Are you planning to retire soon? Don't make the wrong decision and end up in one of the worst states to retire in 2023. In this video, we will look at the top 5 worst states to retire in 2023, so you can make an informed decision and find the perfect place to spend your retirement. Join us as we investigate the economy, cost of living, taxes, safety, and more to determine the worst states for retirement in 2023!

According to a recent study by AARP, over 234,000 retirees relocated in 2022. Are they leaving the worst states and upgrading to a better place for their retirement? WalletHub recently released their list of the Best and Worst States to retire for 2023 and you’ll be surprised at how the results differ from the reality of what people are actually doing.

@Wallethub   Study: https://wallethub.com/edu/best-and-worst-states-to-retire/18592

@AARP  Top 5 States Where Retirees Are Moving: https://www.aarp.org/retirement/planning-for-retirement/info-2023/most-popular-relocation-states.html

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Read The Transcript

Are you planning to spend your retirement in one of the worst states to retire in? In this video we are discussing the top 5 worst states to retire in 2023

Hey everyone, I’m Johnathan Rankin from Theorem Wealth Management, where our goal is to help you maximize your retirement. If you're getting close to retirement, you have a lot of decisions to make, including where you'll spend your golden years. Your choice of location can have a significant impact on your retirement experience.

Think of it this way: when you're on a road trip, you don't just drive to any random place, you carefully choose your destination based on your interests, budget, and comfort level. The same holds true for your retirement destination. And just like any good road trip, you'll want to plan ahead and avoid roadblocks along the way.

According to a recent study over 234K Americans moved to retire in 2022. That was 4% more than in 2021.

1 in 8 retirees who relocate do so to cut housing expenses. With the high levels of inflation we have seen over the past few years, cutting costs can be very important when it comes to your long term retirement success. Last year, Florida was the most popular state to move to, but where were people moving from? The state that saw the most retirees leave was Oregon with 9.8%, that was followed by Maryland, Idaho, Texas and Virginia.

Those might be the most popular states for people to leave, but are they actually the worst states to retire?

When you break down what people want in retirement, it really comes down to 6 things.

Affordability, Safety, Culture, Access to good Healthcare, good weather and family.

With Oregon being among the top 5 most expensive states to buy a house in, that likely contributes to why people are leaving.

Wallet hub recently released its annual study of the best places to retire in 2023 and if you haven’t checked out the video, we did cover the top 5 best states, you can check that out right here because in this video we are looking at the worst states for retirement.

To help quantify what most people look for in retirement, Wallet Hub compared the 50 states across three key dimensions: 1) Affordability, 2) Quality of Life and 3) Health Care.

They evaluated those dimensions using 47 relevant metrics each with a different weight based on importance. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for retirement.. So when you think about those 6 things people want in retirement Affordability, safety, culture, access to good healthcare, good weather and proximity to family, Wallet hub went a step further and attached measurables so you can quantify each aspect.

Taking a closer look at each dimension, The Affordability dimension accounts for 40 total points and includes factors such as the adjusted cost of living, tax-friendliness, annual cost of in-home services, and the share of the population aged 65 and older who cannot afford a doctor visit. For Quality of Life, 30 total points were used to evaluate factors such as the share of the population aged 65 and older, elderly-friendly labor market, access to public transportation, and the mildness of the weather. Finally, Health Care, with 30 total points, considered factors such as the percentage of residents who are fully vaccinated against COVID-19, family medicine physicians per capita, and the share of geriatricians required to meet estimated need.

Each state was given a score based on the weighted average of all metrics, and the final ranking was determined by the overall scores.

The state that had the lowest score and 2023’s worst state to retire to was Kentucky. Followed by New Jersey, Mississippi, Oklahoma and New York

When we compare that to the states people are actually leaving which were Oregon, Maryland, Idaho, Texas and Virginia.

Not one of those states were in the bottom 5 in the Wallet Hub study.

Based on the metrics in the Wallet hub study, Oregon ranks 38th , Maryland is the lowest in this group at 42, Idaho is actually in the top 10 at number 9, Texas comes in at number 39 and most interesting is that Virginia actually ranks in the top 5 the best places to retire, but to find out which spot in the top 5 make sure you check out our other video.  

As with any study like this, it is important to dig into what the methodology is. That is why there is likely a big difference between metrics and reality of what people are actually doing.

That is because the study weights factors in a way that may not be the way you would rank them in importance. For example, in the Wallet hub study, when you dig into the metrics contributing to the healthcare score that accounts for 30% of the total, the highest weighted metrics are

% of residents 12 years and older who are fully vaccinated against Covid, family medicine physicians per capita, share of geriatricians required to meet estimated need and top rated geriatrics hospitals. You might look at all of the factors listed here and assign a completely different weighting to each category and that could change the entire outcome of the study.

That is why it is important to understand the metrics that go into studies like this before you make any big decisions. Because what might be important to you may not be what’s measured in studies like this. Before you make any big moves, write down what matters most to you and your individual lifestyle and then you can use studies like this to help you gather the data that matters to you.

Now if you are planning on retiring, one of the biggest questions I get is whether or not a million dollars is enough to retire on, to find out, make sure you check out this video. I’ll see you there.

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