Michigan is considered the least expensive state to retire in 2022, according to a recent Bankrate analysis. This is due to the low cost of living and the low tax burden on residents.
To compile an overall list of the best states to retire from, Bankrate ranked the states into five categories. health and wellness; culture and diversity; weather; and crime.
To calculate affordability, Bankrate analyzed the July 2022 Cost of Living Index from the Council for Community and Economic Research and property..
and sales tax rates from the Tax Foundation's 2022 rankings.
Despite ranking top for affordability, Michigan does not do well in other categories.
It ranked 30th in Health and Wellness, Culture and Diversity, and Weather, and 29th in Crime.
Florida is also known for its good tax incentives for retirees, but it ranks 18th for affordability as the cost of living in the state rises, Bankrate reports.
Ask yourself questions such as, "how will your income be taxed?" says Clark Kendall, president of Kendall Capital Management in Rockville.
You should consider what activities you would like to do after retirement and where you will be able to do so.