1. Washington
While Washington state offers gorgeous landscapes and no state income tax, it comes with its own set of challenges for retirees. The cost of living in cities like Seattle is expensive, especially when it comes to housing. Sales taxes are also high, and property taxes can take a significant portion of your budget.
2. Louisiana
While Louisiana offers vibrant culture and delicious food, it also comes with financial challenges. The state’s high sales tax can drain your retirement income, and the cost of living isn’t exactly low. Healthcare can be a concern in some areas, and property taxes are also relatively high compared to the national average.
3. Michigan
Michigan’s winters are notorious for being long and harsh, which can take a toll on retirees. While the state has a lower cost of living, taxes are still a concern. Property taxes are high, and the state has an income tax that includes some retirement income. For those seeking warmer climates and tax breaks, Michigan isn’t the best choice.
4. Alaska
Retirees might think that Alaska’s scenery and wildlife are worth the price, but the high cost of living and remote location can make it difficult. Housing costs, food, and even healthcare services are all more expensive than you might expect. Plus, the long winters and isolation can take a toll on your mental and physical well-being.
5. New Jersey
New Jersey has some of the highest property taxes in the country, which can be a serious drain on your retirement savings. Although the state offers beautiful landscapes and proximity to major cities, the cost of living is steep. Retirees will also face high income taxes on retirement benefits, which makes it harder to stretch your funds.
6. Illinois
Illinois is known for its high property taxes, which can eat into your retirement savings quickly. On top of that, the state has a high sales tax and income tax rates, even on retirement income. Combined with the chilly winters and higher-than-average cost of living, Illinois is often considered a tough place for retirees.
7. Connecticut
Like many states in the Northeast, Connecticut has high living costs, especially in terms of housing and property taxes. Retirees also face a heavy tax burden, as the state taxes pension income and Social Security benefits. Although it’s scenic and offers a lot of amenities, the financial drawbacks make it less appealing for retirees on a fixed income.
8. Maryland
Maryland is another state with steep property taxes and high income taxes. While there’s access to excellent healthcare and cultural attractions, the cost of living is simply too high for many retirees. The state also taxes Social Security benefits, which makes stretching your retirement dollars more difficult.
9. Nevada
While Nevada might seem like an affordable option with no state income tax, the reality can be tough for retirees. The cost of healthcare is high, and property prices, especially in cities like Las Vegas, can be daunting. Additionally, the state’s high sales tax can make day-to-day expenses costly, eating away at your budget.
10. Rhode Island
Rhode Island is small, but it has big costs for retirees. Housing is expensive, and property taxes are among the highest in the country. Furthermore, the state taxes pensions and other retirement income, leaving you with less to live on. The weather can also be unpredictable, which might be a dealbreaker for those looking for year-round comfort.
11. New York
New York is known for its bustling cities and vibrant culture, but it’s not the best state for retirees. The cost of living is high, especially in cities like New York City and Long Island. Property taxes are sky-high, and income taxes don’t do retirees any favors. Plus, it’s not exactly a retirement-friendly tax state, with high state taxes on pensions and retirement income.
12. Hawaii
While it’s hard to resist Hawaii’s natural beauty, the reality of retiring there is a lot less appealing. The cost of living is astronomical, including housing and food, which are significantly higher than most other places in the country. Plus, healthcare costs are also steep. While it’s a tropical paradise, your savings might not last long enough to enjoy it.
13. Florida
While many retirees flock to Florida for its warm weather, it’s not all sunshine when it comes to retirement finances. Housing prices have been rising rapidly, especially in popular areas like Miami and Tampa. Additionally, the state has no income tax, but property taxes can be high, and some areas have exorbitant homeowners’ association fees.
14. Oregon
Oregon offers stunning natural beauty, but its tax policies are less than ideal for retirees. The state taxes pensions and retirement income, and the cost of living in areas like Portland can be high. Property taxes are also significant, and while healthcare access is decent, the state’s overall tax burden makes it challenging for many retirees.
15. California
California might seem like paradise for some, but it’s a financial nightmare for retirees. The high cost of living, including steep housing prices and sky-high taxes, makes it a tough place to retire on a fixed income. On top of that, property taxes can be a heavy burden. While the weather is great, your savings might not stretch as far as you’d like.
Retirement is all about enjoying your golden years without the stress of financial strain. While these states might offer beauty and amenities, their financial burdens make them tough places to retire comfortably in 2025.
