KY named the worst state for retirement in new analysis. Life expectancy is a factor
If you’re looking for the prime state to retire and live out your golden years, taking Kentucky off the table entirely might be a good bet.
That’s according to a new analysis by the financial website WalletHub, which ranks the Bluegrass State dead last among its list of the best and worst states to retire.
The analysis gave Kentucky substandard marks for quality of life and health care. It also ranks near the bottom for life expectancy, according to a previous Herald-Leader report.
On the bright side, the state fared much better for adjusted cost of living, coming in fourth place ahead of Arkansas, but behind Oklahoma.
Here’s a breakdown of how Kentucky fared in the ranking and what methodology was used.
How did WalletHub determine which states are best to retire in?
The website said it compared the 50 states across three dimensions: affordability, quality of life and health care.
To shape its analysis, WalletHub looked at 47 different indicators and assigned each a weight. Each indicator was graded on a 100-point scale, with 100 representing the most favorable conditions for retirement. In its analysis, WalletHub also accounted for varying population sizes from state to state.
WalletHub then calculated weighted, overall averages for each state using rankings across all 47 indicators.
Why Kentucky ranks last as a retirement state
According to WalletHub, Kentucky is the least retirement-friendly state behind New Jersey, Mississippi and 47 other states.
In its analysis, WalletHub assigned the Bluegrass State an overall, composite score of 38.80, factoring in its performance on affordability (33), quality of life (41) and health care (46).
As pointed out in a previous Herald-Leader report, Kentucky ranked 47 out of 51 states and the District of Columbia for life expectancy in 2020. Only Alabama, Louisiana, West Virginia and Mississippi had lower life expectancy than the commonwealth.
The Bluegrass State has a total life expectancy of 73.5 years.
Still, Kentucky is far from the most expensive state to retire in, at least compared to the top state for the category: Hawaii.
Here are the least expensive states to retire in, according to WalletHub:
- Alabama
- Mississippi
- Oklahoma
- Kentucky
- Arkansas
Which U.S. states are the most expensive to retire in?
WalletHub ranked Hawaii at the top, followed by Massachussetts, California, New York and Alaska as the most expensive states to retire in.
While you might be tempted to narrow your search for the perfect retirement state by preferences, like focusing mostly on your aversion to shoveling snow or having the lowest tax bill, that could be a mistake.
In an interview conducted with aging experts, Dawn Carr offered insights into the key factors to take into account when making such a decision. According to Carr, an associate professor at Florida State University, retirees should keep in mind that states with no income taxes tend to have other ways to collect revenue.
“It is important to keep in mind, however, that states that have no state income tax do often have other forms of taxes that, depending on your lifestyle, may end up being just as expensive. It is important to think about not only taxes, but whether you will have the money you need in a place that best meets your need,” Carr told WalletHub.
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