- Tom Silva
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Illinois Ranks Dead Last in List of Retirement Paradises
Illinois ranks as the nation’s worst state to retire in, according to a study by TopRetirement.com. The nine other losers include California, New York, Rhode Island, New Jersey, Ohio, Wisconsin, Massachusetts, Connecticut and Nevada. John Brady, TopRetirement.com’s president, says the 10 states belong on this list because of their fiscal health (poor), taxation (high) and climate (the majority have cold, snowy winters). The Pew Center for States has described six of the 10 as being in “fiscal peril”. These states include Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island, Wisconsin and California.
Illinois’ position at the bottom of the list is due to the state’s grim fiscal health, which Brady describes as possibly the worst of any state. The report, entitled “Beyond California: States in Fiscal Peril”, demonstrates that “some of the same pressures that have pushed California toward economic disaster are wreaking havoc in a number of other states, with potentially damaging consequences for the entire county.” Regarding Illinois, Brady notes that “It even borrowed money to fund its pension obligations.” In terms of California, Brady notes that although it has an enviable climate, the cost of living is expensive and the state’s finances are a shambles – even paying some bills with vouchers. Although New York state’s finances are in fairly good condition, it has the nation’s second-highest tax burden and the fifth-highest property taxes, as well as a “dysfunctional state legislature.”
One surprising finding was that – despite its affordable housing prices, due in part to a high number of foreclosures – Nevada was deemed the 10th worst state for retirement. As the nation’s home foreclosure capital, Nevada in 2010 saw one in every 79 homes in foreclosure, according to RealtyTrac. Although Brady admits that the state has some financial problems, the positive news for retirees is that Nevada does not have a state income tax.
“Every individual has to consider his or her own criteria for selecting a list of the worst or best states to retire,” Brady concluded.