States to Avoid Retiring in 2024
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If you’re thinking of retiring in a new state, there are some crucial aspects to consider. For many retirees on a fixed income, the cost of living and taxes are critical factors. Some states tax retirement income. Aside from financial considerations, other factors such as the weather and leisure activities should be considered.
Choosing where to retire has far-reaching consequences that go beyond climate change. It has an impact on your taxes, living expenses, and access to important services such as healthcare. To help you make an educated decision, here are 12 states you should avoid retiring in this year:
Washington
While Washington has breathtaking natural beauty with its parks, lakes, and mountains, it is also one of the most costly states for in-home care, with a typical monthly cost of $5,815. Housing costs are likewise high, with property values skyrocketing in cities such as Spokane, where prices have risen by 60% recently.
California
Despite its sunny environment, California is the third most expensive state to live in, with the highest gas tax in the country and a median house price of $762,245. Groceries are also expensive, and inhabitants endure natural calamities like wildfires and earthquakes.
New York
New York has exciting cultural events but has high living costs. It is the second most expensive state, with the average property price in Manhattan being $2.2 million. Even upstate areas, like as Albany, have much higher house costs than other places.
Oregon
Oregon is known for its gorgeous landscape and is the fourth most expensive state to live in, with average property prices of $511,447. The state also has one of the highest income tax rates, with the majority of retirement income taxed at 9.9%.
New Mexico
New Mexico taxes Social Security and other forms of retirement income. It also has the highest crime rate in the country and difficult high-altitude circumstances that can result in altitude sickness.
Illinois
Despite not taxing 401(k), IRA, or pension contributions, Illinois has the nation’s highest total tax rate. Winters in Illinois may be severe, especially in Chicago, which receives an average of 36.7 inches of snowfall each year.
Alaska
Alaska’s long, bitter winters and the nation’s second-highest crime rate make it less tempting to retirees. Its distant location also means higher pricing and fewer supermarket alternatives.
Louisiana
Louisiana has the country’s third-highest crime rate and performs low in elder healthcare. Summers are exceedingly hot and humid, which makes many retirees uncomfortable.
Rhode Island
Rhode Island had high cost of living and in addition most retirement sources of income such as the Social Security was taxed. It also has some forms of estate tax whereby the exemption is less than $2 million, and therefore not so friendly on the aspect of taxation for retirees.
New Jersey
No wonder New Jersey is among the most costly states, mainly dealing with expensive real estates. And it has poor ratings under the retiree healthcare and quality of life indices.
Maryland
They rank Maryland as being the eighth most expensive state to live in and even impose high income taxes to retirees. However, it is rather expensive to live there now; perhaps, it is different because the landscape is completely different.
Maine
Maine is home to many senior people but the tax on property and estates in this state is higher than the average tax rate across the United States of America. Third, it experiences cold winters which is not suitable for people especially the retirees.
Therefore, when choosing a state during your planning for retirement, the following criteria will help you choose a favorable state depending on your financial position.
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