. However, the high cost of living should not stop potential retirees from considering these countries. Instead, it may require more careful financial planning to ensure adequate retirement savings.

To help with such planning, there are many tools available, such as CNBC Make It’s Retirement Calculator, which provides an estimate of how much a person might need to save for retirement based on factors such as age now, income, savings and retirement. age.

While cost of living is undoubtedly an important factor in deciding where to retire, it is not the only factor to consider. Non-financial issues, such as access to public and social services, are also important. These factors are often overlooked, but they can have a significant impact on quality of life in retirement. Bankrate emphasizes the importance of these factors in its study.

“Having that sense of community and human connection is a big thing for healthy aging,” it says Kerry Hannon, retirement expert and author of *In Control at 50+: How to Succeed in the New World of Work*. “Isolation and loneliness is not where you want to be, so look for your community,” he emphasizes.