Top 5 States to AvoidRetiring in 2025: A Warning

🚫 The Five Worst States to Retire In 2023 🚫

When evaluating retirement destinations, we considered factors such as living costs, taxes, healthcare, weather, and overall quality of life. Based on this criteria, here are the five worst states to retire to in 2023:

1. Alaska

Alaska may not tax income, but its high living costs (ranking 47th) and poor broadband access make it a challenging retirement choice. The Last Frontier also has the coldest temperatures and the highest violent crime rate, making it a rough choice for many seniors relocating from the lower 48 states.

2. New York

Despite not taxing Social Security benefits, New York's overall costs of living (ranking 48th) and partially taxing retirement account withdrawals and pensions place it among the worst retirement destinations. Additionally, it has the worst skilled nursing facilities per capita.

3. Massachusetts

Massachusetts ranks poorly for retirement savings due to its high property taxes, taxes on most private pensions, and taxes on traditional IRA and 401(k) withdrawals. It also endures harsh winter temperatures, which many retirees would like to escape.

4. Hawaii

Hawaii deserves praise for its weather, beaches, and strong public hospital system. However, its exorbitant cost of living, taxes on retirement account withdrawals, and private pensions make it a costly retirement choice.

5. Mississippi

Mississippi ranks as one of the most affordable states for retirement due to its low housing costs and no taxes on retirement account withdrawals, private pensions, or Social Security. However, its poor quality of healthcare for seniors (ranking 48th) makes it one of the worst states for retirement.

📝 Expert Tips for Retirement Planning 📝

Planning for retirement and selecting the ideal retirement location involves many factors. Here are some expert tips to help you along the way:

Test Drive Your New Home: Before making a permanent move, try renting the location first for several months to explore the pros and cons and begin building a community.
Embrace the Overall Costs: When assessing a potential retirement location, don't focus solely on the cost of living or taxes. Instead, carefully consider all factors, such as property insurance, services, and general living costs.
Define Your Priorities and Deal-Breakers: Prioritize what matters most to you when deciding on a retirement destination, whether it's proximity to family, weather, amenities, or lack of extreme weather.

💬 Should You Seriously Consider These States? 💬

Though we've identified the five worst states to retire in 2023, it's essential to remember that everyone's needs and preferences are different. You might still be interested in retiring to one of these states if they align with your priorities or if you have a substantial retirement nest egg. Factors like preference for urban, rural, or suburban living, as well as proximity to family and friends, should also play a role in your decision. Additionally, retiring abroad may be something to consider.

By following these tips and considering your unique needs, you'll be well on your way to planning a successful and fulfilling retirement in a location that suits you best. And if you need further guidance, our website is filled with information on retirement planning, including resources on how much you need to retire comfortably and how to save on healthcare costs in retirement.

After considering the high living costs and poor broadband access in Alaska, many seniors might want to avoid relying solely on their retirement finance in this state. In the process of retirement planning, it's important to take into account the tax implications of retiring in states like New York, where retirement account withdrawals and pensions are partially taxed.