People have a lot to contemplate when preparing for retirement.  One, of course, is financial planning.  The old saying, "If you fail to plan, you plan to fail" is never more appropriate than in your retirement years.  If you wait until you in your 40s, time is of the essence to get something done quickly about retirement.  By most accounts, waiting until after you are 40 is usually too late to plan for retirement.  As stated, there are many aspects to retirement.  Medical issues, hobbies and traveling are three that come to mind.  However, this is another that comes to the forefront;  where are you going to live?  Most retirees will live in the home they have usually paid off by the time they retire.  Still others decide they want to live somewhere else, away from children and start anew in a new locale.  But, here in the United States, there are states that retirees might want to avoid before moving there.  Of course, most people think of Florida when they want to retire. It is considered by most as the best state to retire.  Overall, the tax benefits of living in Florida fuel tax, property tax and sales tax makes it a dream location in addition to the beaches and the entertainment value for retirees.  But, there are states that are a nightmare for retirees.  Tax-wise, entertainment, medical facilities are on a scale so bad that one would have to consider the sanity of a retiree going there for their retirement years.  Topretirements.com has a top ten list of states that are the worst for retirees.  We will look at three of those states, staring with #3 on the list.

#3 - Wisconsin. - American's Dairyland is well-known for its scenic farmland and the best cheese in the world.  You might want to live there, you might want to work there.  But, you don't want to retire there. They have the 4th highest property taxes in the US.  Retirement income is taxable. Relatively high marginal income tax rate of 7.75 in the highest bracket (over $225,000).  So, if you think that tax bracket won't break you, then head to Wisconsin.  Oh, it gets really, really cold there also.

#2 - Illinois - The land of Abraham Lincoln, The Prairie State is known for Black-eyed Susans, and purple corn flowers.  It's also known as the home state (at least in the lower 48) of President Obama.  To quote Forrest Gump, "And that's all I have to say about that."  Unfortunately, Illinois is also known for having the second highest property taxes. Has an estate tax and the 5th highest gas tax.  That is not conducive for retirement living by any definition.

#1 - New Jersey - The Garden State is not really geared toward the retiree.  I think Tony Soprano, notwithstanding, this state is well-known for its affiliation with the criminal element of society.  Retirees don't want to wake up to news about gangland killings and the like.  That is not nearly as prevalent as it was in the 80s, of course.  But, this is not a choice state to consider retirement.  Other reasons are the highest property taxes in the nation. Taxes on pensions. Highest estate taxes in the nation with an exclusion beginning at $675,000. One of the highest marginal tax rates at 8.97% on incomes over $500,000. One of the highest cost of living (46 out of 51).  Like I said, New Jersey is not geared to attract the retiree.  You can go to other casinos beside those in Atlantic City. 

There are seven other states to avoid.  You can look at those at your leisure with the link above.  Realistically, none of the top 3 states are places where most retirees would consider anyway. 

Note:  Those of you who are truly interested in all aspects of retirement, you can visit my new retirement blog HERE.