Retirement is not simply a matter of finances, it is also a deeply personal decision.
There are numerous reasons why individuals opt for relocating to different areas. For some, being in close proximity to their loved ones or social circle is of utmost importance. While for others, factors such as affordability or a warmer climate may play a significant role in their decision making.
Bankrate, a consumer financial services company headquartered in New York City, has released its list of the best and worst states for retirement in 2024. The rankings are based on several factors, including cost of living, health care expenses, weather, crime rates, and overall well-being.
Washington ranks as the third-worst state in the nation for retirement, as per the latest rankings.
Jared Walczak, the Vice President of State Projects at the Tax Foundation, stated that retirees, particularly those with higher income, are finding Washington to be less appealing.
Bankrate’s survey received its information from the Tax Foundation.
He pointed out that implementing a capital gains income tax would result in a 7% tax on higher gains. This could potentially have a major impact on retirees who are receiving taxable investment income in their later years.
According to Walczak, Washington’s estate tax serves as an additional factor that may prompt individuals to consider retiring elsewhere.
According to him, the estate tax rate in Washington is the highest in the country. This makes it more difficult for affluent retirees who wish to leave behind a legacy for their family, as compared to other states.
According to the previous year’s report, Washington was ranked as the fourth-worst state for retirement.
In calculating the results, the Bankrate survey took into account various factors, not limited to taxes. However, the survey results were based on a weighted average, with affordability comprising 40% of the total score.
In 2024, retirees will find Delaware to be the top state to settle in, as per the report. Following Delaware closely are West Virginia, Georgia, South Carolina, and Missouri, making them great options for retirees to consider.
In this year’s survey, Delaware has taken the top spot for retirement, while Iowa, previously ranked as the best state for retirement in the 2023 survey, has dropped to ninth place.
According to the report, Iowa’s decline in the rankings can be attributed to an increase in the cost of living, property taxes, and homeowner’s insurance since last year.
According to Walczak, Washington is not an ideal state for retirement due to its high taxes, despite not having an income tax.
He cited the instance of Washington’s business and occupation tax on gross receipts, explaining that although it is not paid directly, it significantly increases the cost of goods in the state, far more than in other states.
According to Walczak, there is a new proposal for a significant tax in Washington almost every year.
According to Walczak, the Tax Foundation will closely monitor the developments in November, as the Washington voters will be presented with a crucial decision of repealing the capital gains tax through Initiative 2109.
In November, Washington voters will have the chance to weigh in on several initiatives, including Initiative 2066, which aims to safeguard energy choice in the state, including the use of natural gas. Additionally, Initiative 2117 seeks to repeal the Climate Commitment Act, while Initiative 2124 aims to provide residents with the option to opt-out of long-term care insurance under the WA Cares Act. These initiatives will be important issues for voters to consider in the upcoming election.
