This article takes a look at the 15 worst states to retire in 2024. If you wish to skip our detailed analysis on the intricacies of retirement living within the US, you may go to 5 Worst States to Retire in 2024.
The Reality of America’s Corporate Landscape
A half can be a lot depending on what you’re looking at. A half a sandwich may not keep you going till lunchtime, but half of your country’s workforce being unhappy certainly indicates problems. Unfortunately, that’s the case with the American workforce. In a study by the Pew Research Center, only just over half of American workers – 51% – reported being ‘very or extremely satisfied’ with their job.
The question then arises, what troubles the rest? Research by RAND has delved into the American workplace, deducing a myriad of work-life problems that plague the average worker. This includes workplace harassment and abuse, working extra hours with no compensatory pay, rigid job calendars, and physical exertion. Workers are also faced with an increasingly unstable job market – over six major companies have announced layoffs in February, including Getaround, Inc. (NYSE:GETR), Zoom Video Communications, Inc. (NASDAQ:ZM), and Snap Inc. (NYSE:SNAP), with more announcements likely to follow. Add to this the forced post-pandemic return to the office – Forbes reports that nine out of ten companies will abandon remote work by the end of 2024 – and things on the employee side are not looking good.
While these decisions may be profit-motivated – as said so in a statement by Getaround, Inc. (NYSE:GETR) CEO Sam Zaid and also echoed in Snap Inc.’s (NYSE:SNAP) layoff announcement – they leave employees feeling inadequate, unfulfilled, and with some serious practical problems.
“Our focus on profitability and sustainable business growth necessitated this difficult workforce reduction program. I want to thank all those teammates who contributed to the substantial progress Getaround has experienced. While we believe this restructuring plan is the right decision for the business, it does not diminish the challenge of letting talented colleagues go, or the gratitude we have for the dedication and professionalism of the team”
-Sam Zaid, CEO, Getaround, Inc. (NYSE:GETR)
After decades of dealing with these workplace problems, many people look towards a quieter retirement.
America: A Retiree’s Escape?
While a coveted period in any person’s life, retirement is no longer as simple as it was a few decades ago. Rising inflation, unemployment, and the poor condition of the housing market means that not every retiree has the comfortable means to retire. In fact, numbers are bleak – according to the Survey of Consumer Finances, 54% of households in America carry no retirement savings. Depending on where you live, this often makes it difficult to retire in your hometown.
So, what does the regular American then do? Well, some bid farewell to the States and find the most affordable places to retire in the world, opening themselves up to a new culture and a new experience – all while saving bank. Others simply move states, looking for cheap and beautiful places to retire in the US. Now while not everyone can move to the best US states, they certainly can avoid the worst states to retire in 2024.
To know more about the worst states to retire in 2024, read below.
Pixabay/Public Domain
Methodology
To compile this list of the 15 worst states to retire in 2024, we started by listing all of the US states. We then ranked them across three major factors, that is, the cost of living index, their tax friendliness, and their health ranking. For the cost of living index, figures were taken from the Missouri Economic Research and Information Center. The index was presented numerically where 100 depicted the national average, and any figure on either side of that meant a percentage difference. For instance, an index of 80 would mean that the cost of living is 20% below the national average. Health ranks were taken from The Commonwealth Fund’s 2023 Scorecard on State Health System Performance. Here, each state was ranked, with the number one rank going to the best-performing state. These rankings were determined by The Commonwealth Fund using multiple factors, including access, affordability, and treatment. Lastly, to determine how tax-friendly each state was, we turned to Smart Asset. Smart Asset has divided the US states into four categories, namely, Very Tax Friendly, Tax Friendly, Moderately Tax Friendly, and Not Tax Friendly. As such, we awarded the relevant states points from four to one, with four going to the Very Tax Friendly states and one going to the Not Tax Friendly states. Each of our three selected factors – cost of living, health ranking, and tax friendliness – was given equal weightage and a cumulative score was awarded to each state as a result. The fifteen lowest-scoring states then made up our list of 15 worst states to retire in 2024, being ranked in descending order with the worst state taking the number one spot. For states that earned an equal cumulative score, the cost of living index was used as a tie-breaker.
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Here are the 15 worst states to retire in 2024:
15. Delaware
Insider Monkey Score: 25
Cost of Living Index: 101.1
Health Rank: 25
Tax Friendliness: Friendly
The least-worst state on our list of worst states to retire in 2024 is Delaware. A Mid-Atlantic state, Delaware is actually a tax-friendly state that has a cost of living only 1.1% higher than the national average. If Delaware falls amongst one of the best states for taxes and cost of living, what’s it doing in the list of worst places? Apparently, its healthcare system seems to be the culprit. Delaware ranks poorly in healthcare across factors such as access, affordability, and women’s health.
14. Oregon
Insider Monkey Score: 25
Cost of Living Index: 114.7
Health Rank: 13
Tax Friendliness: Moderate
A state known for its geographic diversity, Oregon is not an ideal place for retirees looking to move for their golden years. With a cost of living that is 14.7% higher than the national average, retirees getting by on social security or an otherwise small monthly budget may find it difficult to meet ends.
13. Louisiana
Insider Monkey Score: 24.5
Cost of Living Index: 91
Health Rank: 43
Tax Friendliness: Friendly
Retirees deciding to move to Louisiana for their retirement may want to reconsider. While it boasts a healthy cost of living that is 9% lower than the national average along with friendly tax policies, its health standards are another story. With a rank of 43, there are only seven other US states with worse healthcare. Senior citizens, especially those with ailing health, should take due diligence before a Louisiana move.
12. New Jersey
Insider Monkey Score: 24
Cost of Living Index: 113.9
Health Rank: 17
Tax Friendliness: Moderate
Next up on our list of worst states to retire in 2024 is New Jersey. With attractive boardwalk beaches and city casinos, it’s easy to get pulled in by New Jersey. However, the move might prove expensive if prior planning is not applied. With a cost of living that is almost 14% higher than the national average, retirees with smaller retirement savings should be wary. New Jersey property taxes are also a nightmare – they’re among the highest in the country.
11. New York
Insider Monkey Score: 23.5
Cost of Living Index: 125.9
Health Rank: 9
Tax Friendliness: Moderate
Famous for its expensive lifestyle, New York’s place on our list of worst states to retire in 2024 is self-explanatory. Home to the Big Apple, New York has a cost of living that is almost 26% higher than the national average – a big hit to social security retirees. Tax policies aren’t great either with property and sales tax both being higher than the national average.
10. North Carolina
Insider Monkey Score: 23
Cost of Living Index: 95.3
Health Rank: 33
Tax Friendliness: Moderate
The tenth spot on our list of worst states to retire in 2024 goes to North Carolina. Located in the Southeast, North Carolina borders the Atlantic Ocean. While the cost of living is favorable at almost 5% lower than the national average, the same cannot be said for its tax policies. Incomes from pensions, IRA, and 401(k) are all taxed in the state at a rate of 4.75%.
9. Montana
Insider Monkey Score: 23
Cost of Living Index: 102.9
Health Rank: 26
Tax Friendliness: Moderate
Known as the Treasure State, Montana does not fare particularly well when it comes to its health ranking. With a position of 26, Montana’s health standards are worse than 50% of US states. While its cost of living is only 2.9% higher than the national average, tax policies are not favorable, making it land a spot on our list.
8. Wyoming
Insider Monkey Score: 22.5
Cost of Living Index: 92.4
Health Rank: 43
Tax Friendliness: Very Friendly
A popular tourist destination due to its national parks, Wyoming might not be the place to go for retirement. While its low cost of living and friendly tax policies certainly seem attractive, its poor health rank should be enough to keep senior citizens at bay.
7. South Carolina
Insider Monkey Score: 21.5
Cost of Living Index: 95.3
Health Rank: 37
Tax Friendliness: Friendly
Another health culprit, South Carolina takes a low spot on the health rankings list. Areas where it especially lacks include access, women’s health, and affordability, urging senior citizens to think twice before moving to the state. For those who do decide to move here given its lower than average cost of living should be sure to make an informed decision.
6. Florida
Insider Monkey Score: 21
Cost of Living Index: 100.7
Health Rank: 36
Tax Friendliness: Very Friendly
A typically popular retirement state, many retirees are leaving Florida due to its skyrocketing property prices and poor healthcare standards. That said, there’s no denying that Florida is tax-friendly for retirees as it enjoys no state income tax and the cost of living is only 0.7% higher than the national average.
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Disclosure: none. 15 Worst States to Retire in 2024 is originally published on Insider Monkey.