It turns out the “Last Frontier” state might be the last place you’d want to retire: Alaska was rated the worst state for retirement, according to a new Bankrate Ranking.
To determine the best and worst states for retirement, Bankrate weighed five categories: affordability (40%), wellbeing (20%), culture (15%), weather (15%) and crime (10%). The combined total score was used to determine the ranking of each state.
Alaska was dragged to the bottom of the list by low scores on affordability and weather. However, there are still positives to retiring in the northernmost state: Alaska residents bear the lowest tax burden in the country, according to the report.
These are the seven worst states to retire in 2022, according to Bankrate.
- New Mexico
Despite its notoriously high cost of living, New York did not fall at the bottom of the list. The state’s rankings received a boost from high scores in the wellness and culture categories, placing it somewhat in the middle.
Bankrate recognizes that there is a lot of subjectivity in choosing a place to retire. The categories in this ranking may not reflect everyone’s priorities. For example, the proximity of family plays a major role in the decision of many retirees where to settle.
“When I see people retiring and moving to different parts of the country 70 to 80 percent of the time, it’s to be close to family,” said Clark Kendall, president of Kendall Capital Management and author of ” Middle-Class Millionaire” at Bankrate. .
Retirees who are retiring soon may want to consider visiting different locations to get a sense of what it might be like to live there long-term.
“Go to different places you seem attracted to — places with a lower cost of living and lower property taxes — and test them out for a while,” Laura Kovacs, former director of education at the Scottsdale Area Association of Arizona Real Estate Agents and a recent retiree, says Bankrate.
“If you’re still working, take a moment to look at different types of communities and different types of lifestyles,” she says. “And if you’re retired, maybe try renting for a while before committing to buying.”