If you’re in your 50s and have at least something saved for retirement, congratulations: You’re in better shape than almost a third of older Americans.
Now stop celebrating. Even if you have a substantial nest egg, your savings could be quickly whittled down by a number of factors — and one of the biggest is geography.
Deciding where to retire shouldn’t be something you do based on weather or even proximity to kids — let them do the driving — they’re more mobile than you anyway.
If you want to retire rich, and maintain that wealth, you should be looking at important regional factors, such as taxes, local living expenses, and the affordability and accessibility of health care.
To make the search easier, GOBankingRates investigated all 50 states on those three components. We surveyed:
- Taxes: local rates of Social Security income, estate, inheritance, property and sales taxes
- Living expenses: home values, listing prices, local deposit rates and a cost-of-living index
- Health care: average individual insurance premiums, average Medicare payment and the health of seniors who take advantage of regional health care
The result: the best and worst states for retiring rich. Read on for the 10 best and see where you should be moving to when you retire.
Related: 10 Best and Worst Things to Do When Looking for a Place to Retire
1. New Hampshire
New retirees will have a hard time finding as good a tax haven as New Hampshire, and that’s largely why it topped our list of the best states to retire rich. The Granite State boasts no sales tax, no Social Security income tax, no estate tax and no inheritance tax.
What doesn’t play in the state’s favor is its high cost of living, bolstered by higher-than-average home prices and middling deposit account rates — and the second-highest median property tax in the country.
Still, New Hampshire has one other thing going for it, and it’s a big one: excellent health care. Though residents have to face higher-than-average monthly premiums, Medicare payouts are better than average, and seniors in the state are among the healthiest in the country, according to the United Health Foundation.
2. Delaware
Delaware is another state with low tax rates for retirees, which pushed it to second place on our list. Residents enjoy no sales tax, no Social Security tax and no inheritance tax, though, unlike New Hampshire, Delaware does have an estate tax — 16 percent. Also unlike New Hampshire, however, property taxes in Delaware remain low: At just 0.43 percent of a home's value, the state has the fourth-lowest median property tax in the nation.
In terms of health care, the average amount of Medicare paid out to Delaware residents is among the highest, though the average premium is on the pricier end. Delaware seniors are on the whole healthy — the state is ranked 15th in the country for that.
The only category for which Delaware took a hit in our study was living expenses, with higher-than-average home prices and cost-of-living scores.
3. Idaho
Idaho’s extremely low living expenses catapulted it to third in our study, with one of the lowest cost-of-living scores in the nation — only Mississippi and Tennessee are cheaper. Retirees also have access to higher-than-average local deposit rates to grow their savings and low local tax rates; residents pay no Social Security, estate, or inheritance taxes and fairly low sales and property taxes.
Idaho was bumped out of the top two spots due to less-stellar health care scores: The state is middle of the line (24th place) when it comes to its seniors’ health, and its Medicare payouts are only average. Still, the state’s average individual insurance premiums are low — among the 10 cheapest in the nation.
See the rest of the story at Business Insider