These 5 U.S. states make retirement a financial nightmare for seniors
Retiring comfortably in some U.S. states is becoming increasingly difficult due to rising costs. High taxes, steep property prices and general living expenses put pressure on seniors, particularly those on fixed incomes. Five states stand out for their financial challenges, making retirement harder for many older residents.
California tops the list for income tax, with a rate that hits retirees hard. Around 12% of seniors there live in poverty, leaving little room for cuts to Social Security benefits. The state’s high living costs add to the strain.
New York follows closely, with both high state income taxes and property taxes. Over 14% of its elderly population struggles below the poverty line, making budgeting even tighter if benefits shrink. Massachusetts demands significant savings—at least $1.28 million—to retire without financial worry. High state income taxes and property costs push nearly 11% of seniors into poverty, leaving many vulnerable to rising expenses. Hawaii’s tropical appeal comes at a price, as it holds the highest cost of living in the nation. Retirees face steep daily expenses, making it tough to maintain comfort even in paradise. New Jersey imposes the heaviest property tax burden alongside a high state income tax. These costs weigh heavily on seniors, especially if Social Security payments are reduced.
For retirees in these states, financial planning is critical. High taxes, property costs and living expenses create real challenges, particularly for those with limited savings. Without careful budgeting, many seniors risk struggling to cover basic needs in their later years.
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