Key Points
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Hawaii was ranked the worst state to retire in, according to The Motley Fool’s research.
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This is largely due to the increased cost of goods because of the state’s remote location.
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A high income tax rate adds to the expenses that retirees in the Aloha State face.
Hawaii is a popular vacation destination, and it’s not difficult to see why. If you enjoy warm weather and relaxing on beautiful beaches, you’ll have a hard time finding a better spot. But like any state, Hawaii has its drawbacks.
It just so happens that these drawbacks make it a pretty unfavorable choice for retirees, at least according to The Motley Fool’s research on the best states to retire in. And when you look beyond the beautiful scenery, the picture gets more complicated fast.
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Hawaii is an island, which means many essentials of modern life have to be shipped in from the mainland or overseas. This makes the cost of goods higher in Hawaii than in much of the rest of the country. Housing is also very expensive here. That alone puts it beyond the reach of many retirees who are struggling to make ends meet.
The state isn’t especially tax-friendly for seniors, either. While it doesn’t tax Social Security benefits, its income tax rate is one of the highest in the nation for people of all income levels. This, combined with the high cost of living, can give some retirees sticker shock.
That’s not to say it’s impossible to retire comfortably in Hawaii. Many people do. But it’s important to understand what you’re getting yourself into first. Before going ahead with that plan, make sure you compare the average cost of living in your area with Hawaii’s so you can understand how your expenses might change after you move.
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I retired in Hawaii. I’m pretty confortable!
some rules:
1) Retire only in Rural Hawaii. I’m on the Northeast side of the Big island.
2) Pay cash for your home and property, no mortgage!
Only a fool retires and has to still pay a mortgage or rent.
3) Helps to be a VET for medical, no VA hospitals(BI) here so,
so you go to civilian Medical facilities. VA pays most if not all of it.
This only works for the 6% of the population that went into the military.
4) Family of two can live very well on social security and retirement
adding up to a very low 6 figure income. following my first three rules.
5) There is much, much more to Hawaii than artificial white sand beaches
and very over priced hotels. Most people get “Rock fever” and leave because they
can’t adapt to the isolation and life style that isolation requires.
6) Been here 26 years, I hate going back to the mainland.
Aloha!