10 best states for retirement
Also see the 2011 list of Best States for Retirement.
"Best of" lists are usually based on subjective points. When choosing our 10 best and worst states to retire, we went with the objective. Earlier this week, MoneyRates.com published a list of the 10 worst states for retirement. This list was based on a combination of quantifiable factors including:
- Economics (factoring in cost of living, unemployment, and average state and local tax burden)
- Climate
- Crime rate
- Life expectancy
Now, the good news. MoneyRates.com has compiled a list of the 10 best states for retirement. You'll find the MoneyRates.com list is not all geared to one set of priorities -- it isn't, for example, a list of 10 warm-weather states -- but instead should have something for everybody.
Some of the choices might surprise you, but when you look over the criteria, you can decide which states have the most appealing characteristics for your tastes. Then join the discussion on the best and worst states for retirement on the MoneyRates.com blog.
Data sources: ACCRA Cost of Living Index, the Bureau of Labor Statistics, the Tax Foundation, the National Oceanic and Atmospheric Administration, MSNBC, the US Census Bureau, Bloomberg Businessweek
No. 10: Idaho
Economic factors: Cost of living is 92 percent of the national average, unemployment is at 8.8 percent, and the average state and local tax burden is 10.1 percent.
Climate: Average monthly temperatures range from 23.6 degrees in January to 66.24 degrees in July.
Crime rate: 43rd in the nation in violent crime, 45th in property crime.
Life expectancy: 77.9 years
Reason for high rank: With its low crime rates, this is a great state if you are concerned about security, and the cost of living is cheap as well. Just watch out for the climate and the tax burden -- both can be a little rough.
No. 9: Vermont
Economic factors: Cost of living is 97 percent of the national average, unemployment is at 6 percent, and the average state and local tax burden is 10.3 percent.
Climate: Average monthly temperatures range from 16.41 degrees in January to 67.38 degrees in July.
Crime rate: 49th in the nation in violent crime, 44th in property crime.
Life expectancy: 78.2 years
Reason for high rank: If you like cooler weather, then you'll be able to appreciate Vermont for that plus its low crime rates and high life expectancy. The high tax burden is a drawback, however.
No. 8: Connecticut
Economic factors: Cost of living is 126 percent of the national average, unemployment is at 8.9 percent, and the average state and local tax burden is 11.1 percent.
Climate: Average monthly temperatures range from 25.96 degrees in January to 71.52 degrees in July.
Crime rate: 41st in the nation in violent crime, 41st in property crime.
Life expectancy: 78.7 years
Reason for high rank: If you want to be reasonably close to a major metropolitan area like New York or Boston, but with lower crime rates, then Connecticut might be a good option. It isn't cheap though -- both the cost of living and the tax burden are on the high side.
No. 7: Utah
Economic factors: Cost of living is 97 percent of the national average, unemployment is at 7.2 percent, and the average state and local tax burden is 9.6 percent.
Climate: Average monthly temperatures range from 25.93 degrees in January to 72.51 degrees in July.
Crime rate: 44th in the nation in violent crime, 19th in property crime.
Life expectancy: 78.7 years
Reason for high rank: Utah shapes up as the pick of the Southwestern states, on the strength of a low violent crime rate, moderate cost of living, and one of the highest life expectancies in the nation.
No. 6: Virginia
Economic factors: Cost of living is 99 percent of the national average, unemployment is at 7.0 percent, and the average state and local tax burden is 9.8 percent.
Climate: Average monthly temperatures range from 34.48 degrees in January to 75.10 degrees in July.
Crime rate: 40th in the nation in violent crime, 39th in property crime.
Life expectancy: 76.8 years
Reason for high rank: The mid-Atlantic coast region offers mild temperatures, and unlike some other states in the region, Virginia also features low crime rates and a relatively healthy economy.
No. 5: Iowa
Economic factors: Cost of living is 93 percent of the national average, unemployment is at 6.8 percent, and the average state and local tax burden is 9.3 percent.
Climate: Average monthly temperatures range from 17.84 degrees in January to 73.76 degrees in July.
Crime rate: 32nd in the nation in violent crime, 36th in property crime.
Life expectancy: 78.3 years
Reason for high rank: Iowa represents the Midwest well, with a combination of a low cost of living and a healthy economy, plus the life expectancy is fairly high.
No. 4: North Dakota
Economic factors: Cost of living is 95 percent of the national average, unemployment is at 3.6 percent, and the average state and local tax burden is 9.2 percent.
Climate: Average monthly temperatures range from 7.9 degrees in January to 68.7 degrees in July.
Crime rate: 47th in the nation in violent crime, 49th in property crime.
Life expectancy: 78.3 years
Reason for high rank: One of the real surprises in this study, North Dakota's frigid climate must be healthy because life expectancy is among the highest in the nation. Also, North Dakota's crime rates are among the lowest in the US.
No. 3: South Dakota
Economic factors: Cost of living is 91 percent of the national average, unemployment is at 4.4 percent, and the average state and local tax burden is 7.9 percent.
Climate: Average monthly temperatures range from 16.11 degrees in January to 72.47 degrees in July.
Crime rate: 46th in the nation in violent crime, 50th in property crime.
Life expectancy: 77.7 years
Reason for high rank: You might expect South Dakota to grade out similarly to North Dakota, and it has, but your dollar will go farther in South Dakota thanks to a lower cost of living and tax burden. Also, the climate is just a bit milder.
No. 2: Hawaii
Economic factors: Cost of living is 167 percent of the national average, unemployment is at 6.3 percent, and the average state and local tax burden is 10.6 percent.
Climate: Average monthly temperatures range from 73 degrees in January and February to 82 degrees in August.
Crime rate: 39th in the nation in violent crime, 3rd in property crime.
Life expectancy: 80.0 years
Reason for high rank: A natural choice as a warm-weather site, Hawaii also features the highest life expectancy of any state. Make sure your retirement plan is well-funded, though: The cost of living is the highest in the U.S. Maybe you can't have everything in paradise.
No. 1: New Hampshire
Economic factors: Cost of living is 89 percent of the national average, unemployment is at 5.8 percent, and the average state and local tax burden is 7.6 percent.
Climate: Average monthly temperatures range from 18.17 degrees in January to 67.83 degrees in July.
Crime rate: 48th in the nation in violent crime, 48th in property crime.
Life expectancy: 78.3 years
Reason for high rank: For the frugal New Englander in you, New Hampshire's cost of living and tax burden are among the lowest in the U.S. Crime is also low, and life expectancy high. Just bring plenty of sensible clothes, because climate was the one criteria on which New Hampshire did not score well.
This list might make you think twice about where you decide to retire. However if you decide to stay put, be sure to explore other ways of boosting your income – including moving your money to the best savings accounts, money market accounts and other deposit accounts.
For the full list of states, check our blog post Best and worst states for retirement: The complete list.
Joe
5 August 2011 at 10:53 am
Both of your comments have value but you're both missing the point. Maybe your just a bit insulted. I don't know about your personal inklings but this list does need to be understood. Like the title stated; 10 best states for retirement. Not the ten best cities for retirement. The author took the premise that a person or persons reading his article would be looking at a state and not an area of a state or a city in which to move. It's like a basic search for a very large area, a state, which has certain statistics and weather. If a person is interested in looking at the Midwest then they can compare those states. Another search could compare the smaller cities of Sioux Falls, Fargo and the Quad Cities. If you're just looking at city living there are plenty of lists for you to read. This basic search article is for starters.
Miles
13 July 2011 at 10:19 am
This list is a tool to be used in combination with others. If, for example, you use this in conjunction with Sperling's bestplace.net, it's a pretty good combination. Use a list such as this to get a broader state view and Sperling's to compare communities. There's no one list that does it all.
Paul E
14 June 2011 at 9:19 am
State wide data is not representative of the local regions where one might be living. The average crime is a value; it is probably higer in larger cities and lower in rural areas. A state with one major population area might look desirable unless the big city is where you want to live, then you determine that the rest of the state gave the illusion it might be safer. Similarly, a state like Illinois might be great except for higher crime in major cities. Without supporting data, this list is not useful for decision making.
Tyler Webb
11 June 2011 at 6:18 am
I see a high emphasis on crime rates with less emphasis on economics. A bit unusual when looking at locations for retirement. Although crime rates are certainly important, economics are paramount when considering retirement. Many of the places having high crime rates also have large cities which help explain the high rate for the "state". Fine tuning by areas within states makes more sense.