Retirement is a big milestone—and for military retirees, it's often the stepping stone to a new career, too.
After all, typical military retirees range in age from 42 (enlisted) to 45 (officer), and that's a little young for most of the hard-charging types to want to kick back and content themselves with making a tour of duty of military golf courses for the rest of their lives—in effect, be sent out to pasture.
A more unlikely goal for a former servicemember is hard to imagine.
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Add to that the fact that, good as it may be, a military pension (or now, the new blended military retirement system) isn't really enough to get by on—certainly not for a former servicemember still raising a family.
So a new career really is in order.
But what to do?
Not only do many former military personnel face challenges in reassimilating into civilian life, they have to (or should) consider the effects of tax laws and other factors on the military benefits they're entitled to. For instance, some states tax military pensions; some don't; and some tax part but not all.
Then there's the medical question.
Some states have great military medical facilities, easing the health care burden; others have very few. Specific physical and mental health conditions, including disability and post-traumatic stress disorder, can mean the presence or absence of a military facility could be critical to long-term health, particularly in these days of cutbacks by federal and state governments.
But if there aren't military facilities available, good civilian facilities that accept Tricare can be crucial.
There are other elements to consider, too. How friendly is the local job market to veterans? What's the veteran population in the state? How many veteran-owned businesses are there? Where is housing most affordable? Which states have the lowest percentage of homeless veterans?
All of these can be really important to a newly minted military retiree and his or her family.
So WalletHub took a long hard look at the issue, reviewing all 50 states and the District of Columbia for a range of factors in three key areas: economic environment, quality of life and health care. Those factors were evaluated using 22 relevant metrics, each one graded on a 100-point scale, with a score of 100 representing the most favorable conditions for military retirees.
The additional 22 metrics are as follows: In economic environment: state tax on military pension; tax friendliness; share of veteran-owned businesses; dollars in defense department contracts per capita; job opportunities for veterans; state authorization for veterans' preference in private hiring; job growth; number of military bases and installations per 100,000 veterans; housing affordability; cost-of-living index. In quality of life: share of veterans; share of VA benefits-administration facilities per number of veterans*; quality of university system; arts, leisure and recreation establishments per capita; share of population age 40 and older; share of homeless veterans; idealness of weather. In health care, number of VA health facilities per number of veterans*; federal, state, local and private hospitals per capita; physicians per capita; quality of VA hospitals; presence of veteran-treatment courts.
Asterisked metrics measured the "number of veterans" by the square root of the veteran population in order to avoid overcompensating for small differences among states, considering Veterans Administration (VA) facilities have not increased proportionally with the number of veterans.
Total scores were then calculated for all 51 candidates, based on their weighted average across all metrics; the resulting scores were used to construct the final ranking.
Data came from the U.S. Census Bureau, Bureau of Labor Statistics, Military Officers Association of America, USAspending.gov, U.S. Department of Veterans Affairs, MilitaryINSTALLATIONS – U.S. Department of Defense, U.S. News & World Report, Gallup Healthways, Council for Community and Economic Research, U.S. Department of Housing and Urban Development, Indeed and WalletHub research.
Here are the 5 best, followed by the 5 worst, states for military retirees:
5 best states for military retirees:
5. South Carolina
With a total score of 57.93, South Carolina came in at #5 with an economic environment rank of 10 and a quality of life rank of 1—although when it comes to health care, it only ranks 27.
It also scored first in the number of veteran-owned businesses.
4. Wyoming
Scoring 59.40 out of 100, Wyoming got only a 27 in economic environment, but took fifth place for quality of life and third place for health care.
Part of the reason for that high health care rank is undoubtedly due to the fact that it has the second-largest number of VA health facilities per number of veterans of any state or D.C.
3. New Hampshire
With a total score of 59.83, New Hampshire rocks when it comes to economic environment, at 2. It also has a 3 in quality of life, but just comes in at 29 for health care.
The state also scored a 4 for the number of veteran-owned businesses it's home to.
2. Montana
Montana's total score is 62.12, even though its economic environment rank is just 24. But its quality of life score is 7 and its health care score is at the top of the list, at #1.
In addition, the state has the most veterans per capita—so apparently they're pretty happy in Big Sky Country.
1. Florida
With the highest overall rank at 63.74, Florida also gets kudos for all of its individual rankings being in the single digits—economic environment came in at 8, health care was 4, and quality of life was 2.
It also has the fifth most VA health facilities per number of veterans.
5 worst states for military retirees:
5. Utah
When considering where to move, veterans are better off considering most other states first.
Utah got an overall score of 42.58, with an economic environment rank of 25 and a health care rank of 36. But most dismal of all is its quality of life rank, in dead last at 50.
In addition, the state has the fewest veterans per capita, coming in at 47, although ironically it has the fifth most job opportunities for veterans in the country.
4. North Carolina
While its neighbor South Carolina made the top 5, North Carolina is doing far worse by veterans.
Its overall score is just 42.47, while its best score in the three main categories is quality of life at 27. After that, it's all over—it places 43 for economic environment and 48 for health care.
3. Rhode Island
Poor little state—Rhode Island scored just 41.31 overall, with a 35 for quality of life, a 41 for health care and a 48 for economic environment. Not exactly a high recommendation.
The state also has the fewest VA health facilities per number of veterans, which means vets could be left scrambling to find treatment for lingering mental and physical health issues if they move there.
2. New Jersey
In 50th place out of 51, the Garden State's grass is certainly not greener for veterans.
What with its overall score of 37.17, a quality of life rank at 34, an economic environment rank of 46 and the worst score of all 51 localities—at 51—for health care, you might as well fuggeddaboudit.
Sensibly enough, it has the third least number of veterans per capita, in 49th place—especially since it came in at 50 out of 51 for having the least percentage of veteran-owned businesses.
1. District of Columbia
The nation's capital captures the dubious distinction of being the absolute worst place in the country for military retirees to settle down.
With a total score of 36.45, an economic environment rank of 45, a health care rank of 46 (and this is with Bethesda and other military hospitals so close!) and a quality of life rank dead last at 51, D.C. doesn't have much but politics to recommend itself—and we all know how that goes.
The city also boasts (if that's the right word) a number of one-of-the-worsts: it's next to last for number of veterans per capita, 49th for fewest VA health facilities per number of veterans, dead last for the highest percentage of homeless veterans and for fewest job opportunities for veterans, next to last for least affordable housing and 47th for lowest percentage of veteran-owned businesses.
In fact, it made the bottom five in every single category called out by WalletHub.
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