Retirement is a significant life milestone that often prompts individuals to consider where they want to spend their golden years. While personal preferences vary, affordability remains a top priority for many retirees. In this quest for financial comfort, Bankrate, a leading consumer financial services company, has undertaken a comprehensive analysis to determine the most and least affordable states for retirees in 2023.
Bankrate’s assessment drew data from a range of sources, including the Tax Foundation and the Council for Community and Economic Research’s 2023 cost of living index, to provide insights into the financial viability of each U.S. state for retirees.
A Surprise Leader: West Virginia
In a surprising twist, West Virginia emerges as the most budget-friendly state for retirees in 2023, according to Bankrate’s “Best and Worst States to Retire” list. This Appalachian gem offers retirees a compelling proposition with its low cost of living and a relatively modest tax burden. Beyond its affordability, West Virginia scored impressively in categories such as overall well-being, favorable weather, and low crime rates, earning it the esteemed title of the third-best state overall for retirees.
Florida’s Changing Fortunes
Traditionally, Florida has held a strong allure as a retirement destination, thanks to its sunny climate and vibrant lifestyle. However, for the second consecutive year, Florida finds itself outside the ranks of the most affordable states for retirees. In the affordability category, the Sunshine State slipped to the 35th position, a notable drop from its 18th-place ranking in the preceding year. The primary factor behind this shift is the significant influx of residents into Florida during 2022, as reported by the National Association of Realtors. This population surge has driven up housing costs, impacting the state’s affordability ranking.
Least Affordable States to Retire in 2023
Bankrate’s analysis also identified the states that present the greatest financial challenges for retirees in 2023. The least affordable states for retirement, in descending order, are:
- West Virginia
- Mississippi
- Iowa
- Alabama
- Missouri
- Oklahoma
- Indiana
- Kansas
- Wyoming
- Arkansas
Considerations Beyond Cost
While affordability is a critical factor when choosing a retirement destination, retirees must also take into account other variables such as proximity to family and accessibility to medical facilities. Moreover, as noted by personal financial expert Shang Saavedra in Bankrate’s research, it is essential to have a clear understanding of one’s retirement savings. This knowledge forms the foundation for making informed decisions that align with one’s desired retirement lifestyle.
In summary, Bankrate’s 2023 rankings provide retirees with valuable insights into the financial landscape of different states. Whether seeking an affordable retirement haven or exploring other lifestyle considerations, these rankings serve as a helpful resource for those embarking on this exciting new chapter of life.
