We all dream of finding that perfect retirement spot where our savings stretch forever, and we can kick back without any worries. Unfortunately, not all states are created equal because some places can drain your funds faster than you might expect. Let’s take a look at 18 spots that might just make you think twice before packing your bags.
The Cost of Sunshine
California may be the land of sun and surf, but it’s also home to some incredibly high prices. There’s no doubt that it’s a beautiful place, although living here can burn a hole in your wallet faster than you can say “Golden Gate.” If you’re looking for a retirement where you can stretch your dollars, you might want to pass on this pricey paradise.
Taxed to the Max
When you think of New York, you probably think of big city lights and, unfortunately, big taxes too. Between the income tax, sales tax, and property tax, your retirement fund might need its own bailout. New York is definitely not a place for retirees who want to keep their hard-earned cash.
Out of House and Home
As small as New Jersey might be, its property taxes are the highest in the nation. Owning a home here will cost you quite a bit because, in the Garden State, even your green gets pruned. Even trying to figure out the tax structure is complicated enough and not worth the price in your golden years.
Pinching Pensions
In Connecticut, you’ll have to deal with high living costs as well as pension tax. These prices make it pretty difficult to enjoy everything New England has to offer, as you’ll be worried about every penny. Besides, who wants to juggle finances when there’s supposed to be less stress and more peace?
Paradise at a Premium
Living in paradise isn’t cheap, and Hawaii is perfect proof of that, as everything here is expensive, whether that’s groceries or gas. For many people, it’s a dream spot, but unless you’ve got a treasure chest, it might just remain a vacation destination. There’s no point in spending your retirement worrying about the next credit card bill instead of enjoying the beach.
Cheerful, But Not Cheap
Massachusetts is rich in history but heavy on the wallet, as the state has a high cost of living with equally high expectations for your budget. Whether it’s healthcare or housing, practically everything is expensive, so you may want to skip it if you’re looking for a carefree retirement. You’ll find it hard to enjoy what should be your most relaxing years.
Where Taxes Are a Tradition
Illinois is struggling with its finances, so it’s no surprise that it’s passing those costs onto its residents, namely with high taxes. For retirees, this means a tighter squeeze on your funds than you’d like. After all, worrying about every penny is certainly no way to live, especially during your retirement.
Big Costs in a Small Package
Rhode Island is another state with living costs and property taxes, meaning that a budget-friendly retirement just isn’t an option here. You may want to look at more peaceful and affordable places for your golden years, as you certainly won’t get them here. On the plus side, at least it’s a nice-looking state.
Hello, Income Taxes
In Maryland, the highest costs come from those high-income taxes. While the state does have charm and crabs, if you want your retirement cash to go further, you might need to cast your net elsewhere. After all, there’s no fun in worrying over your finances when you should be enjoying crab cakes at the dock.
Shrinking Social Security
Vermont certainly looks nice, thanks to its stunning fall foliage and small towns, but be prepared to lose some of your Social Security through its tax policies. Many retirees find that their expected comfy cushion gets a little thinner here because of those Social Security taxes. It’s just not worth the price.
Spending on the Scenes
No amount of lush forests and urban cool can make living in Oregon any cheaper. You’ll have to deal with high-income tax here, as well as expensive living costs like housing and utilities. For retirees, this means your budget will probably be stretched to the max, and you’ll have to rethink that extra coffee or take a trip to the coast.
Chilly Weather, Hot Prices
Maine offers picturesque snowy scenes and cozy harbor towns, but heating costs will probably burn a hole in your wallet. As beautiful as a snowy winter can be, the price to keep your home warm can destroy even the smartest of retirement savings plans. Are those beautiful winters really worth the steep bills?
Freezing Temperature and Frozen Assets
The only thing colder than Minnesota’s icy winters are its frosty tax rates, which might chill the spirits of any unprepared retirees. High property and income taxes here mean you could end up paying more to the state than you planned. This will leave you with less for cozy indoor hobbies and warm winter getaways.
Pay More to Feel Better
Many retirees are drawn to Washington because of its no state income tax policy, but it makes up the difference in healthcare. Those doctor visits and prescriptions don’t come cheap, which seems a bit unfair when you thought you’d be getting a break. You won’t save as much as you’d think here, if at all.
Remote and Pricey
There’s no denying that Alaska is beautiful, but the cost of things here is quite unsightly. Whether you’re buying milk or medicine, living in such isolation means paying premium prices for basics. These costs can eat into your budget pretty quickly, and this can be quite difficult for any retirees on a fixed budget.
Popular But Pricey
It’s pretty easy to fall in love with Colorado’s stunning Rocky Mountains and be attracted to lively cities like Denver. Sadly, the cost of living here is already quite high, and prices are continuing to rise. You’ll find it pretty hard to manage your retirement budget when even a simple grocery trip can give you a heart attack.
Inheritance Tax on Your Mind
In Pennsylvania, planning your estate involves dealing with the state’s high inheritance tax, which might take a big chunk out of what you’re hoping to pass on. By the time that money reaches your loved ones, those gifts will have shrunk by quite a bite. No wonder it’s not the best state to leave a financial legacy.
Tax-Friendly but Health-Unfriendly
On the surface, Delaware seems like the perfect place since it has no sales tax and low property taxes. Unfortunately, healthcare costs can quickly undo those benefits, and they can quickly ruin your savings. When your health bills arrive each month, you may start to wonder if the tax breaks are worth it.
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