New York, the most expensive city to live in worldwide, has been named the least affordable state in the United States to retire in, according to WalletHub’s “2023 Best States to Retire” report. This study analyzed all 50 states in three main categories: affordability, quality of life, and healthcare.
The affordability metric was measured using data from multiple agencies, including the U.S. Census Bureau and the Council for Community and Economic Research. The ranking examined adjusted cost of living, tax-friendliness, annual cost of in-home services, and other relevant factors.
New York, despite ranking 10th in quality-of-life and 16th in healthcare, scored a dismal 50th for affordability. This is likely due to the second-highest adjusted cost of living, just behind Alaska, and the third-highest tax rate in the country.
Even with $1 million in retirement savings, living costs in New York can only be covered for about 14 years, which is a fraction of the typical retirement period that lasts 25 years or more.
Sadly, New Jersey, located across the Hudson River, is not a viable alternative either as it ranks as the second-most expensive state to retire in. The other states in the top 10 most expensive states to retire in are Vermont, Massachusetts, Maryland, Washington, Connecticut, Maine, Illinois, and Oregon.
There are several factors to consider while planning for retirement, and while the cost of living is important, proximity to family, access to healthcare, and social activities should also be taken into account. Alan Castel, a professor at the University of California, Los Angeles, and author of “Better with Age: The Psychology of Successful Aging,” said in WalletHub’s report, “It’s important to regularly review your budget and future financial commitments, re-evaluate spending habits, and utilize senior discounts to lower bills. It may also be useful to consider downsizing or minimizing certain costs that are no longer needed.”