Best and worst states to retire rich
Whether you have enough money saved for retirement is a question on the minds of many soon-to-be retirees — and with good reason. A GOBankingRates survey found that 28 percent of baby boomers and seniors (aged 55 and over) don't have any retirement savings, and 17.3 percent have less than $10,000 saved. Depending on where you retire, however, you could maximize how far your retirement income can go, and possibly even help you retire rich. You just need to choose the best state to retire.
To make finding the best state to retire rich easier for you, GOBankingRates surveyed all 50 states and the District of Columbia on these four components:
Taxes: state sales tax, state tax on Social Security benefits and property tax
Living expenses: average home listing price, median home value and a cost of living index
Banking: savings account interest rate and two-year CD account interest rate
Health and Social Security: average health insurance premium, average Social Security benefit and Medicare spending per capita
The result: your financial guide to the best and worst states to retire rich. Click through to find out where your state ranks and where you should think about moving if you want to retire wealthy.
Complete Ranking of the Best and Worst States to Retire Rich
Do you live in a state that offers enough financial benefits for retirees? Check out the table below see how your state ranks — and if you should consider moving to one of the best states to retire rich.
Methodology: GOBankingRates ranked these states based on the results of original research and analysis of costs affecting retirees. This cost analysis was based on four types of factors affecting retirees: taxes, living expenses, banking, and healthcare and Social Security. These four types of factors were broken down as into sets of data points.
For taxes, (1) state sales tax rates, sourced from The Tax Foundation; (2) property tax rates, sourced from The Tax Foundation; (3) state tax on Social Security benefits, which was weighted twice as much as other tax factors, sourced from Kiplinger. Three factors were included among living expenses category: (1) average listing price, sourced from Trulia the week of May 11, 2016; (2) median home value, sourced from Zillow's April 2016 data; (3) cost of living index, sourced from MissouriEconomy.org, which was weighted twice as much as average listing price and four times as much as median home value. Two data points were included in the banking category: (1) savings account interest rates, sourced from GOBankingRates' database; (2) 2-year CD account interest rates, sourced from GOBankingRates' database, with both data points weighted one-quarter. The health and Social Security category included three data points: (1) average health insurance premium, sourced from the Kaiser Family Foundation; (2) average Social Security benefits, sourced from the Social Security Administration; and (3) Medicare spending per capita, sourced from the Centers for Medicare and Medicaid Services.
This article originally appeared on GOBankingRates.com: Best and Worst States to Retire Rich
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