FINANCE
The best places to retire in the US in 2024
These are the best states for retirees living on a fixed income as costs for older Americans have surged over the last two years.
As each year passes, the Baby Boomers generation (born between 1946 and 1964) is retiring in mass. . Due to the rising cost of living across the United States, certain states are proving to offer a more comfortable life for seniors. Retirees offered a private retirement savings account (such as a 401(k) or Roth IRA) or a public pension are in a better financial position than those who rely solely on Social Security when they leave the workforce.
A report by The Senior Citizens League reveals that over 66% of older adults have experienced a 10 percentincrease in monthly expenses. However, the Cost-of-Living Adjustment (COLA) that will be applied to benefits starting from January will only be 3.2 percent. According to Mary Johnson, a Social Security and Medicare policy analyst at the organization, the formula used to calculate COLA does not adequately consider some of the items that have seen the highest price increase, including housing, motor vehicle insurance, the cost of hospitals, and home care for invalids.
When selecting a place to retire, seniors consider various factors, such as personal preferences, proximity to family, and community ties. However, it’s important to evaluate the living standards available to older people in the chosen location. Financial news site Wallet Hub ranked states based on three categories: Affordability, Quality of Life, and Health Care. The highest-ranking states overall were Virginia, Florida, and Colorado, while Kentucky, New Jersey, and Mississippi scored the lowest.
Virginia ranked the best state for retirees
Virginia has been ranked as the number one state in the US, mainly due to its excellent healthcare system and high quality of life for retirees. Virginia ranks eleventh in the country for healthcare access and quality of life, and sixteenth in terms of affordability. However, the state’s health department reported in 2022 that 7.1 percent of those over sixty live in poverty, and 9.4 percent are food insecure. Despite being lower than the national averages, these figures indicate that residents of Virginia still face significant challenges. For almost one in ten seniors who struggle to access enough food, Virginia’s top ranking may seem unjustified.
Florida ranks high on affordability and quality of life
Retirees living in Florida can benefit from the state’s affordability since the government doesn’t tax income. Social Security beneficiaries who work part-time can keep more of their earnings compared to other states where income is subject to both state and federal taxation.
Nevertheless, many senior households live in poverty and see their purchasing power disappear year after year. In 2022, the Department of Elder Affairs reported that 13 percent (up from 11 percent in 2022) of owner-occupied households and nearly a third of renters over 65 faced a high-cost burden.
According to recent findings, Florida, also known as the Sunshine State, ranks ninth in affordability, fourth in quality of life, and twenty-eighth in terms of healthcare, which puts it behind Virginia. However, the study also found that a quarter of the senior population in the state is “medically underserved,” with 11 percent living in areas where residents lack access to medical care. Although Florida is still considered a good option for retirees, 23 percent of seniors in Florida live at or under the poverty level.
Colorado takes the number the third spot
Colorado has secured the third position in the ranking. It stood fourteenth in terms of affordability and twenty-seventh in terms of quality of life. Wallet Hub researchers analyzed the healthcare metric, including access, quality, and outcomes, to determine how healthy the population is. Colorado ranked fifth in this metric, which is higher than the other two states in the ranking, and only surpassed by Minnesota, Massachusetts, Connecticut, and Hawaii.
In terms of affordability, the state came in fourteenth, and in terms of quality of life, it landed in twenty-seventh place. Around 7.2 percent of people over the age of 60 in Colorado live in poverty, and 13 percent are food insecure. On the healthcare metric, researchers at Wallet Hub looked at both access, quality, and outcomes (i.e., how healthy the people are).