Many Americans have some doubts about whether they will be able to comfortably afford to retire. More than half of people surveyed recently by WalletHub said they think it's unrealistic to expect the average American to retire comfortably, citing heavy debt burdens, inadequate savings, and uncertainty surrounding government benefits.
Approximately 40% reported feeling anxious when thinking about retirement, and about 25% stated they don’t have a retirement plan. About 43% of those surveyed said they expect to work until they die, according to WalletHub.
The survey revealed that more than half of Americans prioritize paying off debt ahead of making retirement contributions, and about one-quarter of Americans are counting on family members to support them financially when they retire.
Where retirees choose to live out their golden years could make a difference in how comfortable their retirement is, according to a separate WalletHub report.
“It’s important to choose wisely when picking where to retire, as many retirees are on a fixed income,” said Chip Lupo, a WalletHub analyst. “The best cities for retired people are those that minimize taxes and expenses, as well as have good opportunities for retirees to continue paid work for extra income, if they choose to do so.”
In addition, top cities for retirees provide high-quality health care and offer plenty of enjoyable activities for retirees, said Lupo.
WalletHub analyzed cities across the country to determine the five best and five worst for retirees. Topping the list of best places to retire is Orlando, which has a reputation as a haven for seniors for good reason. Orlando is one of the most tax-friendly cities in the country, and Florida does not have estate or inheritance taxes or income tax. While the cost of living isn’t particularly low in Orlando, it is relatively affordable for homemaker services and adult day health care costs, and it is highly ranked for recreational activities, including music venues, fishing facilities, art galleries and adult volunteer activities.
Following Orlando is Scottsdale, Arizona, which is bolstered in the ranking due to its abundance of activities popular with retirees, including golf courses, art galleries and book clubs. From a financial perspective, Arizona is tax-friendly with no estate, inheritance or income taxes.
Minneapolis ranks third on WalletHub’s list of best places to retire thanks in part to its reputation as one of the most friendly labor markets for elderly people in the country. More than 22% of the working population in Minneapolis is over age 65. The city has a highly rated hospital system and a large number of nursing homes and gerontologists
Rounding out the top five markets were Miami and Tampa, both of which benefit from Florida’s tax-friendly policies. The next five best markets for retirees were Atlanta, Fort Lauderdale, Cincinnati, Madison, Wisconsin, and Casper, Wyoming.
Meanwhile, four of the bottom five markets for retirees are in California, including San Bernardino, Stockton, Rancho Cucamonga and Bakersfield. Newark also ranked among the bottom five markets for retirees.
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