Bankrate, a New York City-based consumer financial services company, is out with its 2024 best and worst states for retirement, based on cost of living, health care costs, weather, crime statistics and overall well-being
Carleen Johnson
The Center Square Washington
Deciding where to retire someday is not just a financial choice, but a personal choice as well.
Many people want to be close to family or friends, or perhaps move somewhere that is more affordable, or offers a warmer climate.
Bankrate, a New York City-based consumer financial services company, is out with its 2024 best and worst states for retirement, based on cost of living, health care costs, weather, crime statistics and overall well-being.
According to its rankings, Washington is the third worst state in the nation to retire.
“Washington has become less attractive to retirees, especially wealthier retirees,” said Jared Walczak, vice president of state projects at the Tax Foundation.
The Tax Foundation provided information for Bankrate’s survey.
“The adoption of a capital gains income tax imposes a 7% tax on larger gains,” he noted. “For retirees realizing taxable investment income in later stages of life, they could face a significant hit.”
Walczak told The Center Square, Washington’s estate tax is another reason those looking to retire may step outside Washington.
“Washington has the highest estate tax rate in the country,” he said. “For the wealthiest of retirees who may want to leave a legacy to family, Washington makes that harder than other states.”
In last year’s report, Washington ranked fourth worst for retirement.
The Bankrate survey looked at many other factors, not just taxes, but the results were calculated in a weighted average, with affordability making up 40% of the overall score.
The report said Delaware is the best state for retirees in 2024, followed by West Virginia, Georgia, South Carolina and Missouri.
Delaware moved from second to first place this year, and Iowa, listed as the best state for retirement in the 2023 survey, dropped to ninth place.
The report says Iowa’s drop in the rankings is due to cost of living, property taxes and homeowner’s insurance all rising since last year.
Washington does not have an income tax, but other high taxes, according to Walczak, make the state undesirable for retirement.
“For example, Washington’s business and occupation tax on gross receipts,” he said. “While you don’t pay that directly, B&O taxes drive up the cost of goods in Washington, much more than other states.”
“It seems like every year there is a proposal for a major new tax in Washington,” Walczak added.
Walczak says the Tax Foundation will be watching with interest to see what happens in November, when Washington voters will be asked to repeal the capital gains tax via Initiative 2109.
Three other initiatives will also be on the November ballot: Initiative 2066 to protect energy choice in Washington, including natural gas; Initiative 2117 to repeal the Climate Commitment Act; and Initiative 2124 to make the state’s long-term care an option out of the WA Cares Act for long-term care insurance.
This report was first published by The Center Square Washington.
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