However, it has the worst crime rate nationwide, with a crime score of 0, ranking 50 out of 50 states. New Mexico also nabbed the second-lowest quality-of-life score. The state's healthcare score was 42, while New Mexico scored 50 out of 100 for taxes.
According to FBI data, New Mexico has one of the highest rates of violent crime against older adults in the nation. On average, violent crimes against seniors in the state occur at a rate of 212.2 per 100,000 individuals.
2. California
Retirees who spend their golden years in California could enjoy many benefits like stunning natural scenery, a mild climate year-round, diverse cultural experiences, ample outdoor activities, and participating in the world's fifth largest economy.
It's no shock to anyone that California is one of the most expensive places to retire. In The Motley Fool's study, California was ranked 49th out of 50 states to live, the second worst state to retire in overall.
California taxes pensions, although it does not tax Social Security benefits. The state is also known for having some of the highest personal income tax and sales tax rates in the country.
California has the second-highest cost of housing, third-highest cost of living, and fifth-highest tax burden of all 50 states. The state garnered an overall score of 16 out of 100 in the study.
On the other hand, factors where California received the highest scores included quality of life (84 out of 100), crime (71 out of 100), and weather (63 out of 100).
3. New York
If you're looking for major tax savings in retirement, you may want to cross New York off your list. New York doesn't tax Social Security benefits, but property taxes, income taxes, and sales taxes are among the steepest in the nation. However, people 65 and older may qualify for property tax exemptions, provided that they meet certain criteria.
In The Motley Fool's study, New York garnered the worst tax score in the country, scoring 0 out of 100. The exorbitant cost of housing in New York, even outside urban areas, could also deter retirees with a more modest sum for their older years.
However, it wasn't all bad news for New York. For example, The Empire State snagged the fifth-best quality-of-life score at 92 out of 100.
4. Arkansas
Arkansas has numerous green flags going for it, including beautiful natural attractions like rivers, mountains, forests, and hot springs. The state is also one of the most affordable places to reside in and be a homeowner, garnering a housing score of 94 out of 100 in The Motley Fool's study of the best and worst states to live in.
However, Arkansas still made it to the list of the top five worst states to retire in. The state received low scores for quality of life, public health, and crime, resulting in an overall score of 18 out of 100.
Broken down by the scoring factors, Arkansas received a 12 for quality of life, 18 for healthcare, and 25 for crime.
The state exempts Social Security benefits from taxation, but other forms of retirement income are taxable. Certain exemptions for pension or retirement account income can reduce that overall tax burden.
5. Nevada
Nevada is the fifth worst state to retire in, according to The Motley Fool. Nevada achieved moderate scores for quality of life (52 out of 100), cost of housing (60 out of 100), taxes (56 out of 100), and weather (47 out of 100).
However, it scored lowest in terms of public health and crime factors. These scores were 32 and 24, respectively. In the end, Nevada received an overall score of 19 out of 100.
Nevada is also one of the worst states for fraud and violent crime against older adults. The state has 240.8 victims of fraud per 100,000 older adults and 1,676.4 victims of property crime per 100,000 older adults.
Nevada doesn't have a state income tax. Neither retirement benefits nor Social Security benefits are taxable in Nevada.
