There is no state income tax, but there is a stiff state estate tax and a high sales tax. Nearby beaches, fishing, boating, classy restaurants, a big arts/cultural scene and 30 golf courses dominate the appeal of this Gulf Coast city 60 miles south of Tampa. Other pluses include good air quality, a low serious crime rate and a high number of doctors per capita. Nevada. The 15 best, worst states for retirement in 2022 CT has a lot of woods and nice parks, plus cool downtown areas like Putnam, West Hartford, Storrs Center, and it's day trip central: Boston, New York, the Berkshires, the beach, etc., says ravensfell on Reddit. Cheap housing costs, low crime rates and low taxes attract plenty of retirees to Kentucky. Colorado #5. Texas. This is due to a low cost of living and light tax burden for residents. When delaying your RMDs might not be the best idea . Route 66 provides the historic backdrop for this outdoors-oriented town at an elevation of 7,000 feet, 145 miles north of Phoenix near the Grand Canyon. Delaware ranks 6th in density, 9th in percent of households with kids, and 9.5th for median age. I save money spending $2,633/month living in South Africa, How this 39-year-old earns $26,000 a year in California. Thousands benefit from our email every week. Diversity scores used the Census racial and ethnic diversity index and LGBTQ population densities compiled by the Movement Advancement Project. I showed her around one community, and she fell in love with it., (Are you planning to retire in 2022? But there is no state income tax on Social Security earnings and theres no state estate tax. The Gem State really says it all in the name residents brag of their friendly neighbors, Idahos scenic beauty and outdoor activities and the low cost of living. And when youve retired, maybe try renting for a while before you commit to buying., Clark Kendall, CFP, CFA, is president of Kendall Capital Management in Rockville, Maryland, and author of Middle-Class Millionaire: Family is the biggest consideration. Beautiful state parks too. The four seasons include cold winters. Montana ranks relatively well for its quality of life and affordability. Outdoor experiencesforests, parks, hiking terrain and whitewater paddlingand in-town culture abound around this scenic city in the Blue Ridge Mountains region of western North Carolina. Hello All, Welcome to my channel!Today we are examining which states are the best to retire in 2022. Florida has no state income or estate tax. With frontage on an inlet of Lake Michigan, Traverse City also offers water sports, more than 30 area golf courses and a reputation as a top dining town. But under the care of a pro, the . Social Security benefits are exempt and theres no state estate tax. As far as entertainment goes, New York has the most museums per capita and, along with California and Minnesota, the most theaters per capita. I love the red sandstone I was able to purchase a house here for way less than I thought I would, and my wife loves it! Elevation is 500 feet. Bankrate follows a strict I can see Zion National Park from my backyard. Quotes displayed in real-time or delayed by at least 15 minutes. The state topped our ranking of culture and diversity. Water is big in the summer. For example, WalletHub found that Mississippi has the lowest adjusted cost of living, while Hawaii has the highest. North Dakota 7. New Jersey #2. Bankrate.com is an independent, advertising-supported publisher and comparison service. More: How to get your retirement plan back on track. The top state income tax rate (on taxable income over $39,700) is 5.5%, dropping to 5.3% next year. Market data provided byFactset. Serious crime rate is higher than national average. The Sunflower State also exempts Social Security income from being taxed if you have an adjusted gross income of $75,000 or less and also exempts public pensions from being taxed. The median home value is little over $213,000, according to Zillow and you might be able to claim an exemption from the state income tax based on your income. Hilton Head has good air quality, an adequate number of physicians and a low serious crime rate. We value your trust. Among its health-related strengths, the state. According to Bankrate's study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. You'll pay no regular or retirement income tax, and Nevada property taxes are low," RetirementLiving.com says. This material may not be published, broadcast, rewritten, or redistributed. While some scenic destinations top the list, like sunny Florida and mountainous Colorado, the bottom of the list features two of the most populated states in the northeast. Its interesting to see that low-tax states like South Dakota and Texas dont make the top 10, or even the top 20 states with the most millionaires. Naples has good weather and air quality, an adequate number of physicians per capita and a very low serious crime rate. Delaware 5. Norfolk is up-and-coming with some amazing bars, and VB has the Oceanfront, which is a lot of fun day or night, says AquaKong35 on Reddit. Look at how youre going to spend your money, too. The Small Wonder might not be the first state that comes to mind when you think of retirement its not flashy and hot like Florida or adventure-filled like Arizona but it is the one of the most affordable states to retire to in the U.S. Delaware has no sales or estate and inheritance taxes, extremely low property taxes and wont tax you on your Social Security benefits. Mutual Fund and ETF data provided byRefinitiv Lipper. Iowa offers a lower cost of living, better healthcare, and lower home prices, making it safe and affordable. However, when it comes to health care, youll need to prepare for high insurance premiums and limited access with few physicians per capita, according to WalletHub. ), Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access 18 in Bankrates affordability index. Pittsfield, Massachusetts CITY POPULATION: 43,927 SHARE OF POPULATION 65+: 20.2% COST OF LIVING FOR RETIREES: 10% above the national average AVERAGE INCOME FOR POPULATION 65+: $56,620 Other pluses include a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. By comparison, the 2024 leave year won't begin for most employees until Sunday, Jan. 14, 2024 and the 2025 leave . The state income tax is a flat 4.55%, but it now excludes Social Security benefits and up to $24,000 of other retirement income. You can live close enough to a city that you're just 20 minutes away from doing whatever, but have the benefit of sparse enough homes that you're not living on top of each other. Still, on average, people across the U.S. have roughly $400,000 dollars to nest on. Oregon has no sales tax but makes up for that with an income tax rate that hits 8.75% at just $18,400 of income for joint filers (with Social Security excluded) and tops out at 9.9% for taxable income above $250,000. This year's list of the 25 Best Places to Retire highlights places with affordable homes, low taxes and high ratings for happiness and health care quality. Another good one is to pursue your avocational passions. 2023 Bankrate, LLC. So, whether youre reading an article or a review, you can trust that youre getting credible and dependable information. The winters are rainy but surprisingly temperate given the northern latitude. Many Florida cities have high desirability ratings based on a U.S. News online survey about where people age 45 and older are most interested in retiring. Despite an elevation of just 10 feet, Hilton Head has a moderate FEMA rating for natural hazard risk. Texas 6. The scenic area has extensive parks and waterways conducive to hiking, fishing and boating, plus 21 golf courses. Top criteria include the happiness of local residents, housing affordability, tax rates and health care quality. Despite getting some bad press, Oregons largest city has a lot going for it. There are thousands of retirees living quite happily in certain pockets of Montana, purely for the quality of life. The serious crime rate is above the national average. The state income tax rate is a flat 4.99%, but Social Security income goes untaxed at the state level, and there is no state estate tax. If youre making $100,000 in retirement income and moving to a $400,000 house, its a different scenario than if youre making $1 million and moving to a $5 million house., Ginni Field, a real estate broker in Oceanside, California, who specializes in senior buyers and sellers and holds the National Association of Realtors Senior Real Estate Specialist designation: Sometimes, people just want to get out of the snow. These states might offer blue skies and beaches or affordable housing and health care but its important to have a decently-sized nest egg before you decide where to live in your retirement. Housing is relatively cheap and Zillow places the median home value in the state at just around $225,500. And the states strong economy means housing has only gotten more expensive as well, reports KSL News Radio. Virginia also has some of the best elder abuse protections across the U.S., particularly in terms of total expenditure. 2022's Best States for LGBTQ+ Retirees. But a lot of areas are definitely living at a slow pace, writes APtop2015 on Reddit. Florida came in first in the overall ranking. Wyoming might be Americas most sparsely populated state, but it could be ideal for a retiree trying to escape the bustle of big cities and seeking adventure in the outdoors. The Ocean State ranks relatively well for its quality of life and health care and WalletHub reports that it has the second highest total expenditures on elder abuse prevention. Mississippi 5. Fort. Powered and implemented byFactSet Digital Solutions. Karen, now 69, a neonatal intensive care nurse, and David, 70, an investment banker turned software CEO, turned screenwriter and producer, had long known they wanted to settle in a smaller, scenic locale. Weve got the normal entertainment youd find everywhere and we get pretty decent Broadway tours if youre into that. Arizona Honorable Mention: South Carolina 5 Worst States For Retirement #1. And, of course, not everyone likes the sweltering summers of the Sun Belt states that populate the top of our rankings. Information and timely news from our team of trusted money specialists. Wyoming. Tallahassee, Florida, is pictured. Here's a look at the Best Places. Oklahoma. Sarasota, FL 2. Here are the 25 worst states to retire in 2022, ranked from bad to worst. These are the top 10 states that retirees are moving to: 1. There is also a state estate tax. To identify the most retirement-friendly states, WalletHub researchers compared the 50 states across the key dimensions of affordability, quality of life and health care. Aside from its annual motor racing spectacle, the Hoosier State offers some delightfully picturesque state parks and the Indiana Dunes National Park which lies along Lake Michigan. This haven for foodies has a big arts/culture scene, more than 60 area golf courses, lots of other outdoors activities, a culture of volunteering and free senior citizen auditing of classes at Portland State University. Get personalized advice from a financial advisor that understands your needs. Southern Oregon University hosts a lifelong learning institute and allows free auditing of college classes. Air quality is good, and there are adequate physicians per capita. But there's good news: As of early 2022, federally taxed Social Security income is officially deductible for those 65 and older. There are as many opinions on retirement as there are places to retire, especially in a country as large and diverse as the United States. "http:":"https:";if(/^\/{2}/.test(i)&&(i=r+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var a=e.createElement("script");a.async=1,a.id=s,a.src=i,d.parentNode.insertBefore(a,d)}}(document,0,"infogram-async","//e.infogram.com/js/dist/embed-loader-min.js"); Why should retirees pick Florida? It also scored third place on both WalletHubs and The Motley Fools tax rankings there are no sales taxes, property taxes are quite low and Social Security is only partially taxed. (iStock). In addition to examining the local laws, we considered the percentage of the population over 65, the percentage of the population identified as LGBTQ+, the average home price, and the cost of living to generate a list of states. Maryland not only has an income tax, but were also one of only seven states that has an estate tax. Naples has a relatively high (but not very high) risk rating on FEMAs National Risk Index and somewhat less hurricane exposure than certain other Florida coastal towns. My property tax is $600 per year, writes resident Christopher Finch on Quora. At an elevation of 600 feet, Traverse City has a very low natural hazard risk, according to FEMA. But recent trends may help point you in. Quaintly historic coastal city offers fine dining, a big arts scene, outdoor water activities and golf (with 39 courses in the area). August 18, 2022 / 12:01 AM / MoneyWatch What to do with your 401(k) in bear market Amid recession fears in bear market, experts say 401(k) investors should think long term 04:58 Special mentions go to Delaware, Virginia, and Washington, which were all in the top 20 on both lists. Money concerns play a big factor in those low rankings, with New York ranking as the least affordable state and New Jersey following right behind, whereas Mississippi ranks at the bottom in terms of the quality of life, according to WalletHub. The University of Florida provides a number of lifelong learning opportunities, including no tuition for auditing courses, in this inland college town 115 miles northwest of Orlando. Florida ranks well, as it does. Bankrate has answers. Kansas received middling scores for affordability and health care but watch out for its higher-than-average crime rates. Florida: Florida is a top retirement destination for many reasons. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. This abandoned high school was converted into a 31-unit apartment building. FEMA rates Portland as having a relatively low natural hazard risk. It features a big music and dining scene as well as free senior citizen tuition for six credits a semester at the University of Texas at Austin. At an elevation of 16 feet, the area is very walkable and bikeable, with good air quality and an adequate number of physicians per capita. Another: A 6.5% state income tax kicks in for couples at just $16,040 of taxable income. Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We also have thousands of acres of forest and miles of freshwater riverways bubbling from some of the largest springs in the world. Named for a 17th century ship captain, this Atlantic Ocean barrier island sits near 67 golf courses and affords all kinds of outdoor recreation opportunities on land and water, including hiking, fishing, kayaking and boating. "Nevada is a tax-friendly state, making it ideal for many retirees. Iowa is an underrated state, which means it is far from crowded. Whats vitally important for people in that age group are medical care, access to shopping and public transportation. Iowa is the best state overall for retiring. There is also a state estate tax. For weather scores, we relied on three decades of average daily temperature data from the National Oceanic and Atmospheric Administration. No other states surpass their density of residents over the age of 65. It bristles with dozens of art galleries, fine restaurants and museums, plus world-class skiing and other outdoor land activities. City is very bikeable but not so walkable. The Hawkeye State gets major points for health care and cheap housing. FEMA rates Pinehurst as having a relatively moderate natural hazard risk. Also only 45 minutes away from Cheyenne or Ft. Collins, recommends one Redditor. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. When I see people retire and move to different parts of the country, 70 to 80 percent of the time, its to be close to family. Kelly Miller, AARP, Updated January 2011 . Crime rates in the state sit relatively low as well. The University of Arkansas offers free tuition and fee waivers to senior citizens at its flagship campus in this Ozarks city 200 miles northwest of Little Rock. The Most Affordable Places to Retire. Start Slideshow . Theres no state income tax on Social Security earnings, but there is a state estate tax. I paid $189,000 under a USDA loan. Elevation of 2,100 feet makes most summers non-sweltering. It's no surprise that money is such an important consideration when choosing the best place to spend your retirement years. Volunteering is a way of life. Most are good for multiple passions, and oneAustin, Tex.hits all seven. Most of the state is exceptionally friendly and welcoming, writes resident Martin Mann on Quora. Weve averaged three recent state rankings to create one master list. Missouri #8. This Atlantic Ocean city 100 miles north of Boston offers a wide variety of water and land recreation, including boating, kayaking, rafting, cross-country snow skiing, hiking and bicycling. Florida was at the top of the list. Homebuyers are paying nearly 50% more on their mortgage bill than last year. Virginia #4. A maximum score of 150 was possible. While our flagship annual best retirement places list identifies locales offering good retirement bang for the buck, this list seeks out value for the soul. Go trekking through the gorgeous Yellowstone and Grand Teton National Parks and dont miss Cheyennes annual Frontier Days Rodeo. Temperatures can plummet to an average low of 2 degrees Fahrenheit in Glasgow and 22 degrees Fahrenheit in Flathead Lake in the month of January, according to climate and forecast site Weather Atlas. That's a good thing, as the Peach State has over 350 golf courses, plus many parks, lakes, and rivers. Our goal is to give you the best advice to help you make smart personal finance decisions. The Villages in Florida is one of the largest retirement communities in the U.S. Fox Business Flash top headlines for January 24. By Kirk Miller. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Plus, theres no state estate tax. We are an independent, advertising-supported comparison service. Coeur dAlene has a high number of physicians per capita, good air quality, and a low serious crime rate. Louisiana T-3. Bend is a scenic outdoor playground, 160 miles southeast of Portland. I semi-retired in Charleston five years ago after working full-time here since 2011. Maryland #4. 1. so you can trust that were putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Alaska, on the other hand, held last place in our ranking. Our reporters and editors focus on the points consumers care about most how to save for retirement, understanding the types of accounts, how to choose investments and more so you can feel confident when planning for your future. Decide whats truly worth it while picking out a place for your golden years. 3. For me, I enjoy the outdoors and am heavily involved in equestrian things so the low price for land is perfect. But there is no state income tax on Social Security benefits and no state estate tax. The study examined five categories (weightings in parentheses): affordability (40 percent), wellness (20 percent), culture (15 percent), weather (15 percent) and crime (10 percent).Affordability was calculated using the Cost of Living Index from the Council for Community and Economic Research, published in July 2022, and property and sales tax rates from the Tax Foundations rankings for 2022. We also used NOAA data for tornado strikes and hurricane landfalls, along with earthquake reports from the U.S. Geological Survey.We calculated crime using the rates of property crimes and violent crimes per 100,000 inhabitants for each state from the FBIs 2019 Crime in the United States report. It's not easy deciding where you'll spend what will hopefully be some of the most relaxing years of your life. Are your retirement savings on track? Retirement savings cheat sheet: A quick contribution guide for 2023 . 3. 10 Tax Breaks for People Over 50. 23. Alaska did rank first in one subcategory its residents bear the nations lowest tax burden. I have a 2,400-square-foot, four-bedroom, three-bathroom, all-brick house sitting on 1.25 acres. A new, lower flat income tax rate will take effect in 2023. But others are not as well-equipped to exit the workforce, which is why affordability is one of the key factors to consider when you're looking for places to settle down. The Show Me State doesnt exactly brag about its potential as a retirement destination, but it has its appeal for someone on a fixed income whos looking for a place with a low cost of living. Thanks to its famed theater complex, the town of 22,000 also punches above its weight when it comes to art galleries and fine dining a priority for the Griffiths. There is no state income tax on Social Security benefits or a portion of pension income, and no state estate tax. Some states offer tax breaks on retirement income. Youll require a large nest egg to retire in Americas tiniest state it isnt particularly tax friendly for retirees and housing is expensive but it might be well worth the costs. Alabama #7. 3. Plus, theres a solid volunteering culture. A Division of NBC Universal, Jeffrey Greenberg | Universal Images Group | Getty Images. Here with some help is personal finance website WalletHub, which has a new report ranking the best and worst U.S. states to retire in based on factors like affordability, quality of life and health-care. What a $1 million nest egg looks like in today's America . Idaho 8. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Georgia #3. Not everyone can afford to live on fixed incomes as prices rise. Bankrate looked at several public and private datasets related to the life of a retiree. HOW TO RETIRE WITH $1M ON A $50,000 SALARY. Situated between Brazil and Argentina, Uruguay is a Spanish-speaking nation of around 3.5 million people, with warm summers and mild winters. We acknowledge theres plenty of subjectivity in choosing a place to live in retirement. Aimlockbelch on Quora recommends the local eateries in the state. Connect with a financial planner today. The Peace Garden State has one of the highest numbers of hospital beds per capita and plenty of eldercare organizations and services available to the public, according to WalletHub. To find some objective answers to the where-to-retire question, Bankrate crunched a bevy of statistics on costs of living, public health and other metrics. These are the most affordable states to retire to, based on the adjusted cost of living, tax friendliness and the cost of care services. Our experts have been helping you master your money for over four decades. The town is bikeable but not all that walkable and has a low natural hazard risk. There are above-average doctors per capita and good air quality. All of our content is authored by Some say the grass really is greener in the Bluegrass State which offers plenty of perks aside from horses and fine bourbon. Elevation is 2,200 feet. The states cost of living has been rising, although the tax burden remains light. Beantown's about a 45-minute drive south. 2. There are adequate physicians per capita and good air quality. Led by famous century-old Pinehurst Resort, some 40 golf courses plus golf schools surround this idyllic village with a temperate climate, 90 miles east of Charlotte. As noted above, the best state to retire in will depend on an individual or couple's budget, lifestyle, and values. The state is made almost entirely from limestonea sedimentary rock that is not gold-bearing! There is also a state estate tax. On the other hand, Maryland is way below the cadre of ranking. To see the overall ranking, here are the best states to retire in this year, according to WalletHub. Best States to Retire in 2022 Arizona No matter where in Arizona you choose to retire, you will be within a few hours of major historic sites, stunning National Parks, beautiful golf courses, and you'll be able to explore them while enjoying the warm desert weather. You wont get taxed on your Social Security benefits, but any retirement income from your pension or other accounts are fair game. Here, in ascending order, are the best states for LGBTQ+ retirees to live. Ashland is at moderate risk for natural hazards. See the gallery for the 15 best states for retirement, according to WalletHub. We have culture. It ranked within the top 15 states for the lowest rates of identity theft, fraud, and violent crime. This is a BETA experience. I retired to Madison and think it's perfect easy to get to outdoor activities, but also lots of activities all year long within the city, from fitness classes to pickleball to pools to art classes, live music, great restaurants, libraries, and shopping. Elevation is 150 feet. Connecticut: 6.99% on incomes over $500,000 ($1 million for married filers of joint returns) Nebraska: 6.84% on income over $32,210 ($64,430 for married filers of joint returns) West Virginia: 6.5% on income over $60,000 (for both single filers and married filers of joint returns) Tennessee. We have a ton of coastline and incredible seafood you'd pay a premium for right outside, you just have to dig it up! The city is very bikeable and somewhat walkable. The Sunshine State has long been a haven for retirees. Worst State: 2x Difference Alabama vs. Hawaii Annual Cost of In-Home Services Lowest 1. As a result, many retirees are looking for ways to stretch their savings. Basically, you dont need to travel far to find really great places to eat.. I am told that we have good fishing streams, and people certainly do hunt.. The city is very bikeable and somewhat walkable. All Rights Reserved. According to a 2021 report from the Health Policy Institute of Ohio, the state tanks for population health (which includes metrics like adult smoking and heart disease mortality), health care spending and prevention. Lancaster, PA 6.