Not Kansas or Oklahoma: Experts warn this is the worst state for retirees to live in

For those nearing retirement, Seniorly’s report on the best and worst states for retirees may be a helpful resource as they plan their futures.

The researchers at Seniorly looked at nine factors to come up with their list of the best and worst states for retirees, centering on three categories: affordability, quality of life, and health care:

Before diving into the states that scored highest across these metrics, we will look at the states at the bottom of the list.

The worst states for retirees

Surprisingly for those who love New Jersey, the Garden State ranked last on the list, making it the worst state to retire in, based on Seniorly’s analysis. What led to such a low score?

Christine Healy, the researcher behind the report, noted that its poor placement was related to the state’s “high cost of living and income tax rate of 10.75% for top earners.” While income taxes are one factor that retirees should consider when deciding where to spend the last phase of their lives, it could be an attractive option for those who do not fall into this income group. The 10.75% rate is applied to incomes that surpass $1,000,000. In December 2023, the average value of Social Security checks sent to a retiree in the Garden State was $2,777.80, leading to an annual income from the program of $33,333—far below the $1,000,000 that would lead to the payment of high-income taxes. Additionally, when looking at the cost of living, New Jersey is the fifth most expensive state. For retirees, many of whom are on a fixed income, a high cost of living can reduce their purchasing power, particularly during times of high inflation, as they are left with few options to boost their income and recoup the buying power erased by higher prices. Nevertheless, the high tax rate may be overly punitive to New Jersey’s reputation as a destination for retirees, given that very few are likely to be subjected to those high state tax rates. On the other metrics, New Jersey finds itself “in the middle of the pack,” reports Healy, but since the state suffered so greatly in the ‘Affordability’ category, the other factors it scored better in were not enough to lift it out of last place.

Rounding out the bottom five states are Alabama, Kansas, Georgia, and Oklahoma.

Alabama ranked 48th in the ‘Health care’ category, which dropped its ranking significantly. The southern state leads the country in the percentage—71 percent—of Medicare members with three or more chronic medical conditions, according to data from the Center for Medicare and Medicaid. Seniorly also looked at “Medicaid spending on long-term care (such as nursing facilities and home health services)” for those 65 and older, but the state does not appear to be broken down by the number of Medicaid recipients. When comparing spending on long-term care to the number of seniors enrolled in the program, Alabama ranks 38th, based on data from the Kaiser Family Foundation.

Kansas, another member of the bottom five, was not singled out in one category. Instead, Healy noted that the state ranked poorly on the quality of life and health care indicators, which reduced its score to the extent that it ranked third worst overall.

The best state to retire in isn’t actually a state

Washington, D.C. topped the list because of the more generous Supplemental Security Income payments made to retirees in the country’s capital. Seniorly reported that the monthly Supplemental Security Income payments were $1,094. Data from the Social Security Administration (SSA) from 2023—the 2024 data is not yet available—puts the average for recipients 65 and older at $559.79. However, the more generous payments offered by the city for beneficiaries of SSI bump the amount received up to the second-highest sum in the country. SSI was not the only factor that contributed to the capital’s high position on the list, with Seniorly also citing the “availability of doctors and recreational opportunities.” The capital is a hub for medical research, and the concentration of many universities in the DMV (DC-Maryland-Virginia) boosts the number of doctors, easing access to medical services for retirees. Additionally, the city’s cultural centers and proximity to national parks, including the Chesapeake & Ohio Canal National Historical Park and Manassas National Battlefield Park, add to its appeal. In addition to the District of Columbia, states to top the list as great places to retire included Montana, Wyoming, Alaska, and Pennsylvania.

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