The 10 most expensive U.S. states to retire in — California didn't make the list (2024)

FAQs

The 10 most expensive U.S. states to retire in — California didn't make the list? ›

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

San Diego. A warm year-round climate and access to everything you could possibly need put San Diego at the top of the list of best places to retire in California. You can find 55-plus communities, swanky condos, or a house to fit your lifestyle.

Kentucky ranks as the worst state to take up retirement in 2023, according to a WalletHub study. This year, the state landed in last place which was occupied by New Jersey in 2022. WalletHub ranked all 50 U.S. states based on three key categories: affordability, quality of life and health care.

The top five states to retire, according to the site, are Virginia, Florida, Colorado, Wyoming and Delaware, in that order. You can see the rest of the state rankings in WalletHub's report. WalletHub uses 47 “key indicators” in three areas — affordability, quality of life and healthcare — to calculate its rankings.

Based on funded ratio, Wisconsin, Washington, and South Dakota have the best funded public pension plans in America. The worst funded plans are in Illinois, Kentucky, and New Jersey.

What state are most California moving to? ›

Texas is currently the number one destination state for those leaving California.

These were the top destinations for Californians leaving:

Texas (82,235 people in Texas had moved from California in the last year) Arizona (59,713) Nevada (47,322) Washington (46,791)

Which states did they move to? The most common destinations for California migrants were Texas, Arizona, and Nevada. Texas had the most California transplants from 2020 to 2021: 105,000.

If you have a low living cost and can supplement your income with a part-time job or a generous pension, then retiring on $3,000 a month is certainly possible.

“In addition to inflation, housing prices and increasing costs of living in Florida, retirees are also leaving for other reasons,” says Dutch Mendenhall, Founder of RAD Diversified REIT. “Higher auto and home insurance along with a 7% sales tax on already high-inflation goods can put a strain on retirement income.”

Countries Natixis ranked as secure retirement locations are mostly concentrated in Europe but also include New Zealand and Australia. The top three countries in the rankings are Norway, Switzerland and Iceland, all of which have life expectancies of 83 years, compared to 77 in the U.S. and the world average of 72.

Overall, retiring in California can be a great decision for many people due to the state's warm climate, tax benefits, and abundant recreational opportunities. California offers a wide range of activities and attractions for retirees, from beaches and national parks, to cultural events and sporting events.

Social security benefits are not taxable by the State of California. Social security benefits may be taxable by the federal government. Railroad sick pay is also not taxable by the State of California. It is taxable by the federal government unless it is a payment for an on the-job-injury.

What states tax Social Security? ›

For the 2022 tax year, 11 states tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah and Vermont. All other states and the District of Columbia do not tax the payments.

Hawaii. Hawaii is truly a paradise, but it is also the most expensive state in America to live in. The cost of living in Hawaii overall is 86% higher than the national average, and the cost of housing in Hawaii is a jaw-dropping 207% above the national average.

The cost of living in California is 39% higher than the national average. Housing is 102% higher than the national average, while utilities are 22% higher. When it comes to basic necessities such as food and clothing, groceries are around 10% higher than in the rest of the country, while clothing costs 10% higher.

New Mexico has the nation's lowest overall health care costs but ranks No. 48 for accessibility. The state has been slow to alleviate staffing needs to address primary care provider shortages. Vermont is the most expensive state for health care.

The latest edition of the Best States rankings project finds a new No. 1 and a strong showing from the West and Midwest in the top 10. Utah has taken the No.

These are the states with the highest monthly benefits, higher than the average of $841 per month: New Jersey: $1689 per month. Connecticut: $1685 per month. Delaware: $1659 per month.

Maine topped The Motley Fool's list of best U.S. states to retire, with high marks for quality of life, safety, and health care cost and quality. The state has the highest percentage of residents over age 65, so retirees can find like-minded neighbors who enjoy the outdoors, natural beauty, and reliable health care.

Why are so many people leaving California? ›

Increasingly high costs of living, housing, and transportation coupled with an increase in crime, pollution, and congestion has caused many people to relocate to more affordable cities and states. Businesses have also been on the move out of California.

The main reasons people say they want to leave California are taxes and cost of living, he said. And, to some extent, people leave because their kids moved out of state because they couldn't afford to live in California and buy a house, he said.

Palm Springs' next-door neighbor is Palm Desert. Known as a vacation destination, Palm Desert is no stranger to luxury. Because of its beautiful golf courses, resorts, and retirement communities, Palm Desert is also a well-known retirement town. It even scored the highest in the senior population category.

Is California a retirement friendly state? California is a great place to live for anyone looking to maximize their quality of life! California's mild and sunny weather, beautiful beaches, and exciting cultural opportunities mean you'll always have something to do.

Top states residents are leaving

The annual 2022 United Van Lines National Movers study is out! But it wasn't good news for New Jersey or New York. A similar report from United Van Lines showed New Jersey as the top outbound state, followed by Illinois, New York, Michigan, and Wyoming.

The California Exit Tax proposes that if you or your business have been a full-time resident of the state of California and you make $30 million per year (or $15,000,000 if a married taxpayer is filing separately from their spouse), any money that you make from business, income or investments made in the state would be ...

Rather, Alabama is the most affordable state to retire in, according to WalletHub's “2023 Best States to Retire.” The analysis compared all 50 states across three key categories: health care, quality of life and affordability.

Hawaii is the top state for healthcare, according to U.S. News & World Report's annual best states rankings published May 2. The overall state ranking is based on 71 metrics across eight categories, including healthcare, education and economy.

What state is best for elderly to live? ›

Maine topped The Motley Fool's list of best U.S. states to retire, with high marks for quality of life, safety, and health care cost and quality. The state has the highest percentage of residents over age 65, so retirees can find like-minded neighbors who enjoy the outdoors, natural beauty, and reliable health care.

Ecuador. If you're looking for a country where you can retire outside the US comfortably with $800 per month and experience one of the most ecologically diverse places in the world, then Ecuador might be for you. The go-to city for US retirees in Ecuador is Cuenca, which also happens to be a UNESCO World Heritage site.

Florida was the most popular destination, followed by North Carolina, Michigan, Arizona and Georgia. About 1 in 8 retirees who relocated out of state reported doing so to cut housing expenses, up from 1 in 15 in 2019.

Among those looking ahead to retirement, many expect to step away from work at age 65, according to the 2023 Retirement Confidence Survey. Although 65 is the anticipated median retirement age, workers report retiring at a median age of 62, the survey found.

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

There are nine states with no income tax – Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, One of those states, however — New Hampshire — does tax dividends and interest.