The 10 worst states for retirees

By Robert Powell, MarketWatch

BOSTON (MarketWatch) — Plenty of folks are aware of the best states for retirees. But what are the 10 worst states in which to spend your golden years?

People of Illinois, California, New York, Rhode Island, New Jersey, Ohio, Wisconsin, Massachusetts, Connecticut and Nevada — you probably already know the answer.

The list, with Illinois leading the pack, comes from website TopRetirements.com. According to John Brady, president of TopRetirements.com, the 10 states earn this dubious distinction largely because of three factors: fiscal health, taxation, climate. See the worst-state rankings at TopRetirements.com .

Video: Click to Play

Worst retirement states

Illinois and California top the list of the worst states to retire to, according to TopRetirements.com. Marketwatch’s Robert Powell explains the factors that landed these states and others on the list.

As for fiscal health, six of the 10 worst states for retirees on TopRetirements.com’s list were among those just identified by a Pew Center for States report as being in “fiscal peril.”

The report, “Beyond California: States in Fiscal Peril,” showed that “some of the same pressures that have pushed California toward economic disaster are wreaking havoc in a number of other states, with potentially damaging consequences for the entire country.” 

Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin joined California as the 10 most troubled states, according to Pew’s analysis. Read the Pew Center for States report.

Of note, TopRetirements.com’s Brady suggested that retirees and would-be retirees might want to avoid states in fiscal peril because these locales might be expected to face decreasing services and increasing taxation.

States of disunion

Topping his website’s list, Illinois’s fiscal health could be the worst of any state, observed Brady. “It even borrowed money to fund its pension obligations,” he said. As for California, he said the Golden State — though it does have a warm climate — is expensive and its finances are in disarray. What’s more, he added, it has paid some bills with vouchers.

New York wasn’t mentioned as being in fiscal trouble by the Pew Center, but it does have “very high taxes, including property taxes.” In fact, Brady said New York has the second-highest tax burden and fifth-highest per capita property taxes. Plus, he said, the Empire State has a “dysfunctional state legislature.” As if that wasn’t bad enough, it’s terrifically expensive to live in New York. The only benefit to living in New York, he said, is that pensions are exempt from income tax.

As for Rhode Island, Brady said it’s probably the worst-off state in the Northeast from a financial viewpoint. It also has high taxes, though he noted that the state does boast some great places to live.

New Jersey, according to Brady’s analysis, has the highest property taxes in the U.S., as well as the highest total tax burden of any state, as reported in a 2008 Tax Foundation report. Plus, New Jersey has serious pension-funding issues, Brady noted. States with the greatest tax burdens after New Jersey were New York, Connecticut, Maryland, Hawaii, California, Ohio, Vermont, Wisconsin and Rhode Island, joined by the District of Columbia.

Read the Tax Foundation report.


MarketWatch

A downtown Chicago street corner in the midst of a January 2009 blizzard — the type of weather that contributed to poor rankings for not just Illinois but Wisconsin and Ohio.

According to Brady, Ohio has high taxes and high unemployment (9.9% in October). Plus, it has cold winters.

Of the 40 largest cities in the United States, Milwaukee has the coldest winter weather, based on normal daily temperatures, according to Current Results, a website that tracks weather trends. The lakeside Wisconsin city’s daily winter mean temperature is 24.1 degrees Fahrenheit. But fellow Great Lakes metropolis Cleveland is the fourth-coldest U.S. city, with a daily winter mean temperature that’s not much higher at 28.4 degrees Fahrenheit.

Source:  Market Watch

About Ask Marion

I am a babyboomer and empty nester who savors every moment of my past and believes that it is the responsibility of each of us in my generation and Americans in general to make sure that America is as good or even a better place for future generations as it was for us. So far... we haven't done very well!! Favorite Quotes: "The first 50 years are to build and acquire; the second 50 are to leave your legacy"; "Do something that scares you every day!"; "The journey in between what you once were and who you are becoming is where the dance of life really takes place". At age 62 I find myself fighting inoperable uterine Cancer and thanks to the man upstairs and the prayers from so many people including many of my readers from AskMarion and JustOneMorePet... I'm beating it. After losing our business because of the economy and factors related to the re-election of President Obama in 2012 followed by 16-mos of job hunting, my architect-trained husband is working as a trucker and has only been home approximately 5-days a month since I was diagnosed, which has made everything more difficult and often lonely... plus funds are tight. Our family medical deductible is 12K per year for two of us; thank you ObamaCare. But thanks to donations from so many of you, we are making ends meet as I go through treatment while taking care of my father-in-law who is suffering from late stage Alzheimer's and my mother-in-law who suffers from RA and onset dementia as well as hearing loss, for which there are no caretaker funds, as I continue the fight here online to inform and help restore our amazing country. And finally I need to thank a core group of family, friends, and readers... all at a distance, who check in with me regularly. Plus, I must thank my furkids who have not left my side through this fight. You can see them at JustOneMorePet.
This entry was posted in Changing Winds, Economy and Money, Health and wellness, Knowledge Is Power and tagged , , , , . Bookmark the permalink.

2 Responses to The 10 worst states for retirees

  1. Pingback: Best Places to Move… Off the Grid | askmarion

  2. Pingback: ObamaCare… the Gift that just keeps on Giving~ | askmarion

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s