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The 5 Best (And Worst) States To Retire Rich

Here's where you can make your retirement dollars stretch further.

Who wouldn't want to live out their golden years in the lap of luxury? But many Americans wonder if they'll even be able to retire somewhat comfortably, which means getting the most out of your hard-earned retirement savings is key. 

GoBankingRates, a website dedicated to personal finance, analyzed the cost of retirement in all 50 U.S. states plus the District of Columbia. The rankings were based on key factors like cost of living, taxes, banking, the cost of health insurance and more. 

"While warmer places like Arizona tend to be popular destinations to retire, our study found that states located on the east coast in general offer retirees the most bang for their buck," Kristen Bonner, lead researcher on the study, said in a release. Bonner said many of the top ranked states had a few things in common, like lower home prices, lower health insurance premiums and higher Social Security benefits. 

Check out the best and worst five states to retire rich here and head over to GoBankingRates to see the complete rankings. 

The Best 

  • 1 Delaware
    This small eastern state takes the top spot thanks to no state sales taxes, low property taxes and low taxation on your Socia
    Getty Images/iStockphoto
    This small eastern state takes the top spot thanks to no state sales taxes, low property taxes and low taxation on your Social Security benefits. Win-win-win. 
  • 2 Michigan
    This midwestern state, known for its manufacturing businesses, offers a low cost of living. The average home price is under $
    shutterstock
    This midwestern state, known for its manufacturing businesses, offers a low cost of living. The average home price is under $200,000! 
  • 3 Indiana
    Like its northern neighbor, Indiana too boasts low housing costs. According to GoBankingRates, the Hoosier State has the lowe
    Flickr RF, Getty Images
    Like its northern neighbor, Indiana too boasts low housing costs. According to GoBankingRates, the Hoosier State has the lowest average housing cost of any state on the list! More money for your retirement splurge purchase.
  • 4 Maryland
    Nestled right next to the nation's capital, the state does have slightly higher housing prices but makes up for it with more
    Julie Thurston
    Nestled right next to the nation's capital, the state does have slightly higher housing prices but makes up for it with more affordable health insurance premiums and high average Social Security benefits.
  • 5 Florida
    Not to fear, there is a warm state rounding out the top five. There's clearly a reason that Florida is a hot retirement spot,
    � Gary John Norman
    Not to fear, there is a warm state rounding out the top five. There's clearly a reason that Florida is a hot retirement spot, and it's not just due to the weather. It offers more affordable health insurance premiums and high Medicare spending per capita.

The Worst

  • 1 Hawaii
    Though it's a vacationer's paradise, Hawaii isn't the best retirement option, according to GoBankingRates, due to the high co
    Getty Images/Flickr RF
    Though it's a vacationer's paradise, Hawaii isn't the best retirement option, according to GoBankingRates, due to the high cost of living. The average home cost is the highest on the list. Best save this destination for a sunny getaway.
  • 2 Vermont
    Vermont lands near the bottom of the list thanks to high taxes on both property and Social Security income. 
    Denis Jr. Tangney
    Vermont lands near the bottom of the list thanks to high taxes on both property and Social Security income. 
  • 3 North Dakota
    High Social Security taxes combined with poor banking rates put North Dakota in the bottom five. 
    shutterstock
    High Social Security taxes combined with poor banking rates put North Dakota in the bottom five. 
  • 4 Montana
    Though Montana boasts no state sales tax, banks here offer some of the lowest interest rates on savings and CD accounts, maki
    Mark Miller Photos via Getty Images
    Though Montana boasts no state sales tax, banks here offer some of the lowest interest rates on savings and CD accounts, making it hard to grow your savings.
  • 5 New Mexico
    Retirees in New Mexico have low Social Security benefits on average and Medicare spending per capita is low as well. 
    Getty Images
    Retirees in New Mexico have low Social Security benefits on average and Medicare spending per capita is low as well. 

 

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