The 'don't move there' list: 10 retirement destinations financial planners warn about

Retirement is supposed to be the reward at the end of a long working life. You've saved, sacrificed, and planned.

The last thing you want is to pick the wrong state and watch your nest egg quietly disappear. Yet every year, thousands of retirees make location decisions based on sunshine, family, or a vague feeling, rather than hard financial data.

The truth is, where you retire can matter just as much as how much you save. A state's tax structure, healthcare access, crime rate, and fiscal health can genuinely make or break a retirement budget.

Here are ten destinations financial planners consistently flag as dangerous choices, and the real numbers behind why.

1. Louisiana: Ranked Dead Last by Financial Analysts

Let's start with the most alarming result: Louisiana. According to Bankrate's 2025 Best and Worst States to Retire Study, Louisiana turned in poor rankings across all major categories, failing to rank higher than 36th in any of them.

On the heavily weighted categories of affordability, neighborhood safety, and healthcare, the state posted dismal performances, ranking 43rd, 48th, and 37th respectively.

Louisianans experience a crime rate roughly two thirds above the national average.

The health of the population also ranks poorly compared to other states, with high rates of obesity, smoking, and mental distress. For seniors who need frequent medical attention, those numbers are deeply concerning.

Yes, the food is extraordinary. The music scene is world-class.

Honestly, Louisiana has soul like almost no other place in America.

2. New Mexico: Highest Crime Rate in the Country

Ranked last overall in a major 2025 state analysis, New Mexico struggles with the highest crime rate in the country and the second-lowest quality-of-life score. Retirees face challenges in both healthcare access and community safety.

New Mexico has the second-worst crime rate nationwide, with a crime score of just 2 out of 100 in a major study. The state's healthcare score was 40, while it scored 50 out of 100 for taxes.

2 per 100,000 individuals. That's not a statistic you can brush off.

3. New Jersey: Worst Overall Retirement State for Two Years Running

New Jersey has been named the worst state to retire in by CareScout due to its high cost of living and top personal income tax rate, as well as poor aging health overall. It does, however, have the country's highest average Social Security income at $29,562.

That high Social Security figure might sound encouraging at first glance.

New Jersey's designation as the worst state to retire is driven by its high cost of living and top personal income tax rate.

This is the second year in a row New Jersey came in last. 2 percent.

4. California: Beautiful But Financially Brutal

8 percent. For a retiree drawing down savings, those taxes compound year after year, silently shrinking what was supposed to be a comfortable cushion.

California ranks worst in housing affordability, with median home prices well over $700,000, making it financially impossible for many retirees to buy or maintain property. Crime is also a serious concern, with California's crime rate identified as roughly a third above the national average.

The mountains, the coastline, the culture: it's all real and it's all spectacular.

5. Illinois: A Pension Crisis Hiding in Plain Sight

With $15,804 in pension debt per person, Illinois has the highest unfunded pension liabilities per capita, according to a major Reason Foundation study using data through 2024. That debt does not disappear.

It eventually lands on taxpayers in the form of higher taxes and reduced services. 29 trillion, is owed by state governments, and overall, state and local governments have only 79 percent of the funds needed to fulfill pension promises made to public workers.

Illinois is one of the worst offenders nationally. Chicago is brilliant and culturally rich, and that's not in dispute.

The problem is the fiscal time bomb underneath it.

6. Connecticut: Taxed from Every Direction

Connecticut has the second-most public pension debt per capita at $10,151, signaling that the fiscal pressure on residents is not going away anytime soon. On top of that, Connecticut currently uses a graduated estate tax with rates up to 12 percent in 2025, which means not only are you taxed while you live, but your heirs may face a significant bill when you pass.

Homeowners in Connecticut pay some of the highest property tax bills in the United States, with a median tax bill of $6,575. So even retirees with lower incomes might find Connecticut an expensive place to live.

Connecticut also remains one of the nine states that still tax Social Security benefits as of 2025.

7. New York: The Heaviest Overall Tax Burden

New York has the heaviest tax burden of any state and faces issues with expensive housing and overall affordability. Despite its cultural appeal, many retirees find it hard to maintain financial security, especially outside of major metro areas where healthcare access and safety are also concerns.

3 percent of seniors live in poverty and nearly one in five work past retirement age. According to a November 2025 report by the University of Massachusetts Boston, an estimated 860,000 New York residents face a substantial risk of financial insecurity, with sharp disparities across gender, ethnicity, marital status, and geography.

In one major 2026 study, New York garnered the worst tax score in the entire country, scoring zero out of 100.

8. Arkansas: Poor Healthcare When You Need It Most

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Hawaii ranked as the worst state to retire in according to one major 2025 retirement analysis, requiring the highest retirement savings nationwide, at $1,673,300, and offering limited healthcare access for seniors. That's a staggering number.

To put it in perspective, that's nearly three times the savings required to retire comfortably in West Virginia.

Hawaii, despite its beautiful year-round weather and stretches of beaches, is the worst place to retire if you're keen to make your funds stretch.

The cost of living on the islands is the highest for all states, with annual spending for a comfortable retirement calculated at $117,724 per year. In addition, it has some of the lowest numbers of cultural institutions out of all the states.

That annual spending figure alone would exhaust even a robust retirement portfolio within two decades.

10. Florida: The Surprising Sun Belt Trap

Here's the one that shocks people. Florida, the retirement destination everyone knows, the place with no income tax and seemingly endless warm weather, is actually turning into one of the most financially risky choices for retirees.

Bankrate's analyst Stephen Kates, CFP, noted directly that Florida didn't land very high on the list.

Florida, despite its enormous popularity among retirees, actually ranks among the lowest in economic strength due to rising living costs and high senior poverty rates.

Rising living costs mean retirees now need about $685,000 in savings to live comfortably in Florida. A recent analysis found that about one third of retirees in 2025 are cutting back on essentials like groceries and medical care just to make ends meet.

Final Thought: The Gap Between Perception and Financial Reality

The single biggest mistake retirees make is choosing a destination based on how it looks on a vacation, not how it performs as a permanent financial environment. Where you choose to retire can make a big difference in how far your money goes, especially since roughly two thirds of non-retired adults say their retirement savings aren't on track.

On average, someone turning 65 today can expect to live nearly two more decades, according to the Centers for Disease Control and Prevention, making decisions about where and how to retire more consequential than ever. That's twenty years of property taxes, healthcare bills, and living costs.

The worst states to retire in have high taxes and living costs, lack access to affordable healthcare, and rank poorly for other quality-of-life factors like weather and crime. The good news is that the data is out there and it's getting clearer every year.

The only question is whether you look at it before you pack up the moving truck, or after. Which of these states surprised you the most?

Tell us in the comments.

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