Florida doesn't even crack the top 5 in new list of most 'retirement-friendly' states — where the living is truly easy
Florida doesn't even crack the top 5 in new list of most 'retirement-friendly' states — where the living is truly easy.
If you're dreaming of retirement you may be thinking about warm weather, beaches and a slower pace of life. But the reality of retirement often comes down to one thing: how far can your money actually stretch?
For many Americans, that question is becoming harder to answer. The average retired household spends more than $61,000 a year (1), according to the U.S. Bureau of Labor Statistics, with housing, healthcare and transportation coming in as their biggest expenses (2).
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here's what it is and 3 simple steps to fix it ASAP
Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going
That's why the state you choose to retire in can make a major difference, and a new study (3) from home care agency Polaris Home Care has ranked all 50 states, with some surprising winners.
Forget the usual retirement hotspots. The places where retirees may be able to stretch their savings the furthest aren't always the states with the warmest winters or the biggest retirement communities.
The research from Polaris Home Care analyzed all 50 states to determine which offer the most retirement-friendly environments, using factors including healthcare costs, housing expenses, property taxes, utilities, food costs, crime rates and average earnings.
The results show that even popular retirement destinations can fall short when everyday costs are factored in.
Idaho claimed the top spot with a perfect Retirement Index Score of 100, thanks to its combination of affordability, safety and relatively low healthcare costs. The state reported annual medical expenses of $8,148 per person, above-average earnings of $63,894 and a crime rate about 41% lower than the national average.
Arizona ranked second with a score of 90.67, helped by its warm climate, lower property taxes and above-average earnings of $63,692. The state's property tax rate of just 0.41% was among the lowest in the country, while average monthly utility costs came in at about $524.
North Dakota rounded out the top three with a score of 90.48. The state benefited from strong average earnings of $65,127 and lower food and beverage costs, which come in around $3,810 per person annually — more than $500 below the national average.
The remaining states that make up the study's top 10 are Virginia, Alabama, Wyoming, Florida, Mississippi, Minnesota and Michigan.
One of America's most famous retirement destinations, Florida, didn't even crack the top five, coming in seventh with a score of 83.77. The warm weather and lack of state income tax keep it attractive for retirees but the study suggests taxes alone don't determine retirement affordability.
Alaska was named the least retirement-friendly state, scoring just 41.44. Although Alaska residents earn some of the highest average wages in the country at about $70,196 annually, those earnings are offset by high living costs.
The state recorded some of the highest expenses for utilities, healthcare and food, including average monthly utility costs of $658 and annual medical spending of more than $13,600 per person. Alaska also had the highest violent crime rate among states analyzed.
Read More: Are you paying too much for car insurance? Here are 3 clever ways to slash your monthly bill
Missouri, Texas, Nebraska and Louisiana also landed in the bottom five.
