Despite having a city so nice they named it twice, New York has been named the second-worst state for retirees by Bankrate’s most recent Best States to Retire Study. While the Empire State has the cultural and financial capital of New York City, its overall lack of affordability powered the state to the 49th position in Bankrate’s rankings, ahead of only Alaska.
New York ranked 49th in Bankrate’s affordability category — ahead of only California — leading to the state’s dismal 49th place showing in the study. Affordability counted 40 percent toward a state’s overall retirement score. New York landed in the bottom half in three other categories, including weather, crime and health care. Its lone standout performance came in the well-being category, which includes factors such as diversity and number of entertainment establishments.
New York’s positives, such as high-wage jobs, may be a boon for employment-age Americans, but affordability is a top concern for many retirees, who struggle with income issues.
Even if money is not a particular concern, retirees may find states that rank better on a combination of amenities that also matter to them. For example, 2024’s top state for retirement — Delaware — offers good affordability and a solid mix of other positives, too.
Why did New York rank so low for retirement?
New York ranked 49th overall in Bankrate’s annual study of the best states for retirement, which was based on the following factors and weightings:
- Affordability (40 percent): New York ranked 49th. This factor includes property taxes, state and local sales tax, homeowner’s insurance premiums and cost-of-living index.
- Well-being (25 percent): New York ranked fourth. This factor includes the number of adults aged 62 and older per 100,000 residents, community well-being index, diversity index by state, and arts, entertainment and recreation establishments per 100,000 residents.
- Quality/cost of health care (20 percent): New York ranked 32nd. This factor includes the cost of health care per capita, health care establishments per 100,000 residents and state health system performance.
- Weather (10 percent): New York ranked 37th. This factor includes the frequency of natural disasters and historic average temperature.
- Crime (5 percent): New York ranked 33rd. This factor includes violent and property crime rates per 100,000 residents.
The heavy emphasis on affordability means high-cost states such as New York, California and Washington often rank poorly in Bankrate retirement studies.
Best and worst states to retire 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 is the second-worst state for affordability
New York finished 49th overall in affordability, and it ranked near the bottom in each of the four subcategories comprising the affordability score.
The most heavily weighted subcategory is a state’s rank in the cost-of-living index, which accounts for 25 percent of the overall affordability rating (of 40 percent). New York scored a lackluster 45th place, which bested California, Massachusetts and Hawaii, among others.
The state did similarly poorly in the subcategories of property taxes and state and local taxes, where it ranked 48th and 41st, respectively. The average annual tax on an average-value home in New York came to $7,936, according to 2023 data from ATTOM Data Solutions.
Even when it came to home insurance, New York ranked only in the middle of the pack at 24th. The average annual premium was $1,690 as of June 2024, according to Bankrate research.
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New York ranked in the bottom half for crime
The Empire State did not fare too well in the crime category, ranking at 33rd overall. This category had the least impact in the overall rankings (5 percent), so it was not a huge factor in the total score.
The crime component had two subcategories — violent crime and property crime. Here’s how New York ranked in each:
- Violent crime: In 2022, New York had 429.3 violent crimes per 100,000 residents.
- Property crime: In 2022, New York had 1,721.6 property crimes per 100,000 residents.
New York weather also a notable negative
New York was also dinged in the rankings for its weather, and the state is well known for its cold New England winters, as well as legendary lake-effect snow upstate. This category counted for 10 percent of the overall ranking, and New York landed in 37th place here.
The average temperature in New York from 2000 to 2023 was 46.4 degrees Fahrenheit, according to Bankrate’s analysis of National Oceanic and Atmospheric Administration (NOAA) data.
With not too many tornadoes, earthquakes or hurricanes, New York scored in the top half in the natural disaster subcategory.
Health care also scored weakly
New York also had a poor showing in the quality and cost of health care, ranking 32nd here. With a weighting of 20 percent, the lackluster performance didn’t do much for the overall ranking. The subcategories include health care cost per capita, health care establishments per 100,000 residents and state health system performance.
When it comes to health care cost per capita, New York came in 50th place, spending an average of $14,007 in 2020, according to the Kaiser Foundation. For context, only two other states spent more than $13,000 (Alaska and Massachusetts), while Utah spent the least, at $7,522.
New York reached the top half of the rankings when it comes to health care facilities per capita, coming in 19th. The state has about 304 facilities per 100,000 residents. Alaska led the rankings with 387 facilities for every 100,000 residents, while Alabama came in 50th, with 221.
The last subcategory, state health system performance, shows how the state’s health system is functioning. New York landed in the ninth spot, with Massachusetts at the top and Mississippi at the bottom.
Notable positive for New York: Strong well-being
New York’s best score in a category came in the well-being area, and it was not only its best category but also an outstanding performer, ranking fourth. Well-being made up 25 percent of the overall score, and the rank was based on the number of adults aged 62 and older per 100,000 residents, the community well-being index, the demographic diversity index, and arts, entertainment and recreation establishments per 100,000 residents.
New York finished in the middle when it comes to the number of adults 62 and older per capita. Out of every 100,000 people, 22,090 of them are 62 and above. Maine led this list, with about 27.3 percent of its population at or above 62 years old.
New York’s score for arts, entertainment and recreation establishments per capita was also expectedly strong and lived up to its reputation as a cultural capital. The state came in seventh in this subcategory.
In terms of racial and ethnic diversity, New York also ranked highly, coming in sixth here.
New York was also a leader in the community well-being index, ranking fifth, as measured by ShareCare in 2022. Hawaii and Massachusetts tied for the top spot, while Mississippi was at the bottom.
How much house can I afford in New York?
Despite some notable positives in the well-being category, New York’s performance in the Bankrate survey had a lot to do with the heavily weighted category of affordability. If the state is a contender for your retirement home, carefully consider whether it meets your budget. While New York is unquestionably a global leader in culture, the key question for retirees is more likely whether they can afford it — especially with high homeownership costs — rather than whether it’s a place they’d actually want to live.
Figuring out your budget for a new home is one of the first steps if you’re thinking about a move there. This Bankrate calculator can help you determine what amount you can spend on your home.
Working with an experienced financial advisor can also help you make your retirement dreams affordable, even if they include residing in a state with a high cost of living.
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