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The 10 worst states for retirement

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No. 6: Hawaii
Hawaii © Kokkai Ng/Shutterstock.com

No. 6: Hawaii

Weaknesses: Cost of living, taxes

Initially, the biggest problem you might have here is choosing which of Hawaii's 6 gorgeous islands to retire on. The 2nd biggest problem you'll have is paying for it.

Hawaii has a high cost of living that will be tough on those living on a fixed income. Honolulu is the 2nd most expensive place to live, ranking 2nd to New York City, according to the Council for Community and Economic Research. Homes in Honolulu run around $925,922 -- triple the average price in the U.S. A trip to the eye doctor runs around $152 -- around double the national average. Even pizza costs $12.53 -- about 34% more than it does most other places.

Residents of Hawaii pay an individual income tax rate of 11% -- the 2nd highest in the U.S.

Despite the financial burden, residents here are incredibly satisfied with life. For the 2nd straight year, Gallup-Healthways gave Hawaii the highest score in the country for personal well-being.

RATE SEARCH: If you're planning for a trip to an exotic destination, first save your money in an account with the best savings rates at Bankrate.com.

Sources: Agency for Healthcare Research and Quality; Gallup-Healthways; the Council for Community and Economic Research; the FBI; the Tax Foundation, and the National Oceanic and Atmospheric Administration.

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