According to a recent study from WalletHub, New York is projected to rank as the seventh-worst state in the US for retirement in 2024. New York outperformed several states, including Oklahoma, Rhode Island, Mississippi, New Jersey, and Kentucky, which ranked last.
WalletHub has released a ranking of all 50 US states, evaluating their retirement-friendliness across three important dimensions: affordability, quality of life, and health care. New York has been ranked as one of the worst states to retire due to its low affordability, despite its decent rankings in quality of life and health care.
According to apartment listing service RentCafe, the cost of living in New York is significantly higher than the national average. Overall, it is 30% higher, with housing costs being a staggering 78% higher than the rest of the country. Basic necessities like groceries and clothing are also more expensive, with each being around 12% higher than the national average.
New Jersey, located across the river, has been ranked as the second-worst state to retire according to WalletHub’s standards. This ranking is only one spot better than its position in 2022.
In a recent study conducted by interstate moving company United Van Lines, it has been revealed that New Jersey has once again topped the list for having the highest number of residents leaving compared to any other state in the US. This marks the sixth consecutive year that New Jersey has held this unfortunate distinction.
A recent study conducted by United Van Lines revealed that a significant 65% of their moves related to New Jersey were aimed at relocating residents out of the state, with retirement being the primary reason behind these moves.
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According to a spokesperson from United Van Lines, a significant portion of the company’s outbound moves from New Jersey are headed towards Florida, North Carolina, and South Carolina.
According to a report by mortgages firm Rocket Mortgage, New Jersey has the highest property taxes in the US, with an average effective property tax rate of 2.49%. In comparison, the national average stands at a mere 0.99%, while in New York, it reaches 1.72%.
WalletHub provided an explanation for why Florida was ranked as a top choice for retirees, but did not delve into the reasons behind the selection of the worst states for retirement. It is worth noting that Florida is often considered a “retirement paradise” for its appeal to individuals aged 62 and above, who are eligible for Social Security retirement benefits.
Florida has been ranked as the top state for retirement due to its highly favorable tax policies. With no state income, estate, or inheritance taxes, it offers retirees significant financial benefits.
Florida is a popular choice for retirees due to its attractive amenities and serene atmosphere. According to WalletHub, the state’s beautiful beaches, golf courses, and country clubs contribute to its appeal. Additionally, Florida boasts one of the lowest death rates for individuals aged 65 and older in the nation.
A study published by SmartAsset last year found that residents of New York City who earn a salary of $650,000 have the potential to save around $200,000 by opting for the sunny beaches of Miami instead of dealing with the high costs of living in the Big Apple.
Workers in New York face a significant tax burden, with an effective tax rate of 45% when considering federal, state, and local taxes. However, residents of Miami enjoy a slightly lower tax rate of 35%.
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