Ideally, retirement planning is something everyone should start shortly after they enter the workforce to ensure that they will have the financial resources to live comfortably during their retirement years. If you are getting close to your retirement years at this point, you will need to make some fairly important decisions relating to your retirement plans. At the top of that list is deciding where to retire. Some people have their bags packed and the movers on standby months before their retirement date while others adamantly refuse to relocate when they retire. If you are considering relocation when you reach retirement age, you may find the results of a recent study ranking the states with regard to their desirability as a retirement destination.
Retirement Planning – Why It Is So Important in the 21st Century
There was a time, not all that long ago, when the average workers didn’t need to put much thought into retirement planning. Companies routinely offered pensions that would provide sufficient income to cover the necessities during a worker’s retirement years. That pension, coupled with Social Security retirement benefits was enough to live comfortably during a retiree’s “Golden Years.” Pensions, however, are all but a thing of the past, due in large part to that fact that lifetime employment is also all but a thing of the past. Employers are no longer willing to offer pensions to workers who feel no loyalty to the employer. Moreover, the average Social Security retirement benefit has hardly kept up with inflation, meaning a worker cannot count on an S.S. check to cover even the basics. Consequently, the need to plan for your own retirement has increased dramatically. Part of that planning includes deciding where you will live after you retire. Whether you are planning to remain in Illinois after you retire or you are considering a relocation to another state, you may find the results of a recent study by Wallet Hub to be helpful.
The Best and the Worst States for Retirees
Several factors go into deciding where you want to live when you retire. Unless you have unlimited financial resources, the cost of living is certainly one of those factors. Wallet Hub recently published the results of a study that compared the 50 states across 41 key indicators of retirement-friendliness. Their analysis examined affordability, health-related factors, and overall quality of life. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for retirement. Each state received an overall score and ranking for each of the three broad categories – affordability, health care, and quality of life. The overall “winner” was – not surprisingly – the State of Florida with a combined score of 66.79 followed closely by Colorado with 66.17 and then South Dakota with 65.89 points. Interestingly, both the second and third place “winners” are states that are not known for having neither warm nor dry climates. At the very bottom of the rankings, in last place, was Kentucky with 43.06 points with New Jersey and Rhode Island rounding out the bottom three.
Illinois came in at number 31 with a combined score of 54.45. The state did well in the “quality of life” category, coming in at number 13; however, Illinois ranked 40th and 32nd in the “affordability” and “health care” categories respectively. The poor affordability ranking was further indicated in the “taxpayer” sub-category ranking where Illinois placed 50th, making the state the worst state for taxpayers. On a more positive note, Illinois ranked 3rd in the sub-category of “most theaters per capita,” a clear indication of the culture and entertainment options available to Illinois residents.
Whether you ultimately decide to remain in Illinois to be near friends and family or you choose to relocate to the sunny shores of Florida, the important thing is to take the time necessary to consider how your choice of retirement location will impact your overall retirement plan.
Contact Illinois Retirement Planning Lawyers
Please join us for a FREE estate planning seminar. If you have questions or concerns regarding retirement planning and how it interacts with your overall estate plan, contact the experienced retirement and estate planning lawyers at Hedeker Law, Ltd. by calling (847) 913-5415 to schedule an appointment.