Study reveals the most ‘retirement-friendly’ U.S. states: Arizona ranks second
- A new study ranks Arizona second among the best states for retirees based on affordability and safety-related factors.
- Arizona performs well across key factors, notably benefiting from the nation’s second-lowest property tax rate, and above-average annual earnings of $63,692.
- Rounding out the top three states are Idaho in the top spot, and North Dakota in third.
A new analysis of socio-economic factors affecting the accessibility and ease of retirement across the U.S. has revealed a ranking of the states where retirement may be most difficult and most attainable.
The study by home care agency Polaris Home Care analyzed twelve social and economic factors, including crime rates, annual medical costs, housing costs, and state salaries, in each state. This analysis revealed an index score out of 100 for every state based on retirement accessibility, with higher scores indicating it is easier to retire.
Arizona findings:
Arizona is second on the list (90.67), with the findings revealing that residents have above-average annual earnings at $63,692, and below-average monthly utility costs estimated at $524. This higher income and lower costs can translate to better retirement savings. The state also has the second-lowest property tax rate in the nation at 0.41%, equaling $1,766 annually on the U.S. median home value.
Table: Top 10 states where retirement is most attainable
| Rank | State | Retirement Index Score (/100) |
| 1 | Idaho | 100.00 |
| 2 | Arizona | 90.67 |
| 3 | North Dakota | 90.48 |
| 4 | Virginia | 87.48 |
| 5 | Alabama | 86.34 |
| 6 | Wyoming | 84.42 |
| 7 | Florida | 83.77 |
| 8 | Mississippi | 83.56 |
| 9 | Minnesota | 82.98 |
| 10 | Michigan | 82.88 |
Idaho ranks as the most retirement-friendly state, based on affordability factors (scoring 100.00 in the index). The state performs well across key factors, benefiting from one of the lowest annual medical expenses in the nation at $8,148 per capita and above-average annual earnings at $63,894, allowing residents more financial flexibility for retirement. Additionally, the state ranks among the safest states with the third-lowest total crime rate in the U.S., at 1,443.3 per 100,000 population, about 41% lower than the national average.
North Dakota comes in third (90.48), offering average earnings of $65,127 and one of the lowest annual food and beverage expenditure rates across the states, at $3,810 per capita, over $500 less than the average. However, average medical and health spending is on the higher side, at $11,301 annually per capita.
Virginia ranks fourth (87.48), with the tenth-highest average annual earnings in the country at $68,597. The state also has one of the lowest violent crime rates at 208 incidents per 100,000 people and a total crime rate around 24% lower than the national average at 1,850.7 incidents per 100,000 population, highlighting the above-average safety levels offered in the state.
Alabama completes the top five states where retirement is most attainable (86.34). The data revealed that Alabama ties with Arizona with the joint-second-lowest average state property tax rate of 0.41%. Residents in the state also benefit from below-average medical expenditure and food and beverage spending per capita.
Sixth is Wyoming (84.42), followed by Florida in seventh (83.77) and Mississippi in eighth (83.56), while Minnesota (82.98) and Michigan (82.88) round out the top ten states.
Table: Top 10 states where retirement is least attainable
| Rank | State | Retirement Index Score (/100) |
| 1 | Alaska | 41.44 |
| 2 | Missouri | 49.69 |
| 3 | Texas | 53.49 |
| 4 | Nebraska | 61.52 |
| 5 | Louisiana | 61.55 |
| 6 | Illinois | 62.64 |
| 7 | Oregon | 62.86 |
| 8 | California | 63.26 |
| 9 | New Jersey | 63.38 |
| 10 | Kansas | 64.41 |
According to the data, Alaska ranks as the state where retirement is the most challenging (41.44). Despite having one of the highest average annual earnings figures in the U.S. at $70,196, residents also face some of the highest average costs of utilities ($658 monthly), medical spending ($13,642 annually per capita), and food and beverage expenditure ($4,811 annually per capita). This means seniors may still find it challenging to save sufficient sums for retirement. It was also identified that the state has the highest violent crime rate in the nation, at 837.8 incidents per 100,000 population.
Missouri follows in second (49.69). The state was found to have average annual earnings below the national average, at $57,263. Additionally, residents face the second-highest average monthly utility costs at $679 and the second-highest average annual spending on gasoline and other energy at $1,884 per capita.
Texas is third on the list (53.49). It was identified that the state has the fourth-highest average state property tax rate at 1.38%, which equals $5,945 annual tax on the U.S. median home value. The state also has an above-average total crime rate of 2,809.6 incidents per 100,000 population, and above-average monthly utility costs at $605. Texas has the second-lowest proportion of residents aged over 65, at just 13.75% of the state population.
Nebraska ranks fourth (61.52), with the figures revealing that the state has average annual earnings of $57,361, over $5,000 below the national average identified. While residents benefit from one of the lowest average monthly utility costs in the U.S. at $491, they also have the nation’s highest average annual gasoline and energy spending at $1,906 per capita, equaling 39% higher than average.
Louisiana rounds out the top five states where retirement is least attainable (61.55). The average salary is $58,950, which is below the national average, and the average annual medical spending is $10,515 per capita. It was also identified that Louisiana has the highest property crime rate in the U.S., at 3,162 incidents per 100,000 population.
Illinois ranks sixth (62.64), followed by Oregon in seventh (62.86) and California places eighth (63.26). Rounding out the ten most challenging states are New Jersey in ninth (63.38) and Kansas (64.41) in tenth.
Greg Kemper, CEO of Polaris Home Care, commented: “According to an opinion poll by the National Institute on Retirement Security, almost four out of five Americans agree there is a retirement crisis. This relates to financial insecurity and concerns about the affordability of retirement and the standard of living of retirees.
“This is primarily due to growing concerns about the rising cost of living across the country. Considering various factors that impact the affordability of retirement, the study findings reveal regional disparities in this accessibility. “What stands out in this data is that high earnings alone do not guarantee an easier retirement. Alaska has some of the highest wages in the country, yet living costs and safety concerns push it to the bottom of the rankings. Overall, the findings highlight the importance of being able to balance income and living costs when it comes to the ability to future-proof savings.”
Compiles by: https://polarishomecare.com/
