REVEALED: The 10 cheapest states to retire – and why Florida does NOT make the list
REVEALED: The 10 cheapest states to retire in – and why Florida is NOT on the list
- Senior residents in West Virginia can claim a deduction on their taxes to offset expenses, making it the cheapest place to retire
- It also ranks third in the top state for retirees overall, with Iowa taking the top spot
West Virginia is officially the cheapest state to retire in — ranking third overall for retirees.
According to Bank interest ‘Best and Worst States to Retire’, its light tax rate and low cost of living make it the cheapest place in the US to retire.
While the tiny state may seem like an unusual choice, it boasts the best affordability in the country.
According to SmartAsset, seniors in West Virginia can claim a deduction on their taxes to offset expenses.
But the state is only in the middle of the rankings in terms of welfare, ranking 26 in that category.
In addition to being the cheapest state to retire in, West Virginia is also ranked as the third best state overall by Bankrate. Iowa took first place in that category.
This is due to the favorable weather, well-being, and lack of crime in West Virginia.
With West Virginia at the top, Mississippi is number two on the cheapest list, followed by Iowa and Alabama.
The 10 cheapest states to retire in
1. West Virginia
Source: Bank rate
Missouri is in fifth place, trailing Oklahoma and Indiana.
In eighth, ninth and tenth place are Kansas, Wyoming and Arkansas.
Despite being a popular destination for people to retire to, Florida was not in the top 10 cheapest locations.
DeSantis’ Sunshine State ranks thirty-fifth in the list of most affordable prices.
Last year it was eighteenth.
But overall, Florida took eighth place for the best state for retirees.
Kerry Hannon, a retirement expert and author of “In Control at 50+: How to Succeed in the New World of Work,” said, “Don’t rule out places that seem unlikely.
‘It’s important that people get excited about that next chapter of life.
“It’s a new adventure and you really need to take the time to do the prep work financially and personally so that you make smart decisions.”
Interestingly, according to the data for the overall best and worst states for retirees is geographically distributed.
Bankrate says the Midwest and South claim the top five states because of their low cost of living compared to the Northeast and West.
A recent report from Fidelity Investments, the largest provider of 401k plans in the US, found that a paltry 29 percent of people are on track to cover all their living expenses in retirement — up from 38 percent in 2020.
In addition to being the cheapest state to retire in, West Virginia is also ranked as the third best state overall by Bankrate. Iowa took first place in that category
According to the data, Iowa ranks top overall for retirees
Alabama is the fourth cheapest state to retire in
A separate Fidelity report found that the average value of a 401k pot fell 20 percent, from $130,700 in the last quarter of 2021 to $103,900 in the same period last year.
The decline was attributed to the stock market turmoil and inflation.
Although annual inflation in the US cooled to 5 percent last week, it remains stubbornly high compared to the Fed’s target of 2 percent.
As a result, households are forced to draw on their savings – or even go into debt to cope with the rising cost of living.