So, we have retired, have we? You know it does not mean our lives are over. Maybe it’s time to get rid of that old house. Or it’s time to move from that apartment. Maybe warm weather sounds great to you. Whatever your reason may be, here are the most affordable States to retire.
When to Retire
That pretty much is a question that only you can answer. Possibly a decision to discuss with your loved one. Usually retiring means we can now apply for social security, even a pension. If you are one of the lucky few that can retire and are thinking of moving somewhere else, this article is just for you.
First, Some Things to Consider
Are you and/or your loved one active. If so, that’s great. I mean, why not you have extra time on your hands. That is what’s so great about this time of life, it is our time. It is time for us to start enjoying the second half of life. Maybe you’re into golf. There are so many 50 and older retirement communities in a lot of the most popular states. Offering a very active lifestyle
Maybe you want to start doing new activities such as biking, hiking, kayaking, fishing, or continue the hobbies you put off while taking care of your family. Some states are better than others if your active, so keep that in mind. I mean, if you’re into skiing, you wouldn’t want to move to Florida. 🙂
Some of us ‘golden warriors’ may have to consider the climate. Myself, warner climates are better for my arthritis then the colder temps. Let’s say you have COPD, then you may want to consider a place that is less humid than Florida. So when considering a more favorable climate in which to move to, consider how that climate may affect your health.
Consider the cost of living. In Florida, the price for a gallon of milk very high, compared to what we pay for a gallon in Indiana. And when the snowbirds come down for the winter, a lot of places raise their prices. Check out the rent, or what it cost to buy a home. We bought a fixer-upper on 2 acres of land for very cheap in Florida. So be creative. Be sure to do your research. You may regret it if you don’t. Also, remember taxes! Especially if you plan to buy a home or some land.
One that I wanted to add because a friend of mine did not do her research and moved from Colorado to Utah. She was on many financial assistance programs, that helped her with her many health issues. Now she’s having to go through the process of getting aid. I guess her disability was declined, and now it’s a waiting game, while her health continues to decline. So check things like disability, financial programs, etc.
Some retirees move to be closer to family and friends. Again consider everything I have written here. If the cost of living is extremely high, consider a more affordable to that is around the state your family or friends live in. A 4-hour drive sure beats a 14-hour drive!
Also, consider healthcare. A prime example here, healthcare is horrible in Florida. I don’t mean to rag on Florida, but I’ve had two experiences with Florida’s healthcare, and I now refuse to go to a doctor or hospital. Because we still have a home in Indiana, and 2 daughters we tend to go to Indiana often. When we’re in Indiana, we see our doctors. If you’re in great health, then healthcare won’t be as big a concern. Again, do your research.
Personal safety may be a consideration, especially if you’re one that may be living alone. Gated communities are a great place to live if feeling safe is a concern of yours. It is for me because I go to Florida by myself a lot. My .38 helps keep me feeling safe. 😀 So somewhere with a low crime rate may be something for you to consider.
Popularity isn’t really a big consideration. But if the population is considerably older, and those residents tend to remain there, well it’s a good indicator that older people like living there.
If you plan to continue to work, even after you move then consider the unemployment rate. As well as pay. My husband is a crane operator and a welder by trade. He can not find a job that pays anywhere near what he gets when he works in Indiana. That is why we still have our home in Indiana, he still continues to work, and he’s very comfortable with the company he works for. So until he can actually retire, he continues to work in Indiana. Take all of this into consideration if you plan to continue to work. Even if it’s part-time to supplement your current income. Research. Us baby boomers are known for researching.
To some, the overall wellness of where you’re thinking about moving to can not only be important to you, but it also tells you that where you are considering is a healthy place for you to kive. Get away from the smog and pollution. It is everywhere, but luckily some places have less of it than others. Like New York, compared to Iowa.
Considering all of the above can help you with your plan to retire. Unless you’re one that likes flying by the seat of your pants, having a plan answer a lot of questions you may have. And for me, having a plan, no matter how big or small helps me with any anxiety or uncertainty I may experience. Or even better, helps me to avoid these.
Most of these places don’t have bitterly cold winters nor extremely hot summers. I’ll list the average high and low. Remember these are average temps.
- Astoria, Oregon 67/38
- Atlanta, Georgia 89/34
- Cape Hatteras, North Carolina 85/39
- Charleston, South Carolina 88/44
- Eugene, Oregon 82/34
- Eureka, California 63/41
- Galveston, Texas 89/49
- Hilo, Hawaii 70/61
- Honolulu, Hawaii 88/61
- Kahului, Hawaii 87/63
- Key West, Florida 89/64
- Long Beach, California 82/46
- Los Angeles, California 83/48
- Norfolk, Virginia 87/33
- Olympia, Washington 77/34
- Portland, Oregon 81/36
- Salem, Oregon 82/35
- San Diego, California 75/49
- San Francisco, Californi 67/46
- Santa Maria, California 73/40
- Vero Beach, Florida 90/52
- West Palm Beach 90/57
- Wilmington, North Carolina 80/30
You’ll need to do more research on the above cities. Some are a lot wetter than others. And some more humid than others. Then there are those states unfortunate enough to possibly experience hurricanes, tsunamis, high winds, rain is much more common in some of these destinations. That is why research is so important.
States that are Tax-Friendly
Alabama does not tax Social Security. Their sales tax and property taxes are among some of the lowest, if not the lowest.
Alaska has no state income tax. I believe Alaska is the only state that has no state income tax. Unfortunately, property taxes can be high. After living in Alaska for a year or more can. This year, 2019, you can receive an annual payout from an oil wealth trust fund. This year, 2019, paid out roughly $1600. So crunch your numbers, see if this is a good fit for you.
Florida doesn’t impose an income tax. Sales tax is low and the property taxes aren’t what one would call particularly high.
Illinois allows social security and pension income can be subtracted from your federal adjusted gross income. Although property taxes are high. And sale tax are paid on most of one’s purchases – at 6.25%.
Mississippi has it set up where your pension and social security payments can be deducted or excluded from state taxable income. Staying on the positive side, property taxes are pretty low. But – nothing good comes after ‘but’- Mississippi’s sales tax is on the high side at 7%.
Nevada is most known for its casinos and nightclubs, but even better is they do not have a state income tax. Property taxes are in the middle range. Sales tax is at 6.95%
This is a list I came across while reading up on moat affordable states to retire. Figured I’d go ahead and share it with everyone.
- Costa Rica