What's your perfect retirement spot? Is it a place with warm temperatures and a healthy environment? What about low taxes and an affordable cost of living? Or maybe you just want some peace and security, away from a crime-riddled society?
Different people have different priorities when deciding where to retire, which is why MoneyRates.com looked at 11 different data series across five major categories in examining the best and worst states for retirement in 2014.
Here are the five categories:
- Senior population. By looking at both the current proportion of seniors and the growth rate of that population segment, this study accounted not just for how many of their peers seniors can expect to find in different states, but also how well each state is attracting older residents.
- Economics. This took into account taxes, cost of living and unemployment, to measure whether a state was affordable and had a thriving economy.
- Crime. This category took into account both violent and property crime.
- Weather. MoneyRates.com looked at a combination of temperature, precipitation and hours of sunshine to measure how pleasant each state's climate was.
- Senior life expectancy. How long a state's residents typically live after age 65 reflects on both the healthiness of the state's environment and the level of medical care available.
Based on these criteria, here is the 2014 MoneyRates.com list of the best states for retirement.
As you might expect, Hawaii scored well for its climate, but that was not its greatest strength. The category in which Hawaii ranked No. 1 out of all 50 states was life expectancy for people at age 65 today. There is just something about the place that agrees with people. One caution is that Hawaii has the highest cost of living of all 50 states, but it does somewhat offset that by having the lowest property taxes as a percentage of property value.
You might not expect to see Hawaii and Iowa listed side by side, but the value of looking at a wide range of data is that it takes many attributes into consideration. Iowa did not really excel in any one category, but it was well above average in four out of five. Its strongest suit was low crime rates, with a combination of low property and violent crime rates placing Iowa in the top 10 nationally in that overall category.
This may seem like a particularly out-of-the way place to retire, but some people like that -- especially when being out of the way means getting away from crime. Idaho ranked best of any state in the crime category, and with its low cost of living and thriving job market, the state also did well in the economic category. Just don't choose this state if you are looking for balmy weather. Idaho was well below average in that category.
Perhaps the ultimate traditional retirement choice, Florida has the highest percentage of its population age 65 or older of any state. That demographic thrives there, as the state's life expectancy at age 65 is one of the best in the country. Obviously, the climate is also a plus, but choose your neighborhood carefully. Florida is one of the 10 worst states for crime.
Here's proof that not everybody seeks a warm-weather retirement: Despite one of the worst scores for climate, Vermont has one of the highest percentage and fastest-growing senior populations in the country. Low crime may be one of the attractions, as the state has the second-lowest rate of violent crimes.
The characteristics here are somewhat similar to Florida: a good climate, a significant senior population and long life expectancies, with the chief drawback being high crime rates.
7. (tie) Colorado
Economic factors and senior life expectancy were Colorado's biggest assets in this study. The state was about average in every other category.
7. (tie) Maine
Again, cold-weather states may not be what everyone wants for retirement, but they are popular with many older Americans. Maine already has one of the largest percentages of seniors, and that demographic is growing faster than in any other state. Besides weather, economic factors are a drawback, with a relatively high cost of living and property taxes.
Climate and low crime rates are among Virginia's attractions, but not everyone agrees. The senior population is relatively low -- perhaps because its life expectancy for people at age 65 is the 10th worst nationally.
One more state for the rugged, get-away-from-it-all types. Despite one of the worst climate ratings in the survey, Montana has a thriving senior population -- perhaps because its economic factors rank in the top 10 nationally.
The results above were based on an equal weighting of the major categories. You might put more emphasis on one category than the others and have different preferences as a result. But as a starting point, the descriptions above might give you some feel for which states belong on your retirement wish list today.
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Rates as of 10/22/2016
Minimum to earn APY $0
Rates as of 10/22/2016
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