As the specter of financial insecurity looms over many individuals entering retirement, concerns about never being able to retire persist, particularly as statistics reveal that 28% of non-retired adults have not saved any money for their later years. Compounding this anxiety is the fact that Social Security benefits only replace approximately 37% of the average worker’s earnings.
Recognizing the pivotal role of location in determining post-retirement financial well-being, WalletHub conducted an extensive analysis to identify the most retirement-friendly states. The study compared all 50 states across 46 key indicators, ranging from financial considerations such as tax rates and the cost of living to factors like access to quality medical care and engaging recreational activities.
AND Rhode Island ranks 4th worst state in America to retire, behind Kentucky, Missouri, and New Jersey.
Bottom 10
Top 10
“Being retired brings freedom, but it also naturally is a time of financial constraint, with many seniors living on a fixed income. To make the most of your retirement savings, you should retire in a state where the cost of living and tax rates are friendly to retirees, if you have the resources to. You should also consider factors like the quality of the state’s healthcare system and the abundance of activities that you enjoy.”
CASSANDRA HAPPE, WALLETHUB ANALYST
This hasn’t been the best month for Rhode Island rankings. Our roads rank worst in the nation and we also rank as the worst state to start a business.
Methodology
In order to identify the most retirement-friendly states, WalletHub compared the 50 states across three key dimensions: 1) Affordability, 2) Quality of Life and 3) Health Care.
They evaluated those dimensions using 46 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for retirement. For metrics marked with an asterisk (*), we used the square root of the population to calculate the population size in order to avoid overcompensating for minor differences across states.
They then calculated each state’s weighted average across all metrics to determine its overall score and used the resulting scores to rank-order their sample.
Affordability – Total Points: 40
- Adjusted Cost of Living: Double Weight (~10.00 Points)
- General Tax-Friendliness: Full Weight (~5.00 Points)
Note: This metric is based on WalletHub’s “States with the Highest & Lowest Tax Rates” ranking. - Retired Taxpayer-Friendliness: Full Weight (~5.00 Points)
Note: This metric measures taxation on retirement income, property and purchases, as well as special tax breaks for seniors. - Tax-Friendliness on Estate or Inheritance Tax: Full Weight (~5.00 Points)
- Annual Cost of In-Home Services: Full Weight (~5.00 Points)
- Annual Cost of Adult Day Health Care: Full Weight (~5.00 Points)
- Share of Population Aged 65 and Older Who Could Not Afford a Doctor Visit: Full Weight (~5.00 Points)
Note: This metric measures the share of the population aged 65 and older who needed to see a doctor in the past 12 months but were restricted due to cost.
Quality of Life – Total Points: 30
- Share of Population Aged 65 and Older: Double Weight (~2.50 Points)
- Risk of Social Isolation: Full Weight (~1.25 Points)
Note: This metric considers the following six risk factors of social isolation in population aged 65 and older: a) Divorced, separated or widowed; b) Never married; c) Poverty; d) Disability; e) Independent Living Difficulty and f) Living alone. - Elderly-Friendly Labor Market: Full Weight (~1.25 Points)
Note: This metric takes into account both the share of population aged 65 and older working and the number of part time employees for every full-time employee for population aged 65 and older. - Share of Population Aged 65 and Older in Poverty: Full Weight (~1.25 Points)
- Elderly Food Insecurity Rate: Full Weight (~1.25 Points)
Note: This metric refers to the share of the population aged 60 and older who faced the threat of hunger in the past 12 months. - Expenditures Captured by the Administration on Aging per Population Aged 60 and Older: Full Weight (~1.25 Points)
Note: The Older Americans Act (OAA) is administered by the Administration on Aging. It funds “personal care, congregate meals, transportation and nutrition-education programs for seniors.” - Access to Public Transportation: Full Weight (~1.25 Points)
Note: This metric measures the share of commuters who use public transit as a proxy for the availability of public transportation. - Mildness of Weather: Double Weight (~2.50 Points)
Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking. - Access to Scenic Byways: Full Weight (~1.25 Points)
Note: This metric takes into account both the number of scenic byways and the length of scenic byways. - Shoreline Mileage: Full Weight (~1.25 Points)
- Museums per Capita*: Full Weight (~1.25 Points)
- Theaters per Capita*: Full Weight (~1.25 Points)
- Golf Courses & Country Clubs per Capita*: Full Weight (~1.25 Points)
- Bingo Halls per Capita*: Full Weight (~1.25 Points)
- Access to Adult Volunteer Activities: Full Weight (~1.25 Points)
Note: This metric measures the number of rated charity organizations per capita*. - Elderly Volunteer Rate: Full Weight (~1.25 Points)
- Share of Residents Who Do Favors to Their Neighbors (proxy for Neighborhood Friendliness): Full Weight (~1.25 Points)
- Violent-Crime Rate: Full Weight (~1.25 Points)
- Property-Crime Rate: Full Weight (~1.25 Points)
- Quality of Elder-Abuse Protections: Full Weight (~1.25 Points)
Note: This metric is based on WalletHub’s “States with the Best Elder-Abuse Protections” ranking. - Air Quality: Full Weight (~1.25 Points)
- Drinking-Water Quality: Full Weight (~1.25 Points)
Note: This metric measures the share of the population potentially exposed to water exceeding a violation limit.
Health Care – Total Points: 30
- Family Medicine Physicians per Capita: Double Weight (~3.16 Points)
- Dentists per Capita: Full Weight (~1.58 Points)
- Nurses per Capita: Full Weight (~1.58 Points)
- Home Health Aides per Capita: Full Weight (~1.58 Points)
Note: Home health aides often help older adults who need assistance. In some states, home health aides may be able to give a client medication or check the client’s vital signs under the direction of a nurse or other healthcare practitioner. - Share of Geriatricians Required to Meet Estimated Need (Geriatrician Shortfall): Double Weight (~3.16 Points)
- Top-Rated Geriatrics Hospitals: Double Weight (~3.16 Points)
- Health-Care Facilities per Capita: Full Weight (~1.58 Points)
- Quality of Public Hospitals: Full Weight (~1.58 Points)
Note: This metric is based on Centers for Medicare & Medicaid Services’ ranking of public hospitals. - Well-Being Index for Population Aged 55 and Older: Full Weight (~1.58 Points)
- Share of Population Aged 65 and Older with Good or Better Health: Full Weight (~1.58 Points)
- Share of Population Aged 65 and Older with Poor Mental Health: Full Weight (~1.58 Points)
Note: This metric refers to the share of population aged 65 and older who reported their mental health was not good 14 or more days in the past 30 days. - Share of Population Aged 65 and Older with a Disability: Full Weight (~1.58 Points)
- Share of Population Aged 65 and Older Who Are Physically Active: Half Weight (~0.79 Points)
- Share of Population Aged 65 and Older Who Are Obese: Half Weight (~0.79 Points)
- Share of Population Aged 65 and Older with Inadequate Sleep: Full Weight (~1.58 Points)
Note: This metric refers to the share of adults aged 65 and older who reported sleeping less than seven hours in a 24-hour period on average. - Life Expectancy: Full Weight (~1.58 Points)
- Death Rate for Population Aged 65 & Older: Full Weight (~1.58 Points)
Sources: Data used to create this ranking were collected as of December 20, 2023 from the U.S. Census Bureau, Federal Bureau of Investigation, Council for Community and Economic Research, U.S. Bureau of Labor Statistics, The Kiplinger Washington Editors, County Health Rankings, Genworth Financial, United Health Foundation, Centers for Disease Control and Prevention, Corporation for National and Community Service, Centers for Medicare & Medicaid Services, Great Nonprofits, American Board of Medical Specialties, Gallup Healthways, The Tax Foundation, America’s Scenic Byways, Bingo Halls U.S.A., NOAA Office for Coastal Management, U.S. News & World Report and WalletHub research.
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