The 10 Worst States to Retire In: They're Frosty and Costly

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BostonTopRetirements.com has compiled a list of the 10 worst states in which to retire, based on five factors: fiscal health, property taxes, income taxes, cost of living and climate.

Now, this list comes with the important caveat that every retirement is unique. You don't get to choose, for instance, where your friends and family live, and proximity to them could be a major factor in your decision. And the way the criteria are weighted may not match your person preferences. Maybe you like living somewhere that has really intense winters. Perhaps the list ignores an issue that's vital to you. Even so, it's a good place to start.

This year's Worst 10 List features three new arrivals -- Vermont, Minnesota and Maine -- meaning three other states have escaped retirement infamy: Ohio, Nevada and California. Read on to find out which states weren't so lucky.

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The 10 Worst States to Retire In: They're Frosty and Costly

High property taxes and a high foreclosure rate weigh heavily on Wisconsin. On the other hand, Social Security income is exempt from its income taxes (which are also high).

Ninth place was virtual tie, but Maine offers lower property taxes than the No. 8 state. It does, however, have higher income taxes. The governor has said he wants to make retirement income tax-exempt in Maine, but it hasn't happened yet.

New York wins (or, rather, loses) the toss-up with Maine because of its median property taxes -- the fourth highest in the nation -- and general tax burden. Generous exemptions for Social Security and pensions, as well as a high standard deduction, count in the Empire State's favor. Cost of living, of course, and the bitter winters are heavy strikes against New York -- unless you're rich, or a member of the Polar Bear Club.

With no income tax exemptions for pensions or Social Security, Minnesota puts a heavy tax burden on retirees -- the nation's fourth highest levy, according to TopRetirements's calculations.

The blight in the Garden State: taxes. New Jersey levies the nation's highest median property tax ($6579), and has the highest income tax burden as well, according to the Tax Foundation. On top of that, it's facing a big budget deficit, and features a lofty cost of living. But most pension and Social Security income is tax-exempt for couples making less than $100,000.

The Bay State is often called "Taxachusetts," and with good reason: Property taxes are among the nation's highest, and the flat rate applied to earnings beside Social Security, which is exempt (like government pensions, but not private ones), can prove costly indeed.

The Green Mountain State may be scenic, but it harbors high median property and income taxes, and its cost of living is in the top 10. Winters are described locally as "too cold to snow."

Rhode Island's scenic too, but is facing choppy economic waters, with underfunded pension and health care liabilities, as well as budget deficits. This despite the fact that the Ocean State has the fifth highest median property taxes paid.

The Prairie State is in dire fiscal straits, with terrible figures for pension funding, deficit spending, unemployment and foreclosures. The official response out of the capital in Springfield? An increase in income taxes. Most pension and Social Security income is not taxed in Illinois, but the state's 5% flat tax eats into other earnings, such as investment income.

Locked in a dead heat overall with No. 2 Illinois, Connecticut won its spot at the top of the list because of higher property and income taxes, as well as a greater cost of living.

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