BOSTON–Forget Florida. The best state for retirees is Nebraska, at least when it comes to finances, according to a new report.
LPL Financial said it performed a review of each U.S. state as a retirement destination using its Retirement Environment Index, which uses a combination of public data related to health, finance, housing, employment, education, community and quality of life indicators, in order to evaluate and rank states based on their attractiveness to retirees. The index is weighted to prioritize finances over other indicators.
The result: The Cornhusker State finished atop the Index thanks to financial stability and improved quality of life indicators.
LPL Financial also graded for each state based on their index score. Only 10% of states received an “A” grade and 40% of states were given a “C” in the LPL Financial measurement. According to LPL, Michigan saw the biggest improvement since 2015, “within the financial category, median income improved greater than the national average, cost of living declined, and the tax burden fell compared to an average increase in the tax burden across all states.”
The Midwest in general is seen as one of the most desirable places for retirement. With financial indicators in line with national averages and below average housing costs, states in the region averaged around the 15th ranking, LPL said.
Classic retirement destinations such as Florida (29), the Carolinas (North Carolina 21, South Carolina 38) and Arizona (40) didn’t fare as well.
According to the Retirement Index, Washington, D.C. and Kentucky declined the most. Poor lifestyle choices related to overall wellness and health contributed to Kentucky dropping 16 positions between 2015 and 2017, LPL said. D.C.’s drop was driven primarily by an increase in cost of living and low scores in community and quality of life indicators. New York has consistently ranked the least attractive destination because of high costs. It briefly rose above the 51st ranking in last year’s report, but due to a drop in its overall healthcare score, it fell back to last place.