New Mexico has once again landed near the bottom of a national ranking for retirement-friendliness, according to a new report from WalletHub. The state ranked 46th overall, making it one of the worst places for retirees to settle down, largely due to concerns about affordability, quality of life, and healthcare. The ranking places New Mexico ahead of only Washington, Mississippi, Louisiana, and Kentucky, which was ranked the worst state for retirees in 2024.
The report compared all 50 states across 46 key metrics to assess their suitability for retirees, focusing on factors such as cost of living, healthcare access, and overall well-being.
WalletHub analyst Chip Lupo stated, “Retirement is supposed to be relaxing, but it can also be incredibly stressful given that it typically puts people on a fixed income, which may not be enough for them to live comfortably.” The study aimed to help retirees identify where they could maximize their retirement savings while enjoying a high quality of life.
Why New Mexico Scores Poorly
Despite its sunny climate and relatively low property taxes, New Mexico struggles in several key areas that are essential for retirees. One of the biggest concerns is healthcare access. The state ranked 33rd in healthcare, with relatively few high-quality medical facilities and a shortage of geriatric specialists. The cost of in-home care and assisted living services are also higher than in many other states, making long-term healthcare more expensive for aging residents. The high cost of medical malpractice insurance due to the Democrat-dominated legislature’s action has also astronomically skyrocketed the cost of health care and reduced the number of practitioners in the state.
Another factor working against New Mexico is its high crime rate. While many retirees prioritize safety when choosing where to settle down, the state has one of the highest violent crime and property crime rates in the country. This factor significantly impacts its quality-of-life ranking, which came in at 45th place nationally.
Affordability is another pressing issue. While New Mexico does not tax Social Security benefits, it still ranks poorly in retirement affordability (38th place overall). The cost of groceries, utilities, and transportation has risen in recent years, stretching fixed-income retirees thin. With inflation driving up everyday expenses, seniors in New Mexico may find their savings do not go as far as in other states like Florida or Wyoming, which both scored high on the list.
Comparing New Mexico to Other States
Florida was ranked as the best state for retirees, thanks to its low taxes, high number of recreational opportunities, and quality healthcare services. Florida’s lack of estate, inheritance, and income taxes makes it an attractive option for retirees looking to preserve their wealth. In contrast, New Mexico does not offer the same level of financial incentives, making it less competitive for those looking to stretch their retirement savings.
Other states that performed well include Minnesota, Colorado, and South Dakota, which all offer a combination of good healthcare, safety, and strong financial incentives for retirees. Meanwhile, nearby states like Texas and Arizona ranked higher than New Mexico due to stronger economies, better healthcare access, and lower costs of living.
Future Implications for Retirees in New Mexico
With the state continuing to struggle in areas critical for retirees, policymakers may need to address these issues to make New Mexico a more attractive destination for aging residents. This could include improving healthcare access, increasing safety measures, and providing better financial incentives for retirees to remain in the state.
As rising costs and economic uncertainty continue to affect retirees nationwide, those considering New Mexico may want to carefully evaluate how well the state aligns with their long-term needs. With 46th place on the list, the Land of Enchantment may not be the best choice for those looking for a stress-free and financially secure retirement.