For seniors who want to enjoy their golden years in style, there is no better way to enjoy this stage of their lives than by planning a financially successful retirement. For so many seniors around the country, planning for retirement is a stressful and overwhelming process, but it is a process that is completely necessary for many seniors if they want to be able to take some time off and enjoy this phase in their life. It can also come in handy for seniors who need to plan and pay for senior living options once they retire.
Every senior's retirement plan is different and every definition of what makes for a successful retirement is different as well. While the main thing that makes a financially successful retirement is diligent planning and the right amount of money, there are some states that have better financial environments for others. Things such as low taxes, low cost of living, high average income and low senior living costs can all make it easier for any senior to set themselves up for success as they plan for their retirement.
While retirement planning can be difficult, there are some states that are better than others when it comes to retirement finances. Here is our list of the top five states in the U.S. for retirement finances and why these states rank so highly on our list.
Unfortunately for the state of Wyoming, it doesn't rank particularly high on the SeniorScore™ ranking system when it comes to overall accessibility for seniors. However, when it comes to finances, particularly for those planning retirement, Wyoming is at the top of the list. There are a few reasons why Wyoming is so great for those managing their finances as they plan for their retirement:
- Property taxes are around 1.63% in Wyoming, which is significantly lower than the national average of 2.79%.
- While most properties nationally average 1.09% of the property value for their taxes, Wyoming comes in at just 0.57%.
- State sales tax and state income tax are both significantly lower than the national average in Wyoming.
While taxes may be low in this state, it doesn't mean that residents of Wyoming aren't making enough to plan for a successful retirement. The average household income in Wyoming is $71,357 which is much higher than the national average of $64,580. The average per capita income in Wyoming is also significantly higher than the national average.
When seniors are ready for some type of senior care, they will find that services such as adult daycare and nursing home costs are lower than the national average in their home state. These financial perks paired with an average cost of living in the states can all help any senior plan for the retirement that they want.
Virginia is the highest ranking state on the SeniorScore™ system when it comes to overall quality of life for seniors. This not only holds true when it comes to things like health and safety and recreation and leisure but for financial planning for retirement as well.
In Virginia, residents can enjoy low property taxes, and low taxes when compared to the overall property value. The average sales tax in Virginia is also only 5.90%, which is low compared to the national average of 6.97%.
As for the average household in Virginia, they make around $86,407, which is significantly higher than the national average of $64,580. The same goes for the states median household income and the average per capita income in the state.
All of these factors can help seniors plan for a financially successful retirement. For those seniors who are planning on saving for a retirement that includes senior living costs, they will be happy to find that these costs are surprisingly low in Virginia, even with the state's high overall general income.
Assisted living costs, adult daycare costs, nursing home costs and home healthcare costs in Virginia, are all much lower than the national average. All of this makes for a much better financial environment for seniors to plan their retirement in. Perhaps this is why there is a higher percentage of seniors living in Virginia than the national average.
3. South Dakota
When looking at the more than 100 variables calculated for the SeniorScore™ system, South Dakota ranks in the bottom half of the country for overall livability for seniors. However, one area that the state really shines in is their finances. So much so, that South Dakota is one of our top-ranking states when it comes to financially planning for retirement.
Property taxes are low in South Dakota, but the real way many save is on the income and sales tax. The average sales tax in South Dakota is just 4.99%, compared to the nation's average of 6.97%. Meanwhile the average state income tax in South Dakota is over 3% less than the national average.
There is a relatively average cost of living in South Dakota, and a low unemployment rate, which can be helpful for seniors looking to work right up to their ideal retirement time. For those who are planning a retirement that includes senior living expenses, they will find that the average assisted living costs in South Dakota are just $36,691 per year, which is much lower than the national average of $42,700 per year. Nursing home costs and adult daycare costs are also much lower than the national average in South Dakota.
Together features such as this make this state one of the best in the country when it comes to planning for a financially strong and successful future retirement.
Alabama may be in the middle of the pack when it comes to their overall SeniorScore™ ranking, but the state has a lot to brag about when it comes to their finances. This is perhaps why 28% of the population of Alabama are seniors.
Property taxes are staggeringly low in Alabama, coming in at just 0.91% of total income in Alabama, which is much lower than the national average of 2.79%. The property taxes are on average, 0.40% of the value in the state, which is also lower than the national average.
Seniors who plan to retire in Alabama can really take advantage of low senior living costs, which can make budgeting for retirement expenses even easier.
- The average cost of assisted living in Alabama is just $34,915 per year, which is very low compared to the national average.
- Nursing home costs come in around $74,355 per year, which is significantly lower than the national average of $92,481.
- Those looking for adult daycare in Alabama will find that the average costs are around $8,870 per year, which is less than half of the national average of $17,931 per year.
- Home healthcare is also low, coming in at just $36,922 per year, around $10,000 less per year on average than the rest of the nation.
Seniors can enjoy all of these benefits paired with an overall low cost of living in Alabama, which can help them stay on track with their savings and planning as they create a strong financial future for their retirement.
Down in Louisiana, residents can enjoy a relatively low cost of living and a handful of financial perks that can make planning for retirement just a little easier. The state comes in on the top half of our overall rankings of best states for seniors, but it ranks high on the financial side of things.
Low property taxes can help seniors save while they plan for retirement, as can the low income tax. While the rest of the country averages at 3.38% income tax, those in Louisiana pay just 2.68%. Relatively average household income amounts also help create an environment for success for seniors looking to plan ahead for their retirement.
When it comes to working out the numbers for senior living expenses, seniors can enjoy very low living costs. The average assisted living facility costs around $40,020 per year, which is below the national average, while adult daycare costs just $16,552, which is also below the national average.
While most of the country pays around $92,481 per year for nursing home costs, those in Louisiana pay on average just $61,059 a major factor for those planning for late-in-life care. Meanwhile home healthcare costs are also significantly lower than the national average, costing just $16,552 per year.
Together features such as this have helped make Louisiana a financially sound state for all seniors looking to plan a financially successful retirement.