The Worst State to Retire in Isn’t New Jersey, According to a New Study
New Jersey is often labeled an unfriendly place to retire. Steep property taxes, costly housing, and a high overall cost of living have given the Garden State a reputation that sticks, especially once steady paychecks end. For many people, thinking ahead regularly lands on the mental list of states to avoid later in life.
But a recent WalletHub study points the spotlight elsewhere. According to its findings, New Jersey does not rank last. That distinction goes to Kentucky, which now ranks as the worst state for retirement based on the study’s broader mix of affordability, healthcare access, and overall quality-of-life measures.
How the Rankings Were Determined
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WalletHub compared all 50 states using dozens of data points designed to reflect what actually matters in retirement. The study grouped those metrics into three broad categories: affordability, quality of life, and health care. Together, those areas cover everything from housing costs and taxes to access to doctors, life expectancy, and overall well-being.
Kentucky finished last overall after posting weak results in two of the three major categories. While the state performed modestly in affordability, those gains were not enough to overcome serious shortcomings elsewhere.
Where Kentucky Struggles Most
The largest drag on Kentucky’s ranking comes from health-related measures. The state placed near the bottom nationally for health care access and outcomes, and it also ranks among the lowest for life expectancy.
Chronic conditions such as heart disease, diabetes, and respiratory illness are more common than average, which raises long-term health costs and affects daily quality of life for older residents.
Public health data cited alongside the ranking points to additional concerns. Kentucky has one of the highest adult smoking rates in the country and elevated death rates tied to cancer and chronic respiratory disease. In retirement-focused studies, those trends carry real weight because they signal higher medical needs over time.
Affordability Isn’t Enough to Offset the Risks
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On paper, Kentucky still appeals to retirees looking to stretch their savings. Housing prices remain well below the national average, and the state scores favorably for adjusted cost of living. In-home care and certain everyday expenses are also relatively affordable compared to many coastal states.
However, the analysis makes clear that lower prices alone don’t guarantee a comfortable retirement. When health care access is limited and long-term outcomes are poor, the financial advantage of cheaper living can quickly erode.
New Jersey, by contrast, struggles primarily with cost. Taxes and housing prices remain high, but the state benefits from a stronger health care infrastructure, higher life expectancy, and better overall quality-of-life scores. Those factors help keep it out of the bottom tier despite its well-known affordability challenges.
In other words, New Jersey may be expensive, but retirees there are more likely to have access to medical services and healthier long-term outcomes than those in states ranking lower overall.
The Bigger Picture Behind Retirement Rankings
It’s worth noting that no ranking tells the full story. Kentucky still offers tight-knit communities, scenic landscapes, and a slower pace of life that many retirees value deeply. For people with strong family ties or a focus on rural living, those qualities can outweigh statistical drawbacks.
That said, studies like this aim to measure broad trends rather than individual experiences. In Kentucky’s case, repeated low placements across multiple years suggest systemic challenges.
The biggest takeaway is that reputation doesn’t always match reality. New Jersey’s image as the worst retirement destination no longer holds up under closer analysis. Instead, states with lower costs but poorer health outcomes can pose greater long-term risks for retirees.