Study: Washington ranks as one of the worst states for retirees

Neetish Basnet
By Neetish Basnet – Data reporter, Puget Sound Business Journal

Retirement in the Evergreen State is a tough sell to a briskly aging population, according to a new study by Bankrate that ranked Washington as the fourth-worst state to retire.

Affordability, crime and weather drew down Washington’s feasibility as a retiree haven. The state dropped seven spots from the same study last year.

Bankrate analyzed living expenses, property tax rates and the cost of homeowner’s insurance in every state to calculate affordability, which accounted for 40% of the ranking index. Washington was the fourth-least affordable state in the country.

An average resident aged 65 years and older earns $58,752 in annual income in Washington. Their younger working-age counterparts earn almost double in annual income, according to U.S. Census data.

The lower income may not worry retirees as much, though. Accumulated wealth and net worth of individuals in their golden years are significantly higher, data from the Federal Reserve’s most recent consumer finances survey shows.

Most lifestyle decisions would depend on the total funds available for retirement. Bankrate noted retirees who have equity built up could trade the higher cost of living in coastal Western and northeastern states for a move inland where they can “stretch their retirement income.”

Accompanying Washington (47) at the bottom of the ranking were Alaska (50), New York (49), California (48) and Massachusetts (46).

Other key metrics Bankrate used to compile its ranking were crime data from the FBI, weather data from the National Oceanic and Atmospheric Administration as well as well-being and health care quality and cost.

Washington stood out the most — beating all other states besides Colorado — on health care. Washington residents’ spending on private and public health care services is one of the lowest in the nation.