4 Reasons Why Not to Retire in These 7 States

I suspect the author erred in the next to the last paragraph where he indicates, "But Macdonald took it off because it is a net energy importer and thus doesn’t face quite as much pressure." but meant to say that Texas is a net energy EXPORTER.

:???:if north carolina is one of seven states not to retire to, why is it that you list ashville as a top retirement city?????

In the article "What are the Best States for Retirement" (linked at the bottom of the page, Florida, North Carolina, California and Texas are listed. So which article is accurate?

I second Ed Antonini's comment. We are within a year of retirement and have been looking intensely at houses around Asheville.

During this economy we all need help and not writers making things worse by negitive coments. Writers like this help "put the nail in the coffin" regarding the economy of thes states. As a retirment newesleter I am very diapointed in your website and will tell all my fellow retires not to log anymore since you are as bad as this writer

I have news for these people...my hubby and many former New Jerseyites are moving back to NJ!
We've lived in the South and it's not "home" to us.
Watch the stats...more folks are moving BACK HOME.

I'd like to know how Texas could have qualified for the list when the Texas economy has been sited by Forbes.com as the strongest in the nation and they also listed several Texas cities as the best in the nation for jobs. The PEW Center on the States even listed Texas as one of the few states least like California for state fiscal peril.

I can see why New Jersey is on his (not a place to go)list. I live here and the taxes never, ever stop going up. Small stores/shops are closing continuously and the home prices are in decline. It is funny how we are on the list for one of the top ten places to retire. Retirees cannot afford the HIGH taxes and Jersey is Number one in the country know for it's taxes.

:???: You can't have it both ways...either North Carolina is a good place to retire to or a bad place. Which is it? Sounds like typical corporate BS. You've lost me as a subscriber.

I would like to say that this article is quite useless!! As a few readers already pointed out,...the states listed here among the worst like N.Carolina and Florida are quite questionable. They are still among the most popular retirement destinations. The Carolinas especially have surplanted Florida as the main retirement destination of baby boomers and is considered by many to be one of the better states to retire to. I think the criteria and ersatz facts used by the writer needs to be re-evaluated and examined in a more sensible context. As another matter, New York should also be right up there with New Jersey as one of the costliest States to retire in unless you live in rural areas of both of these states. Like I said, the article is pretty much useless in my opinion.

Thinking of California. Surprised Oregon is not included as worst (where I am now) as citizens just passed MAJOR increase in Income tax (3rd highest in 50 states. Nike founder talking of moving ENTIRE company to Idaho = 27,000 lost jobs just with Nike employees which affects 100,000+ others INTEL and HP have stopped future R&D expansion due to new law. Unemployment at 12%+ now and could with NIKE, INTEL and HP gone jump to 20% +. Re think the list... not really accurate from othe rinformation on the internet. Think your source needs to do MORE Homework

California has a 12 (some say 15)% unemployment rate. They are first in gas taxes, sales taxes and vehicle taxes. We're Billions in the hole and I'm guessing more taxes and lack of services will increase. I was born here and right now I'm disgusted on how it's been run into the ground.

Hi,
Thank you for publishing coments on Macdonald's article including my coment. I take back what I said about not looking at your website anymore. Since you showed courgae in facing our "outrage". I now have new found respect for your website and publisher.

Thanks Jerry, you are very kind. Appreciate the 2nd chance!
John

Florida could double it's taxes and still cost less to live in than many northern states for one simple reason WINTER.

I was wondering why New York wasn't on the list. A few years ago they destroyed a brand new multi million dollar nuclear reactor in I believe Long Island so they couldn't change their mind and use it in the future.

How would I find out if a state is financially healthy? I found it ironic that a follow on article talks about retirement friendly states (usually because they don't tax retirement) and three of them are on the list of 7 who are in bad shape financially, Fla, NC and Cal. We are looking at PA and DE. I'd hate to move from Jersey to one of these places and find out it too is about to go belly up. So where/what to look for to check a states financial health.--
Comment from Topretirements editor: Try the Pew Center for the States. they have a map and you
click on any state for more info http://www.pewcenteronthestates.org/

also, try searching for organizations like the National Governors Association.
http://www.nga.org/portal/site/nga/menuitem.b14a675ba7f89cf9e8ebb856a11010a0

My husband and I are both retired from the Military and currently living in NC. We will be leaving in the summer of 2011. Although NC doesn't tax our Military retirement, the county that we live in has raised property taxes the last two years. Also, because we will close to the coast, our insurance premieums are through the roof. The area we live in has the youngest population, due to the military, which drives up our auto insurance rates on our children.
We are exploring all areas to relocate, but are it is close to the West Coast (Not Cali), so that we can be closer to our family.

I understnd completely the two sides of moving to North Carolina. I moved here several years ago and wanted to build my small retirement home. Construction costs here are unbelieveable mainly because it takes several times to do it,tear out and then that out and do it again then again. Our costs are now at $350 per foot and we are not finished - about double what the builder and architect said and what we had budgeted. It seems that workmen here just don't know what they are doing and don't care. Something like a Katrina event. Too much building has led to very poor workmanship and extreme costs often around $1000 perday per worker. They don't have to worry because there's always somebody else waiting. Existing houses with serious problems are being fluffed and put on the market. Medical and dental is poor and has caused many trips to Atlanta just for the basics. Local and state government also has grown accustomed to unlimited tax payments which are the highest of any place we have ever lived. Property taxes just get bumped rather than an analysis of cost cutting or waste. Growth stays out of control to generate the dollars lowering the quality of life and services.
On the other hand, it is beautiful. The weather is not as moderate as we were told but OK. There are beautiful mountains and lakes. Some activities in Asheville but not much anywhere else.
If we had known, we would not be here.

:sad: We are looking to get out of NJ when we retire, the property taxes are TOO high. We just want a little nice retirement community without all the fancy tennis courts,golf courses,pools,club houses and etc that drive up the cost of the yearly association fee. We would like to live in a nice SAFE area that doesn't cost an arm and a leg. Living on a fixed income is not easy. Any suggestions?

I agree with Ari, I have a friend, he’s nearing his senior age and is currently planning for his retirement and told me that he won’t go for New Jersey- a definitely not to go list. The way of living is somewhat expensive for it’s taxes.

Rust

We live in SE Tenn bordering NC and GA. We hear more panic stories from Georgia than from NC. Most of states are hurting but seems to me that the author didn't get ALL the facts together.

I also agree with Pammy - a lot of people are moving back to where they came from. If my husband wasn't gainfully employed right now, we'd be going back north too! Sure, taxes are less in the south but, you get what you pay for!

March 30 - See NY Times article - "Payback Time- State Debt Woes Grow Too Big to Camouflage" http://www.nytimes.com/2010/03/30/business/economy/30states.html

my wife and i are about to make the leap into retirement. currently in California and desperate to leave, after 30 years. have to agree that California is not a good place to retire. the elected leaders have ruined this state with unbelievable thinking. we are going to wander down the road, in search for the new paradise. no place is perfect, but old traditions and friendly people do exist out there, somewhere, we just have to keep our faith up and our eyes open. call us gypsies if you like, but we are leaving with a clear vision for the future.

I'm in Raleigh NC. Don't know where Susan is but if she is building and they keep having to tear out and do again I have serious doubts about who she is hiring or dealing with. As far as medical and dental NC is far and above anything I had in a decade in Atlanta. UNC and Duke medical is superior in the nation. My home here in NC is much better quality than mine was in GA.
I think she probably just needs to move back to Atlanta. I'm still working at 63, walk to my office about 1/2 mile from my home. No 90 minutes sitting on interstates twice a day. I can be in downtown Raleigh in under 15 minutes or the deep woods around Falls Lake in five. There's nothing wrong with NC.

Michigan one of the worst, eh?
Great, less people for us to deal with, less crowds, and way less traffic.
If you've never been to our blue lakes, our sparkling rivers, and our "Up North" ambience, well, that's your problem!
Michigan is not Detroit!

Phoenix is listed as a good place to live, but Arizona needs to be added to the list of 7 Worst states. I am retired there now, and I'm looking to move as soon as my husband retires. Our state tax was just raised to 9.1%. It's supposed to be temporary for 3 years, but the same night the raise was voted in, the legislature was saying that it may not go away. Backpeddling before all the votes were counted. I predict that in 3 more years, it will be up to 10+%. Social Security and retirement pay are taxed. We were at the top of the U.S. list for hit and run accidents and car thefts. Illegal immigrants and drugs are pouring over the border like the oil into the Gulf of Mexico. This is no longer a good place to be. Live here at your own risk. It's getting way too expensive for retirement living unless you are very wealthy.

#1. 4 out of 7 are in the snow belt! live in Illinois and if you dont have family here it would be a huge stretch to imagine why you would want to Retire here.
#2. I dispute the statement that Florida imports vast amounts of electrical power..BUT remeber many states work in cooperation on Electrical supply / The building of Power Houses..
Susan... I am sad to hear about your cost to build BUT I am not surprised at all. Its become common where Greedy Contractors attempt to use unskilled and or..Untrained workers to perform a job that does require skill knowledge and training..

Nice post! Keep it up. ;)

I lived in NJ and SC and both are high in taxes. SC has property tax on everything and when you renew your car registration they charge you a playground tax and you pay it or you don't get your car registered.

Georgia is Ok place to retire. I lived in 15 places before moving to the suburbs of Atlanta. The state has issues but they do not tax SSI or pension up to $ 35,000 a year. North Carolina was option # 2, but as with new constructon along the cost was very expensive and homeowners insurance was really expensive.

Any of you folks who want to buy a small farm with small cedar log cabin in Western Kentucky can give me a call. I love the place, but want to move closer to children. 60 acres, 45 woods, 12 acre corn income, deer lease income, pond, shed, wild turkey, rabbits, squirrels, great neighbors and probably less money to buy than where you are! Between Paris Tenn., Murray Ky., Paducah Ky. A wonderful place to retire. Good luck. Teresa:lol:

Avoid California at all costs. We really just want to keep it to ourselves.

Fifteen months ago hubby and I moved to Rancho Mirage, CA from Northern VA.
Alan, I would gladly move back East at any time and leave CA for you. We moved here to be close to family in Laguna. Riverside County is dirt poor, has very high unemployment rates, and is downright boring unless one is into chasing balls all day. We have always lived in HOA communities with few if any problems. This is a gated (terrible idea) non age controlled community with a high number of snowbirds and rental homes. The gates do nothing for security but they do provide the sense of exclusivity that the good folks of So. CA so desire. I'd gladly shovel snow in order to live where people actully care for their own homes and not have to hire someone every time they sneeze. :sad:

Love the article and all the comments. I am a lifelong southern Californian looking to get out so my teenage children have a chance at a decent life. There is no possibility of that anymore in beautiful CA. So sad to watch it implode.

:smile:cindi,
Check out Moscow, ID 2 colleges 8 miles on the state line, little crime and no natural disasters...economy is good.

Oregon has high property taxes, hard for retirees. The joke to remain in your home.
Central Oregon cold in winter and hot in summer. Plan to sell and move elsewhere.

While this post may not surprise many or may not apply to many who read it, I am going to list one reason why retiring in PA may not be a good idea. While the state has tax laws favorable to retirees (at present, does not tax social security or retirement -- annuities/pensions--), it is one of two filial law states in the US; South Dakota is the other, I think. What does that mean for a retiree? If you exhaust your funds, have to go on Medicaid, etc. such as having to pay for a nursing home (even nursing home benefits are limited and sometimes difficult to get), PA/Medicaid will sue your children to get repayment. If your child returns to live in your home and care for you, that home may be sold out from under the child if neither you nor your spouse lives in it and the proceeds used to pay for your care. When there is no more to get from your estate, then your child or children very well may be sued for the balance. This is documented. Just google PA Filial Law. There are two elder law firms that discuss the implications. see: http://witf.vo.llnwd.net/o35/smarttalk/radiosmarttalk/RST_June122012.mp3; see: Elder Law in Pennsylvania (Jeffrey Marshall, ed., 3d ed. 2011), published by the Pennsylvania Bar Institute. See: University of Illinois School of Law's Elder Law Journal for its Fall, 2012 issue, is entitled Filial Support Laws in the Modern Era: Domestic and International Comparison of Enforcement Practices for Laws Requiring Adult Children to Support Indigent Parents. That academic paper (Abstract No. 2079753) can be downloaded from the Social Science Research Network (SSRN) free (32 pages, PDF); See In Health Care & Retirement Corporation of America v. Pittas, the nursing home obtained a judgment against an adult son for the cost of his mother's care with neither a contractual obligation nor "fault" on the son's part. I am not an attorney nor do I work for any. Just an ordinary daughter caring for parents in their home in PA. This is a law that must be overturned. If you live in PA, please let others know about it. If you do not, and decide not to locate in PA to retire, let the governor and board of tourism know your reason. I am contemplating moving out of state as soon as I can, and I hope my parents will come with me to my other home in another state.

Being that this article is 6 years old, does it remain relevant; or is it completed outdated?

Pa & retirement. I do not know about all the different laws but I know one thing and that Is we moved here (Carlisle) 1 1/2 years ago to be near the children and GC (DUH) and it is the worse financial mistake of my life!!

I can't wait to get out of Pa and will probably move back to Fl where we came from. Real Estate/School taxes alone are enough to make us want to move not even considering many other expenses and of course weather.

Again and again I have on this site = BEWARE and do you home work (we did NOT) BEFORE YOU MOVE and when you do move - RENT FOR A PERIOD TO DETERMINE IF THE MOVE IS WORTH IT.

"The one thing we learn from history - is that WE NEVER LEARN FROM HISTORY!"

Ella, it is still valid.

dear Robert,
You say that you moved to PA to be near your children and grandchildren, and it is the worst financial mistake you could have made. I am sorry you and your wife find yourselves in this situation. Mistakes are hard to live with and their correction can certainly be difficult. However, i'm a bit confused. You state you moved to be close to your family; however the mistake you cite is a reflection of your financial situation. You didn't move for financial reasons, but for relational ones. That's a bit like juggling apples and oranges, no?

Jill - Thank you for reminding me about the filial law issue. PA has been on my list for various reasons. While Robert has repeatedly warned against PA because of real estate taxes, some of those taxes are offset by not having a state income tax on retirement income, no sales tax on clothing and food, lower insurance costs, reasonable utility costs, etc. (Also have to consider higher gasoline taxes though.) In other words, finances are a complex situation and someone's bottom line as to whether PA is a good choice or not will vary depending on their retirement income and their housing plans. The filial law issue is another story. My spouse died in PA. He was on Medicaid in nursing home for the last year or two, when the case you cited hit the news. The State did not come after our kids but it certainly could happen -- my guess is that they're still working out how to do it (the filial law cases hit the newspaper when he was in the nursing home). This is a big, big negative for retirement in PA.

I would imagine the reason most people read comments on this site it to gather and consider information about possible moves to various states (?). Since finances and motives vary with people the only thing I/we can do is SHARE personal experiences and hope that this will HELP others in making decisions depending on their individual circumstances. If one does not wish to heed our advice/experience or has other opinions and experiences then "hallelujah" we wish them the best.

I have no other motive than to warn others that doing some really good "homework" BEFORE moving and then "renting" a period of time BEFORE purchasing is what in hindsight I now consider a very prudent exercise to
consider and put into practice. As I have often stated- I/we failed to do that and are now paying the consequences - which in our case(financial) are very severe.

Decisions have consequences and each individual reading great information on this site must make their own choices/decisions. Mistakes are made by all. Only the person making the mistakes can determine the severity and consequences of their individual mistake be that good or bad.

May the path YOU CHOOSE be the right one. Bottom line is YOU will be the one on that path and whether or not you wish to heed warnings of DANGER ahead is entirely up to You.

Thanks Jill and Robert. I AM listening.

Thanks, Robert. Personal experience is always helpful...of course it is always my decision in the end...info is good, facts are good, opinions are good...keep it coming everyone

Kate, PA does have an income tax.

Jill, Yes, Pennsylvania does have an income tax but they don't tax pensions or a 401(k).

Speaking of PA, a primary 55+ builders is Traditions with lovely communities in several PA locations. Is there anyone who moved from another state to a PA traditions community and are you pleased with your decision. (I.e. sense of community; activities, how hard to resell a 55+ home?) One of my biggest fears is to buy into a 55+ place, not like it and then be unable to sell it.

Carol -

I really like the Traditions models in Mechanicsburg and the one that is close to Cranberry Township (not as much in Lilitz and Sewickley), A saleswoman told me that a Traditions buyer typically adds about $100K in options to the base price. Everything is an extra, from the front door, countertops, cabinets, light fixtures, etc., but the prices for some of the options that I checked seems fair to me. I guess you don't really know the bottom line until you sit with them in a design center. I like the fact that Traditions seems to be happy to provide more customization than some other communities like Del Webb/Sun Cities. There aren't a large number of resales yet but I've noticed on Realtor.com that they do appear to be discounted from current builder pricing. I'd guess that the initial buyers' aren't breaking even if they sell when the builder is still in the development, which may be the case everywhere.

I'm waiting to see what happens with their HOA fees in the Tradition developments as they're finished. My retirement purchase is still about two years away. I've got it narrowed down to the Carolinas, PA (although the filial law issue is a big concern to me) and a few parts of Florida.

States with filial responsibility laws[edit]

According to Wikipedia (assuming they are correct), the following states have Filial responsibility laws:

Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia.

In addition, the Commonwealth of Puerto Rico also has filial responsibility laws.

Well, that list includes all four states i'm interested in. I guess i'd better be able to pay all my bills!

I'm a firm believer in making an appointment with an elder lawyer, to purchase an hour of time. For the cost of a single hour with an expert, you can cover a lot of ground and get a lot of information about the state where you choose to retire -- including whether the state has any filial responsibility laws, thresholds for estate taxes, whether you need a new will or must register your will in that state, what assets you're allowed to keep in that state under its Medicaid rules if you're married and your spouse eventually needs nursing home care, etc. (And yes, I am a lawyer although I don't practice in the area of elder law, estate law, etc. -- nothing that is going to help me figure out where to retire, and I know just enough to know that this stuff is complicated). The articles are helpful to flag possible issues, but I'd be uneasy about relying on them.

Good advice, Sharon. Thanks!

I'm pretty sure NC has paid off all their borrowing from the feds to pay unemployment during the 08 recession.

RE: Filial responsibility laws:..."Imagine this: One day you’re sifting through your mail. In the pile of letters, bills and junk mail, you find a letter from a law firm informing you that you need to pay $50,000 to cover the cost of your father’s recent nursing home stay, or the care facility will sue you." (per Forbes)...this actually happened to our sister in law for her Mother's care up in PA..My sister in law received this..she promptly contacted her Elder Attorney and case was dropped. Since the Nursing Home was a Medicad facility they had to accept the payments made by the State through the Federal Governments Welfare program. Since she was eligible for this program after exhusting her finances there was no case. Hope this helps..and yes, get an Elder Attorney.

Is it truly more expensive to live in NC than in the surrounding states? I keep hearing that NC is more expensive than TN, GA, and SW VA; however i never read any hard facts. Does anyone have data about WHY it's more expensive to live in NC? Many thanks to any and all who can assist me in answering this question.

Carol - moved into a 55+ community 1 1/2 years ago - home has been for sale over a year now. Not one contract offered! HOA fees (lot ren, water, sewaget etc) can be raised at the discretion of the owners unless otherwise stipulated in a legal contract, Caveat Emptor.

Robert, that is scary. Anymore stories from others?

I live in Sothern NJ. It realy is a great place to live, but! the high taxes and car insurance are terrible. Would have liked to retire to the Cambridge area on the Eastern Shore of Md. Then I read a list on Md being one of the worst places to retire. I once lived and own property on the Pan Handle of Fl. ( Port St Joe). It is to is a great place but quite far from family. I would like to here retirement comments about the Panama City, Mexico Beach and Port St. Joe Fl areas. Another area I would like to here retirement comments about is the Eastern Shore of Virginia. Thanks Sam69.

I noticed when I go to the beaches in south Delaware in Sussex County, there are a lot of people from higher taxed states like NJ, etc. In Rehoboth Beach there is a membership only film society where members go to obtain the culture that they miss from their home states. (Foreign films, opera, etc.) Tax free shopping at the Tangier Outlets and it is close enough to visit long time friends or have them come and visit. Still has snow in winter and heavy traffic during the summer from the tourists like me!