Alaska has been ranked as the worst state to retire in for the third consecutive year despite its size and allure, Bankrate’s 2024 study finds.
The study evaluates all 50 states across five weighted categories.
The categories are affordability (40 percent), overall well-being (25 percent), quality and cost of healthcare (20 percent), weather (10 percent), and crime (5 percent).
Bankrate’s assessment indicates that Alaska falls short in several areas.
The state’s low ranking in the weather category, where its extreme temperature fluctuations from summer highs of 75°F to winter lows of -10°F make it less appealing.
Alaska’s high cost of living, about 30 percent above the national average, also poses a challenge for retirees.
Housing, utilities, and healthcare expenses are notably higher, with healthcare costs nearly 50 percent more than the national average, according to RentCafe.
On the positive side, Alaska benefits retirees with a favorable tax environment.
The state does not impose income tax, estate tax, inheritance tax, or tax on Social Security benefits and pension payments.
The study also highlights other states with high living costs that rank poorly for retirement, including New York, Washington, and California.
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While these states are known for their high expenses, retirees should not dismiss them entirely as potential destinations.
Higher living costs may require more substantial retirement savings, but other factors such as quality of life and personal preferences should also be considered.
Kerry Hannon, a retirement expert, said: “Having that sense of community and human connection is huge to healthy aging.
“Isolation and loneliness are not something you want to move toward, so look for your community.”
