Cost of living, retired taxpayer-friendliness and state health infrastructure are among the data set considered in WalletHub’s 2022’s Best & Worst Places to Retire.
According to WalletHub, three in 10 employees report they are “very confident” they will have enough money to retire.
WalletHub’s research determined the best and worst cities in the United States to live when you retire, and 46 key measures included affordability, quality of life, healthcare and recreational activities.
“The cost of living and taxes are two of the top financial considerations when choosing a place to live in retirement. However, these are variables and can change dramatically over the years depending on what happens to the local, regional and national economies. For example, you may have your mortgage paid off, but gentrification in your area (or housing inflation with an influx of new residents) increases taxes and costs beyond what’s affordable with your retirement income,” Tamara L. Wolske, Program Director & Assistant Professor in Aging Studies at the University of Indianapolis, said in a press release. Wolske is also president of the Indiana Geriatrics Society.
The best city to retire is Charleston, S.C., followed by Orlando, Fla., Cincinnati, Ohio, Miami and Fort Lauderdale.
The worst cities to retire are Stockton, Calif., Rancho Cucamonga, Calif., San Bernadino, Calif., Newark, N.J. and Bridgeport, Conn.
“Recent retirees tend to choose where to live based on their lifestyle to enjoy their new freedom. Those over age 80 will often live close by or with family to have and/or provide extra support between the generations,” Wolske said.
According to WalletHub, the highest share population of Americans over age 65 is 25 percent in Pearl City, Hawaii. That’s 3.2 times more than the population in Irving, Texas, which has the lowest population at 8 percent.
The highest share of workers over age 65 is 26.94 percent in Plano, Texas, 2.3 times higher than the lowest which is Gulfport, Mississippi’s 11.67 percent.
The lowest adjusted cost-of-living index for retirees is 74.81 percent in Brownsville, Texas. The highest is 194.51 percent in San Francisco, Calif.
According to Jacquelyn Kung, CEO of Senior Care at Activated Insights and Fellow, Health and Aging Policy Fellows Program at Columbia University Medical Center, many retirees are choosing to work. She said that retirees who choose to work and are not able to work virtually should consider how easy it is to find a job locally. “The other factor that eventually becomes financial is one of transportation. How walkable is a place, or how close to public transportation? This could affect both your long-term health (good years) as well as a home care aide should you need one in your long-term care needs,” Kung said.
Wolske offered tips for living on a fixed income: prioritize expenses and plan your lifestyle according to expenses. Perhaps you will need to work part-time. “The non-negotiable expenses should be tended to first each month, such as rent or mortgage, utilities, credit accounts, insurance and taxes. Whatever funds you have left over can be used for controllable expenses such as groceries, gas and leisure activities.” Wolske said.
She also encouraged automatic draft payments of necessary expenses. “That way, in the event of a hospitalization or other life crisis, you can be sure there will be no late payments that incur penalties, increase your fees or lessen your credit score. It will also be a tremendous help to have the payments streamlined if a family member or custodian needs to take over your financial affairs temporarily or long-term. They will be able to devote their attention to your care and well-being instead of trying to figure out how to keep your ‘financial ship’ afloat while you are out of commission,” Wolske said.
We’re all human and are still capable of making mistakes when we retire.
“Not seeking out qualified financial expertise,” Clemson University Professor Dr. Mary Anne Taylor said in a press release. “We know there is a significant difference between subjective or casual judgments of financial preparedness and financial adequacy (how prepared people feel and how adequate they believe their income is for retirement) and objective judgments of preparedness and financial adequacy. A more objective estimate of how much money you’ll need can come from meeting with a qualified financial advisor.”
Wolske said the biggest mistake is waiting too late to plan and not planning for a longer life that extends beyond income and savings.
“The more years you live, the higher your living costs over time and you will likely incur more medical expenses. Many people plan for the good times after their job ends, but they do not take action steps across their life course to navigate the uncertainties of living as an older person in this country. Older adults are the greatest consumers of healthcare services. Most people do not realize that Medicare does not cover every health-related need and there are deductibles and copays. Also, residential nursing home care is not covered by Medicare, only short-term rehab stays are after hospitalization. There are over a half-million medical bankruptcies annually in America, but that is a systemic issue and not something an individual can avoid with personal planning (unless they have vast resources to draw from),” Wolske said.
Kathy Black, a professor at the University of South Florida Sarasota-Manatee Campus, said retirees can save in many areas of life besides shopping. They can reduce living expenses by sharing a house or renting a room in their home. “There are some sites which provide opportunities to find the right housemate. It’s not for everyone, just part of the mosaic of housing opportunities for people — and as it turns out — having a roommate can also boost your health, combat isolation and provide tangible assistance (help with grocery shopping and home maintenance),” Black said in the press release.
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Rebecca Barnabi
