There are a number of pros to retirement in New York. A number of cities in the Empire State feature plenty of culture, gorgeous scenery, and a chance to escape the fast life.
However, the state has been earning a reputation in recent years as one that makes life difficult on its retirees. Here are four of the drawbacks to retiring in the state of New York.
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1. High Cost of Living
Unfortunately, the cost of living in New York State is 26 percent higher than the national average, says to Kay Conheady, a financial planner at Apropos Financial Planning. The Hamptons, a popular retirement destination for years, has one of the higher costs of living in New York with the median cost of a home totaling more than $1.1 million.
Marketwatch indicates that “the cost of living is 167 percent higher [in the Hamptons] than average.”
2. High Taxes
From 2004 to 2011 the state lost billions of dollars (20.5 to be exact) due to retirees moving out of the state and to places like Florida, where the taxes are much more reasonable (in fact, Florida does not have a state income tax).
While there are a number of tax exemptions for seniors, overcoming the tax rates on income is a challenge for retirees.
According to Kiplinger, the “tax rates on non-retirement income can be punitive.” The state income tax ranges anywhere from 4.0 percent to 8.82 percent. Meanwhile, the capital gains tax is the second highest in the nation at 31.5 percent.
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3. Health Care
CBS New York reports in a 2014 survey from Bankrate, the state of New York ranked last in terms of places to retire. A key reason for this distinction was the “relatively low government scores for healthcare quality and wellness.”
New York currently holds an overall rank of 21st in the nation for
seniors on America's Health Rankings. That’s not terrible, but there’s plenty of room for improvement. In addition, the state is challenged by a high number of seniors living in poverty and a high percentage of hospital deaths.
4. Difficulties for Veterans
The state is also hard on its veterans.
WalletHub ranks the 51 states (including the District of Columbia) in terms of their “economic environment,” “quality of life,” and “health care” for veterans. New York ranked 51st, 45th and 15th respectively. The state also ranked 47th for “Least Veteran Owned Businesses” and 47th in the overall rankings.
Fortunately, New York does offer a great deal by way of culture, amenities, and setting. It’s up to individuals to determine whether those pros are enough to outweigh the cons and make the Empire State a practical retirement destination.
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