Despite being known for a city so nice they named it twice, New York has been ranked as the second-worst state for retirees in Bankrate’s latest Best States to Retire Study. While New York City boasts cultural and financial significance, the overall lack of affordability has pushed the state to the 49th position in Bankrate’s rankings, just ahead of Alaska.
New York scored 49th in affordability in Bankrate’s study, placing it ahead of only California in this category. Affordability accounts for 40 percent of a state’s overall retirement score. New York also ranked poorly in weather, crime, and health care categories, but excelled in well-being, which includes diversity and entertainment options.
While New York offers high-wage jobs, affordability remains a concern for many retirees struggling with income issues. States like Delaware, which ranked as the top state for retirement in 2024, offer a good mix of affordability and amenities.
Reasons for New York’s Low Retirement Ranking
New York’s overall ranking in the Best States to Retire Study was influenced by several factors, including:
- Affordability (40 percent): New York ranked 49th in this category, with property taxes, sales tax, homeowner’s insurance premiums, and cost of living contributing to the score.
- Well-being (25 percent): New York ranked fourth, considering factors like the number of older adults, community well-being, diversity, and entertainment establishments.
- Quality/cost of health care (20 percent): New York ranked 32nd, based on health care costs, establishments, and overall performance.
- Weather (10 percent): New York ranked 37th, factoring in natural disasters and average temperature.
- Crime (5 percent): New York ranked 33rd, looking at violent and property crime rates.
High emphasis on affordability often leads to lower rankings for states like New York, California, and Washington in retirement studies.
Best and Worst States for Retirement in 2024
| Top 5 | Bottom 5 |
|---|---|
| 1. Delaware | 50. Alaska |
| 2. West Virginia | 49. New York |
| 3. Georgia | 48. Washington |
| 4. South Carolina | 47. California |
| 5. Missouri | 46. North Dakota |
New York’s Affordability Challenges
New York’s affordability ranking was particularly low, with poor scores in subcategories like cost-of-living index, property taxes, state and local taxes, and home insurance premiums.
Property taxes in New York ranked 48th, with an average annual tax of $7,936 for an average-value home. Home insurance premiums were also middling at 24th place, averaging $1,690 annually.
Crime rates in New York, while not a significant factor in the overall ranking, placed the state at 33rd with notable rates of violent and property crimes per 100,000 residents.
Weather and Health Care Concerns
New York’s weather, known for harsh winters and lake-effect snow, contributed to its 37th ranking, while health care quality and cost placed the state at 32nd. High health care costs and moderate number of health care facilities per capita were key factors.
Positive Aspects of New York: Well-being
New York excelled in the well-being category, ranking fourth overall due to factors like community well-being, diversity, and entertainment options. The state also scored well in arts and recreation establishments per capita, showcasing its cultural richness.
Considering Retirement in New York
Despite some positive aspects, New York’s affordability challenges may deter retirees. Careful budget consideration is crucial, especially given the state’s high cost of living. Utilizing tools like the Bankrate calculator can help determine housing affordability.
Working with a financial advisor can also make retirement dreams in a high-cost state like New York feasible. While the state offers cultural richness, affordability remains a key factor for retirees.