Top 15 Worst States for Retirement in 2021


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2. Illinois

Illinois Chicago
Source: Pixabay

Illinois is a bad choice for retirement due to its lack of affordability. It ranks 40th out of the 50 states. Not only that, but a WalletHub study showed that Illinois is the worst state to be a taxpayer.

The average household pays almost 40% more in state and local taxes than the national average. Property tax on an average home is close to $5,000. Sales tax and gas tax are high as well. Additionally, estates worth over $4 million are subject to tax.

What’s more, is that tolls on the eastern half of the state can get quite expensive. Thankfully, getting an I-PASS can make traveling on the Illinois Tollway less costly.

1. New Mexico

New Mexico
Source: Pixabay

Coming in at #1 on the list is New Mexico. There are several reasons why you shouldn’t consider moving to New Mexico during your retirement years:

  • You will have to pay taxes on your Social Security benefits, retirement account distributions and pension payouts.
  • Sales taxes are above average.
  • You’ll find it difficult to access quality health care.
  • Nursing homes and memory care services are costly.
  • There’s a lot of property crime.
  • The poverty rate tops 18%.
  • The quality of education consistently ranks low.
  • The altitude and dry air can be tough for people with breathing difficulties.

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