News Summary
Arizona has been ranked 31st in Bankrate’s best states for retirement, highlighting concerns about affordability and healthcare access. The state falls short in critical areas such as healthcare and neighborhood safety, affecting its appeal to retirees. With rising housing costs and ongoing trends favoring more affordable states, policymakers are urged to address these challenges to maintain Arizona’s attractiveness as a retirement destination.
Phoenix, Arizona – Arizona has earned a ranking of 31st on Bankrate’s recent list of best states for retirement, reflecting various concerns about affordability and healthcare access for retirees in the state. The comprehensive evaluation considered eight different categories, where Arizona notably fell short in areas critical for future retirees.
In particular, Arizona ranked 33rd in healthcare, 32nd in neighborhood safety, and also 33rd for arts and entertainment. The state performed poorly in the miscellaneous category, which includes factors like walkability and air pollution, coming in at an alarming 48th place. Affordability stands out as a significant worry for Arizona retirees; the state is rated 37th in terms of affordability, largely due to an above-average cost-of-living index.
The data reveals troubling trends in housing costs, with home insurance premiums rising over 70% from 2019 to 2024, positioning Arizona as the fourth highest increase in the nation. This surge in housing costs could deter many potential retirees from making Arizona their retirement destination. Individual experiences can vary widely based on geographic location within the state, as urban settings may present different advantages compared to rural areas.
Despite these drawbacks, Arizona still showcases some appealing features for retirees. It ranks 4th for weather conditions, 13th for the number of similarly aged individuals residing in the state, and 15th concerning local taxes. These factors could make Arizona an attractive option for retirees who prioritize sunshine and a community of peers in their golden years.
The national landscape sees New Hampshire boasting the top rank for best retirement states, while Louisiana sits at the bottom of the list. A notable consideration for retirees aged 50 and above is access to healthcare, which is a primary concern for over 70% of this demographic. Larger cities within Arizona, such as Phoenix and Tucson, provide greater access to numerous medical facilities which can ease concerns about aging-related health issues.
Arizona offers a low average property tax rate at just 0.44%, making homeownership seem particularly appealing for retirees. Additionally, Social Security is exempt from state income tax, and retirees can benefit from various tax breaks on certain pensions. The absence of an estate or inheritance tax further allows retirees the peace of mind that their legacy will be preserved for their families.
The state’s diverse climate could also cater to retirees’ preferences, with hotter desert conditions prevailing in the southern regions and cooler temperatures in the north. However, summer temperatures often surpass 100°F, which can lead to increased energy costs during the peak months. Furthermore, retirees should remain aware of risks associated with wildfires, extreme heat, and monsoon seasons, which may require them to obtain specialized insurance coverage.
To support its aging population, Arizona has established senior health services and support programs that assist older adults in remaining within their homes longer. However, there is a growing trend among seniors to opt for more affordable retirement states like Arkansas and Missouri, instead of Arizona, Florida, or California, that have traditionally been regarded as retirement havens.
Notably, Peoria has emerged as a rapidly growing retirement destination, alongside other cities in the Valley such as Chandler and Mesa. The rising costs of housing and insurance in Arizona pose potential barriers for retirees considering a move, prompting policymakers to look for solutions to sustain the state’s viability as a retirement option.
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Additional Resources
- Investopedia: Retirement in Arizona
- USA Today: Most Popular Retirement States
- AZ Central: Arizona Falls Off Hotspots for Retirees
- Travel + Leisure: Scottsdale Named Best Place to Retire
- FinanceBuzz: Arizona Cities to Retire
