Forex Articles

Living expenses are just one of the big costs people are going to face in retirement. There are also taxes and healthcare, not to mention amenities and access to them, all of which means you have to be choosy when deciding where to set down retirement roots. It's particularly important for future retirees, as surveys show that more than half want to relocate once they exit the workforce. (For more, see How to Be Realistic About Relocating for Retirement.)

Family and friends will obviously be a factor in where you choose to retire, but from a pure financial and quality-of-life perspective there are some states that are going to fare better than others – and it's not where you may think. Here's a look at the best and worst places to retire to based on Bankrate.com's latest ranking, which looks at five factors: cost of living, quality of healthcare, taxes, crime and overall well-being.

Many people think of Florida when they mull relocating in retirement. After all, it has warm weather pretty much all year and a lot of retirees with whom to interact. However, it turns out that Florida doesn't hold the mantle as the top place for retirement; indeed, it didn't even make it into the top 10 of Bankrate's ranking. Wyoming held the top spot for the second year in a row, thanks to its low taxes and low crime rate, which scored well below the national average. Residents of the state also landed in the top five in the Gallup-Healthways Well-Being Index. You may not get super-hot weather in Wyoming, but it is pleasant enough, without the humidity for which Florida is known. (For more, see Your Retirement Lifestyle.)

You may endure cold winters in South Dakota, but you won't pay a lot in taxes, which may keep you warm at night. In addition to having one of the lowest tax burdens in the country – tied with Wyoming and second only to Alaska – residents of South Dakota may be chilled, but they are also happy and have a strong sense of social well-being, according to Bankrate.com.

Coloradans face a slightly higher tax burden than their counterparts in Wyoming and South Dakota, but what makes this state rank No.3 for retirees is its weather and the activities available to residents and visitors. Colorado enjoys a lot of sunshine but doesn't have much humidity, making it appealing to retirees. There are also a lot of activities – such as golfing, skiing and museum hopping – not to mention plenty of spots from which to take in the state's breathtaking scenery.

For retirees looking for easy access to culture, diversity, shopping, dining and Broadway, New York City and its surrounding suburbs have much to offer. However, it comes at a price, apparently one that is so high that the state ranked as the worst place to retire to in the U.S. Manhattan, for example, has the highest cost of living, with the average apartment costing four times the national average. And that doesn't even take into account the taxes in New York. It has the biggest state and local tax burden in the country. (For more, see Finding a Retirement-Friendly State.)

West Virginia may have a low cost of living and a lot of outdoor activities to keep you busy, but it also doesn't fare well in well-being and healthcare, which resulted in it being bestowed the title of the second worst place to retire to, according to Bankrate. In the Gallup-Healthways Well-Being Index, West Virginia came in last in four out of five of the categories.

Where you decide to retire is going to be unique to your current financial situation and your idea of what you want out of retirement. But if you are looking for a cheap place to live out your golden years, with lots of activities and great weather, retirees have a lot of places from which to choose.