This article looks at the 20 worst places to retire in the US. If you wish to skip our detailed analysis of retirement realities and the role of states, you may go to 5 Worst Places to Retire in the US.
Retirement Realities and the Role of States
Amidst sky-rocketing inflation in 2022, Vanguard found a growing number of people requesting loans and seeking withdrawals from their employer-sponsored plans. Prolonged unemployment and medical bills are being covered with these funds, notes the $7.2 trillion asset management firm. Adding to the financial strain, Bloomberg reported that the market turmoil erased $3.4 trillion from 401(k)s and IRAs since the end of 2021, further exacerbating the financial situation of retirees,. It is also estimated that Americans are facing a $7.1 trillion retirement savings shortfall, pushing them to lower living standards after retirement.
Consequently; amid inflation, political unrest, the conflict in Europe, and looming recession concerns, the ability of individuals to maximize their retirement savings is under significant strain. However, it's crucial to recognize that the financial impact on retirees extends beyond these global and national economic factors. For such individuals, the choice of residence can be equally influential, and living in the wrong state can pose additional challenges and drain financial resources in the process. To quote an example, one of the hardest states to live in financially is the state of Hawaii. According to the Missouri Economic Research & Information Center (MERIC), the cost of living in Hawaii is 79.2% higher than the US average.
While Hawaii doesn’t tax social security or pensions, the state has the highest cost of retirement, at $120,909 annually, per analysis by Madison Trust. It is estimated that an individual retiree living to the age of 80 needs $1,692,722 in savings to live comfortably Hawaii. According to Redfin Corporation (NASDAQ:RDFN), the median list price of a home in Hawaii is $820,000, higher than the national average. Meanwhile, Zillow Group, Inc. (NASDAQ:Z) notes that the median rent in the state stands at a whopping $2,800 per month.
While Hawaii may be the most expensive state to live in the US, there are many cheap states for retirement as well. According to the MERIC index, the cheapest state to retire in the US is West Virginia. The cost of living index of the state is 85.2, which means that living expenses are 14.8% lower than the US average. Such cheap states may be good for retirees to relocate to. However, the ideal states for living are those that offer the best balance between cost of living and taxes. Some of the best states for cost of living and taxes include Alabama, Oklahoma, Kansas, and Missouri. The #1 retirement state, however, is Mississippi. Not only is the state very tax-friendly, but also boasts a cost of living that is 14.7% lower than the national average. You can also check out some of the best cities within these states in our list of AARP’s best places to retire in 2023.
Let's now head over to the list of the worst places to retire in the US.
20 Worst Places to Retire in The US
Methodology
To compile the list of worst places to retire in the US, we have used our list of worst states to retire for taxes and cost of living. These states have the highest cost of living in the US and are not friendly towards retirees in terms of taxes. Next, we selected the top worst cities with high crime rates, high poverty and low quality of life compared to a high cost of living. Individual scores were summed up to get a unique Insider Monkey Score in the negative. The higher the negative score, the worst the place for retirement. Livability scores have been sourced from AARP and Area Vibes, and cost of living is derived from Best Places and Redfin Corporation (NASDAQ:RDFN). In case where two places had the same score, tie-breaking has been done on the basis of livability scores, with lower-scoring places ranking higher on our list.
Here are the worst places to retire in the US:
20. Baltimore, Maryland
Insider Monkey Score: -5
Livability Score: 75
Maryland stands as one of the worst states to retire for taxes and cost of living. The cost of living in the state is 14.8% higher than the US average. While the state doesn't tax social security, some types of retirement income such as that coming from an IRA are fully taxed. In particular, Baltimore is one of the worst places that one can retire to in the US. The city ranks poorly due to a high cost of living, low number of adult volunteer activities, and taxes.
19. Fresno, California
Insider Monkey Score: -7
Livability Score: 45
Fresno is one of the worst places to retire in the US. Local residents express deep concern about the severe pollution levels in the area, coupled with the widespread presence of graffiti. The city has a high cost of living, and 19.4% of individuals live below the poverty line. The city has also scored an “F” grade by Zumper for its air quality.
18. Hilo, Hawaii
Insider Monkey Score: -10
Livability Score: 60
Hilo in Hawaii is one of the worst cities to retire. Hawaii is already unpopular for its high cost of living which is 79.2% higher than the national average. According to Redfin Corporation (NASDAQ:RDFN), housing in the city is 47% higher than the US average, utilities cost 112% more, groceries are 52% higher, and healthcare costs 19% more than the average.
17. Stockton, California
Insider Monkey Score: -10
Livability Score: 59
Walkers, beware. Stockton is one of the worst cities to retire for you. Residents need to be careful when on foot, and avoid walking especially at night. The cost of living in the city is 24.7% higher than the US average, and 30% of the buildings in the city are at risk of flooding. One study even claims that the city could vanish beneath 10 to 12 feet of water if there is a massive rain event.
16. Fountain, Colorado
Insider Monkey Score: -11
Livability Score: 59
Fountain makes it on our list of worst places to retire for its cost of living, average livability score, and cold and snowy winters. The cost of living is 10.3% higher than the national average. Colorado itself is a bad state to retire in due to high taxes and cost of living. Property taxes in the state are close to the national average, but taxes paid usually end up being high due to high home costs.
15. Trenton, New Jersey
Insider Monkey Score: -12
Livability Score: 59
The state of New Jersey is one of the least friendly states for retirees. The cost of living in the state is 10.3% higher than the US average. Property tax rate is one of the highest in the US at 2.23%. Trenton, in particular, is regarded as one of the worst cities for its high cost of living. 27.7% of the population here live below the poverty line.
14. Saint Albans City, Vermont
Insider Monkey Score: -13
Livability Score: 59
Vermont is a bad state for retirement because of taxes and cost of living. In particular, Saint Albans City could be deemed as one of the worst places within the state because of higher-than-the-state-average living expenses and limited cultural amenities. The poverty level in the city is also high at 16.6%.
13. Fall River, Massachusetts
Insider Monkey Score: -15
Livability Score: 58
Data USA notes that 18.3% of the population in Fall River lives below the poverty line. The city is one of the worst to retire in because of its high cost of living. There is also a state-level sales tax of 6.25%.
12. Buffalo, New York
Insider Monkey Score: -16
Livability Score: 58
New York is one of the most expensive states to retire to, with a cost of living that is 26.5% higher than the national average. Social security income is not taxed in the state, but private pensions and income from retirement accounts are deductible up to $20,000. Buffalo, in particular, is a bad place to retire because of seasonal grass allergies, traffic, and cold and chilly winters.
11. Providence, Rhode Island
Insider Monkey Score: -18
Livability Score: 57
Another bad place to retire in the US is Providence, Rhode Island. 21.5% of the population lives below the poverty level, well above the 12.6% national average. The cost of living in the city is 9% higher than the US average. Plus, winters can be particularly uncomfortable for retirees because it gets really cold and snowy.
10. Augusta, Maine
Insider Monkey Score: -20
Livability Score: 57
Augusta is one of the most dangerous cities one can retire to. The poverty rate in Augusta is also high at 19.3%, which is 6.7% above the national average. The weather can also be very chilly.
9. Burien, Washington
Insider Monkey Score: -21
Livability Score: 57
Burien can be a risky place for retirees to call home. The city has some of the highest crime rates, and the cost of living is extremely high as well. According to Best Places, living expenses are 58% higher than the national average. The state of Washington is not ideal to retire to in itself, ranking poorly in terms of taxes and cost of living.
8. Paterson, New Jersey
Insider Monkey Score: -22
Livability Score: 57
Residents in Paterson, New Jersey report it to be overcrowded and overtaxed. They also state that there is a high infestation of drug dealers, with various problems arising due to it. The cost of living is also high, reported to be 24.8% higher than the national average.
7. Roosevelt, Utah
Insider Monkey Score: -22
Livability Score: 54
Roosevelt scores average in terms of general livability. The city also has a high rate of poverty at 17.1%. It also has a major risk of being affected by wildfires over the next 30 years, representing 95% of all properties in the city.
6. Bridgeport, Connecticut
Insider Monkey Score: -22
Livability Score: 53
One of the worst cities for retirement in the US is Bridgeport, Connecticut. Retirees are deprived of a vibrant and fun social scene, and the cost of living is very high as well. Living expenses in Bridgeport are 38.6% higher than the national average.