Study: R.I. not the place to retire rich

RHODE ISLAND IS among the 10 worst states to retire rich, according to GOBankingRates. / COURTESY GOBANKINGRATES
RHODE ISLAND IS among the 10 worst states to retire rich, according to GOBankingRates. / COURTESY GOBANKINGRATES

PROVIDENCE – Rhode Island is not the place to retire if you are rich.

According to a new GOBankingRates study, Americans who want to retire rich should think about moving to New Hampshire and avoid New York.

The Ocean State was the seventh-worst state to retire rich, according to GOBankingRates, which identified the best and worst states to preserve wealth as a retiree. Taxes, living expenses and health care costs all were considered in the rankings, among other factors including home values and insurance premiums.

The study said Rhode Island residents pay taxes on estates and “run into fairly expensive property tax rates.” The state was praised for having its seniors being among the healthiest in the country – seventh out of all the states. But cost of living and average home price were mentioned as negatives.

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“Retirees will have a hard time maintaining their wealth when they’re being nickel-and-dimed by taxes and the high costs of living in this state,” GoBankingRates said.

However, the recently approved fiscal 2016 budget increases the earned income tax credit by 25 percent, and also exempts from state income tax Social Security benefits for single filers with federal adjusted gross income of up to $80,000 and for joint filers of up to $100,000.

New Hampshire ranked high for its lack of sales, estate, inheritance or Social Security income taxes.
The rest of the top 10? Delaware, Idaho, Wisconsin, Wyoming, Alaska, South Dakota, Michigan, Utah and Arkansas.
After New York, the worst states to retire rich are: New Jersey, Illinois, Connecticut, California, Vermont, Rhode Island, Massachusetts, Washington and Nebraska. New York, Massachusetts and New Jersey made the worst states list for the high costs of their health insurance premiums.

“Retirees depend largely on savings for income, so financial considerations should carry the most weight when deciding where to live in retirement,” GOBankingRates Editor-in-Chief Casey Bond said in a statement. “Long-term happiness is directly related to quality of life; it’s difficult to live happily in retirement when you can’t afford quality healthcare and high taxes.”

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