New York is set to become the seventh-worst state in the United States for retirees in 2024, according to a recent study conducted by financial advisory site WalletHub. The study assessed all 50 states based on three key dimensions: affordability, quality of life, and health care.
While New York secured the 10th spot in quality of life and 12th in health care, it clinched the undesirable title of the least affordable state for retirees. WalletHub attributed this to the state's high cost of living, with expenses soaring 30% above the national average. Housing costs alone are a staggering 78% higher than the rest of the country, and basic necessities such as groceries and clothing are approximately 12% more expensive than the national average, according to apartment listing service RentCafe.
States ranking worse than New York include Oklahoma, Rhode Island, Mississippi, and Kentucky, with New Jersey landing in the last place. New Jersey has also earned the second-worst spot for retirement, one position better than its 2022 ranking.
A recent study by moving company United Van Lines revealed that New Jersey has experienced the most residents leaving the state for six consecutive years, with 65% of moves involving retirees. Notably, 32% of these outbound moves were destined for Florida, North Carolina, and South Carolina.
The high property taxes in New Jersey, boasting the highest effective property tax rate in the US at 2.49%, contribute to its unfavorable retirement conditions. The national average stands at 0.99%, while New York's rate is 1.72%, according to mortgage firm Rocket Mortgage.
WalletHub's study did not delve into the specific reasons why these states are considered unfavorable for retirees, but it highlighted Florida as the top destination for retirement. The Sunshine State's lack of state income, estate, and inheritance taxes, combined with its attractive amenities such as beaches, golf courses, and country clubs, earned it the title of "retirement paradise."
Colorado and Virginia emerged as the second and third-best states to retire, according to WalletHub. Colorado's appeal lies in its taxpayer-friendly conditions, with no estate or inheritance taxes and a concentration of high-ranking geriatric hospitals. Virginia, although not particularly affordable, ranked 11th in this category, offering excellent elder abuse protections and a low crime rate, according to the study.
The findings corroborate a SmartAsset study from the previous year, indicating that New York City residents earning a $650,000 salary could save around $200,000 by relocating to Miami. The allure of lower taxes and a more relaxed environment has also attracted notable figures like Amazon's Jeff Bezos, who recently chose Florida's Indian Creek island for his new residence.
