Is Hawaii Really the Worst State to Retire In?

Hawaii is a popular vacation destination, and it’s not difficult to see why. If you enjoy warm weather and relaxing on beautiful beaches, you’ll have a hard time finding a better spot. But like any state, Hawaii has its drawbacks.

It just so happens that these drawbacks make it a pretty unfavorable choice for retirees, at least according to The Motley Fool’s research on the best states to retire in. And when you look beyond the beautiful scenery, the picture gets more complicated fast.

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Hawaii is an island, which means many essentials of modern life have to be shipped in from the mainland or overseas. This makes the cost of goods higher in Hawaii than in much of the rest of the country. Housing is also very expensive here. That alone puts it beyond the reach of many retirees who are struggling to make ends meet.

The state isn’t especially tax-friendly for seniors, either. While it doesn’t tax Social Security benefits, its income tax rate is one of the highest in the nation for people of all income levels. This, combined with the high cost of living, can give some retirees sticker shock.

That’s not to say it’s impossible to retire comfortably in Hawaii. Many people do. But it’s important to understand what you’re getting yourself into first. Before going ahead with that plan, make sure you compare the average cost of living in your area with Hawaii’s so you can understand how your expenses might change after you move.