By:  Benyamin Davidsons

New York’s expensive cost of living has set it up to become the seventh-worst state in the US to take up retirement in 2024, as per a recent study by WalletHub.  The NY Post reported that the WalletHub study ranked all 50 states on how retirement friendly they are based on three main properties—namely affordability, quality of life and health care.  NY came in 7th worst overall, after ranking 10th place in quality of life, 12th in health care, with the nail in the coffin being that it got ranked as the least affordable state.

New York’s cost of living is about 30 percent higher overall than the national average, with housing leading the way, costing a whopping 78% higher than the rest of the country.  Basic necessities such as groceries and clothing are each about 12% more expensive in NY than the national average, as per RentCafe.

The WalletHub ranking didn’t go into details about why the worst states to retire in aren’t ideal for retirees aged 62 and up, which is the age when Americans can start receiving take Social Security retirement benefits.  The ranking listed the following states as worse than New York for retirement, including: Oklahoma, Rhode Island, Mississippi, New Jersey and Kentucky, which was ranked in last place.  The Wallet Hub study ranked New Jersey, worst than NY, as the second worst of all states for retirement, after only Kentucky.

Still, compared to 2022, when NJ was in last place, their rating had improved.   NJ ranked 37th for adjustable cost of living, 42nd in WalletHub’s taxpayer ranking, and 45th for Health-Care Facilities per Capita.  Per the Post, the Garden State has the highest property taxes in the nation, with an average effective property tax rate of 2.49%, according to mortgages firm Rocket Mortgage.  By comparison, NY has a 1.72% property tax rate and the national average is 0.99%.

The Wallet Hub study went in depth explaining why Florida topped the list as a “retirement paradise.”   Florida was ranked as the best state to retire because it has  extremely tax friendly laws, with no state income taxes, and no estate or inheritance taxes.  Also, the Sunshine State boasts a relaxing and enjoyable environment including beaches, golf courses and country clubs that retirees can relish in, WalletHub reported.

The study went on to note that Florida has one of the country’s lowest death rates for people aged 65 and older.  The Wallet Hub study named Colorado and Virginia, respectively, as the No. 2 and No. 3 best states to retire.  Colorado has taxpayer-friendly conditions, namely no estate or inheritance tax, and also boasts high ranking geriatrics hospitals, WalletHub said. Virginia’s positive ranking, despite being ranked 11th for affordability, was based on its low crime rate and for boasting some of the best elder abuse protection laws.

Per the Post, last year, very similar findings were revealed by a different study published by SmartAsset.  That research had revealed that NYC residents with a $650,000 salary can save about $200,000 by leaving the high rents and taxes here and moving to Miami. New Yorkers are subjected to an effective tax rate of 45%.