According to a poll conducted by the National Institute on Retirement Security, more than half of all Americans, or 56%, are anxious that they won't be able to attain a financially secure retirement by the time they reach retirement age.

According to 2022 Anytime Estimate Retirement Finances Survey findings, the financial strain drove many people in the United States to cease saving for their retirement. In fact, just 63% of individuals are now saving for retirement, which is a significant drop from the pre-pandemic average of 93%, and the median amount of money Americans have saved for retirement is only $71,500.

What many people in the United States already know to be true is supported by several other research and surveys: most of us are not financially prepared for retirement. It's possible that a lot of individuals won't be able to retire at home because they won't have enough money. Some individuals may think of migrating to another country where the cost of living is lower, and they can access cheaper healthcare.

New York

While New York does not have the highest cost of living in the United States as of 2022, the overall tax burden for the state in 2022 is 15.9%, much more than the average for the country. It's the highest you'll find anywhere in the nation. In 2022, the state and local governments collected around $3,180 per capita in property taxes, while the state collected a total of $3,407 per capita in state and local taxes, which was the highest amount in the nation.

Connecticut

Regarding the money needed to maintain one's standard of life, Connecticut ranks third among the states. The state collected $2,725 per person in state and local taxes in 2022, contributing to the state's tax burden, ranking as the second highest in the country at 15.4%. The money collected from property taxes comes to around $3,215 per person (the third highest in the country).

California

The cost of living in California is the second highest in the US, while the state's tax rate is the fifth highest. The state's top rate of individual income taxation is 13.3%, the highest percentage among states that levy an individual income tax. The total tax burden for 2022 is 13.5%, and the state collected $2,411 per capita in state and municipal taxes (the fourth on the list).

Property taxes account for about $1,840 of each citizen's annual contribution to state and municipal governments. The aggregate rate in special city and county taxation districts may be as high as 8.82%, much higher than the state sales tax of 7.25%, the highest among the states indicated below. Although Social Security and Railroad Retirement payments are not subject to taxation in California, taxes are applied to all other forms of income received during retirement.

New Jersey

As of the year 2022, the state of New Jersey has the seventh-highest cost of living, with a tax burden of 13.2%. The state and local tax revenues were around $1,692 per person, while the property tax receipts were approximately $3,513.

New Jersey levied both an inheritance and estate tax up to 2018. For inheritances of more than $500, recipients not near relatives are normally exempt from the inheritance tax; however, other beneficiaries are subject to tax rates ranging from 11% to 16%. Those who passed away on or after January 1, 2018, are no longer subject to the estate tax. This change took effect on January 1, 2018.

Vermont

The cost of living in Vermont is the sixth highest in the US, while the state's tax rate is the fourth highest. Its tax burden for the year 2022 is 13.6%, and it collected $1,312 per capita in state and municipal taxes (16th in the rank). The amount collected from property taxes is around $2,928 per person (fifth in the rank).

The vast majority of income received from retirement is subject to taxes at the same rates as regular income. This includes Social Security payments, which are taxed at up to 85% (the same as the federal rate). The exception applies to Railroad Retirement Benefits.

Maine

As of the year 2022, the tax burden in Maine was 12.4%, making it the tenth most costly state to live in and the state with the highest tax rate. State and local taxes were collected at a rate of $1,199 per capita by the state, placing it sixteenth in the table, while property taxes were collected at a rate of $2,772 per capita (sixth in the rank).

While there is no inheritance tax, Maine's estate tax rate varies from 8% to 12%. For the tax year 2022, the tax applies to estates with a value of more than $6.01 million; for 2023, the threshold increases to $6.41 million. While Maine does not impose taxes on income from Social Security, the state does impose taxes on other kinds of retirement income, with rates reaching as high as 7.15 percent.