There are better and worse places to retire, but where you choose to retire is a personal choice that depends on many things. Alaska is the biggest state in the US and also thought to be the worst place to retire. Bank rate’s 2024 study of the best and worst places to retire in the U.S. shows that Alaska is once again the worst state for retirees.
Bank rate looked at all 50 states carefully and ranked them based on five main factors that were given different amounts of weight to show how important they were. The following groups are
- Affordability (40% of total score): Examined various financial factors, including local and state sales taxes, overall cost of living and average annual property taxes in each state.
- Overall Well-Being (25% of total score): Evaluated elements such as the number of adults over the age of 62 per 100,000 residents, as well as access to basic services such as food and health care.
- Quality and Cost of Health Care (20% of total score): focused on state-level health care spending and the performance of each state’s health care system.
- Weather (10% of total score): considered climate data, including average annual temperatures and the frequency of natural disasters such as tornadoes, earthquakes and hurricanes.
- Crime (5% of total score): Reviewed crime statistics, including property crimes and violent crimes per 100,000 people.
Bank rate used information from a number of trustworthy sources, such as the National Oceanic and Atmospheric Administration (NOAA), the Council for Community and Economic Research, the U.S. Census Bureau, and the Tax Foundation, to make this list.
Why Alaska is the worst state to retire in
Alaska, which is very low on the list of places with bad weather, has a wide range of temperatures all year long. In the summer, it can be anywhere from 45 to 75 degrees Fahrenheit. In the winter, it can get as cold as -10 degrees Fahrenheit.
Alaska also makes it hard for retirees to pay their bills, especially those who are on fixed incomes. Rent Café says that living costs in Alaska are about 30% higher than in the rest of the country.
The cost of housing is about 17% more than the national rate, and the cost of utilities and health care is about 50% more. Also, based on what part of the state you are in, it may be hard to get groceries, and because the area is so remote, they can be expensive.
Alaska is thought to be tax-friendly for retirees, which is a good thing. The state doesn’t tax income, inheritance, or estates. It also doesn’t tax Social Security or pension payments, possibly because the people who live there need every penny to live comfortably.
Alaska isn’t the only state with these issues, though. The other states that are low on the list all have problems with cost. Some of the worst places to retire are states like New York, Washington, and California, which are known for having high costs of living.
However, the higher cost of living shouldn’t stop people who want to retire from considering these states. Instead, you might need to be more careful with your money to make sure you have enough saved for retirement.
There are many tools out there that can help with this kind of planning, like CNBC Make It’s Retirement Calculator, which gives an idea of how much someone may need to save for retirement based on their current age, income, savings, and the age they want to retire.
The cost of living is a very important thing to think about when choosing where to retire, but it’s not the only thing. Things that don’t have to do with money, like being able to join in social and community events, are also important.
People often forget about these things, but they can have a big effect on the quality of life in retirement. In its report, Bank rate stresses how important these things are.
The author of “In Control at 50+: How to Succeed in the New World of Work,” Kerry Hannon, says that having a sense of community and human connection is very important for good aging. She says, “Isolation and loneliness are not where you want to be. Find your community.”