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New York tops list of least affordable states to retire in

If you can make it there — you better plan to retire elsewhere.

The Empire State ranked at the very bottom in terms of affordability, and 46th overall when factoring in quality of life and healthcare, according to a report by WalletHub comparing all 50 states.

Although it ranked in the top 10 in terms of quality of life and 16 in health care, New York’s overall score was clearly weighed down by its affordability rating.

The poor score is likely due to the fact that New York has the second-highest cost of living behind Alaska and third-highest tax rate of any state.

The report noted that even with $1 million in retirement savings, the average person would only be able to cover about 14 years of expenses.

“Retirees must evaluate the burden of state and local taxes when making their residential decisions,” Geographer Stephen Golat, a professor at the University of Florida, said in the report.

Affordability was calculated using data from various agencies such as the US Census Bureau and the Council for Community and Economic Research.

The state’s poor score is likely due to the fact that New York has the second-highest cost of living behind Alaska and third-highest tax rate of any state.

Neighboring New Jersey did not fare any better, coming in 49th in affordability, followed by Vermont, Massachusetts, Maryland, Washington, Connectiut, Maine, Illinois and Oregon to make up the bottom 10.

On the other end, Alabama was ranked as the most affordable state to retire in, followed by Tennessee, West Virginia, South Carolina, Wyoming, Delaware, Georgia, Arkansas, Florida and Mississippi.

In overall ranking, Kentucky, New Jersey, Mississippi, Oklahoma and New York made up the five worst states to retire in.

The report noted that even with $1 million in retirement savings, the average person would only be able to cover about 14 years of expenses. Getty Images/iStockphoto
Affordability was calculated using data from various agencies. Getty Images

Virginia was picked as the best place to retire in, with Florida coming in second, followed by Colorado, Wyoming and Delaware.

While affordability is likely the top concern for most in or nearing retirement, Alan Castel, a professor at the University of California, warned Americans to fully evaluate their needs before making a move to a less expensive state.

“While the cost of living is often high on the list, people often consider being close to family, transportation, health care access, outdoor/creative activities, political aspects/government, and a place where someone will have a sense of community, in order to feel both comfortable and stimulated,” he said.

“It is important to consider access to community services that allow for accessibility to programs that cultivate interests.”