Illinois named 7th worst state for retirement by WalletHub

[February 04, 2023]  By Zeta Cross | The Center Square contributor

(The Center Square) – Retirees are better off in North Dakota and Nebraska than in Illinois, according to a new analysis from WalletHub. Illinois came in seventh from last compared to other states, according to the ranking.

The study measured a state’s affordability, quality of life and health care. WalletHub analyst Jill Gonzalez said Illinois wound up in the bottom 10 of the 50 states because of how its economy is made up.

Illinois ranked 44th overall.

“Illinois is much less affordable than the other Midwest states,” Gonzalez told The Center Square. “In general, it costs more to retire in Illinois than it does in most other states in the country.”

Despite Illinois not taxing retirement income, general tax policy and lack of taxpayer friendliness were the main factors in Illinois' low ranking, Gonzalez said.

“Taxes are a huge part of why Illinois loses out to other states like Minnesota, North and South Dakota and Nebraska,” she said. “Special tax breaks for seniors and tax policy for retirement income just aren't there in Illinois.”

High sales taxes, high property taxes and high inheritance taxes are among the main reasons why Illinois came in 47th for affordability, she said.

Alabama, Tennessee, Arkansas, South Carolina, Georgia, Wyoming and Delaware all made the top 10 of WalletHub’s list with Florida squeezing in at number nine.

As far as good quality of life for retirees, Illinois climbs back up to the top half of states, Gonzalez said. Illinois ranked 22nd out of 50 states for quality of life in retirement.

Minnesota, Massachusetts, Florida and Pennsylvania all beat out Illinois for high quality of life in retirement, WalletHub found.

Looking at adjusted cost of living for retirees, Illinois ranked in the middle of the 50 states. The most expensive states for retirees are Alaska, New York, California and Massachusetts, with Hawaii taking the number one spot, the study said.

When states are ranked for access to health care, Illinois drops back down to 27th place, Gonzalez said. When states are compared for the number of family medicine practitioners per capita, and access to health care, Illinois comes up short, Gonzalez said. Illinois has top ranked health-care providers, but many residents do not have access to them, the study found.

The overall best states for retirement are Virginia ranked number one, followed by Florida at number two, and Colorado at number three.

WalletHub named Kentucky as the worst state, largely because of its problems with health-care access and affordability, Gonzalez said. New Jersey was named the second worst state for retirement, right behind Mississippi.