A new study finds New York and Connecticut are among the worst states to retire in when you’re on a budget.
Seniors have the highest poverty rate of any age group at 14.1%, up from 9.5% in 2020 – according to the United States Census Bureau. After years of economic turmoil, higher prices for housing, gas, groceries and electricity have affected all Americans, but none more so than seniors. Inflation is cooling (3.09%), but the Social Security cost-of-living adjustment is just 3.2% in 2024, down from 8.7% in 2023.
Seniorly has released a study on the Best States to Retire on a Budget in 2024, using the most recent data from the Census Bureau, Bureau of Economic Analysis, Social Security Administration and Centers for Medicare and Medicaid Services.
The study considered a wide range of financial factors for each state and Washington, D.C., including housing, electricity, gas, groceries, taxes, social security payment, inflation and Medicare spending.
The takeaway for our area? New York was the second worst state for retirees on a budget (after California. The Empire State ranked No. 50 for home ownership (65.6%), No. 50 for rent ($3,013), No. 46 for annual growth in home values (8.6%), No. 42 for gas ($3.28 per gallon) and No. 37 for inflation ($915).
Connecticut was the fifth worst state to retire in (behind Massachusetts and Washington, D.C.), again due mostly to the high costs of living and housing. Connecticut’s monthly electricity bills are about $176, higher than every state but Hawaii ($222).
Rounding out the top 10 worst states for retirees on a budget were New Jersey, Hawaii, New Hampshire, Nevada and Maryland. The 10 best states were Iowa, New Mexico, Tennessee, Oklahoma, South Dakota, Idaho, Michigan, Wyoming, Pennsylvania and Utah.
