The Mountain State peaks at the top when it comes to both affordability and natural beauty West Virginia flaunts breathtaking parks and preserves and numerous hiking trails. Our choices span all four continental time zones and 16 states. We pay an extra $500 per month. 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. One downside: a serious crime rate above the national average. Hilton Head has good air quality, an adequate number of physicians and a low serious crime rate. After all, 26% of non-retirees have no retirement plan at all, according to a 2021 report by the Federal Reserve. 6. The top state for retirement this year leads in affordability and quality of life but lags when it comes to healthcare, according to one new ranking. The state income tax rate is a flat 5%. As a result, many retirees are looking for ways to stretch their savings. Those are deeply personal questions. Bankrate follows a strict For weather scores, we relied on three decades of average daily temperature data from the National Oceanic and Atmospheric Administration. By Liz Brumer-Smith - Feb 23, 2022 at 7:00AM Key Points. Arts/culture and fine dining are considered tops and there are ample opportunities for outdoor water and land activities. Maine is by no means cheap to live in, but if you can afford the housing and taxes, youll benefit from a relatively high quality of life and lack of crime. 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. If you love the outdoors, you can settle down by the sea and take part in sailing, surfing and fishing Rhode Islands coastline stretches for 400 miles. Zero down, 3.25%, 30-year fixed. The city is pretty walkable and bikeable. Indiana. Social Security income is tax-exempt, and most types of retirement income if your 62 or older. On the other hand, Maryland is way below the cadre of ranking. We prefer our rural areas to crowded places anyway We live a lifestyle that others may call slow, but we love things such as boating, fishing, hunting, and sitting around a campfire, says resident Audrey Seibel on Quora. In its own world 30 miles northwest of Denver, Boulder is the center of a large recreational open space abutting the Rockies at an elevation of 5,400 feet. Property and sales taxes are relatively low and Social Security benefits dont get taxed at all. It also ranks as No. We value your trust. Washington. Plus, theres no state estate tax. Move over, Florida. The following 12 states tax at least a portion of social security income: Colorado Connecticut Kansas Minnesota Missouri Montana Nebraska New Mexico North Dakota Rhode Island Utah Vermont Theres no state income tax on Social Security earnings, but there is a state estate tax. 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. Florida is runner-up for the best states to retire in this year, thanks to its golden sunshine, gorgeous beaches, low taxes and large retirement communities. Florida came in first in the overall ranking. 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. FEMA rates Tampa as having a relatively high (but not very high) natural hazard risk. 23. Melbourne, FL 5. There is a high rate of volunteering. Virginia 3. For those who do not mind colder winters, a lakeside community in a state like Michigan or Ohio can. The capital of Texas hits all the leisure passions we rate. 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. 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. John Coletti/Getty Images For retirees looking to move soon, recent data on Redfin shows there were more sales for homes in the state as of December 2022 than there was a year earlier, but the . August 31, 2022 There is one list that no state wants to be on - the one that names the worst states for retirement. 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. Flagstaff has a relatively high (but not very high) risk of natural hazards, according to FEMA. 10. The state topped our ranking of culture and diversity. Portland has a relatively high (but not very high) risk for natural hazards, according to FEMA. Alabama T-3. Georgia ranks fifth-warmest state, meaning retirees have more days to enjoy the great outdoors. With a raise next year of 5.9%, Nevada's Social Security recipients will get $1,614.41 per month. Legal Statement. 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. For me, I enjoy the outdoors and am heavily involved in equestrian things so the low price for land is perfect. The Best Places to Retire in 2021-2022. An 85-year Harvard study found the No. Housing costs are on the cheaper end as well. Here are the 25 worst states to retire in 2022, ranked from bad to worst. Here, in ascending order, are the best states for LGBTQ+ retirees to live. Our experts have been helping you master your money for over four decades. West Virginia has the fewest museums per capita, while Mississippi has the fewest theaters per capita. so you can trust that were putting your interests first. The scenic city is very walkable and bikeable and has a high ratio of doctors per capita, plus good air quality. It only takes 3 minutes to connect with an advisor who puts you first. Yet, Delaware ranks second in best states to retire and the data supports it. Our editors and reporters thoroughly fact-check editorial content to ensure the information youre reading is accurate. Nebraska offers a slower pace of living for a retiree whos content to simply sit back and relax plus a few cool geological monuments and parks to check out in your spare time. While property taxes are relatively high, the median home value is just around $180,000, according to Zillow. The state is made almost entirely from limestonea sedimentary rock that is not gold-bearing! We maintain a firewall between our advertisers and our editorial team. Among its health-related strengths, the state. The Best States To Retire In. The city is beautiful and great for walking or biking. The Pine Tree State boasts beautiful beaches, an abundance of green spaces and some delightful lobster shacks. Do these seven things now, Why Florida is Bankrates best state for retirement in 2022, The best and worst states for driving: All 50 states, ranked, Why Georgia is Bankrates best state for retirement in 2021, One of the least populated states should be Americas hottest retirement destination heres why, California Consumer Financial Privacy Notice. Lake Cumberland is lots of fun for a weekend getaway. Florida really may be the best state to retire in, according to a new report. 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. 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. Reminder: You still have time to add to your IRA for 2022 . There is no state income or estate tax. FEMA rates the natural hazard risk in Walla Walla as relatively low. While we adhere to strict 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. 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. You'll pay no regular or retirement income tax, and Nevada property taxes are low," RetirementLiving.com says. The Buckeye State offers a low cost of living and a multitude of recreational opportunities take the Cuyahoga Valley National Park, for example, with its lush waterfalls and trails. Information and timely news from our team of trusted money specialists. Elevation is 560 feet. Market data provided byFactset. There is no state income tax, but there is a stiff state estate tax. Winters are cold. Overall it is a nice place to live, with mostly small cities and towns that offer low cost of living, low crime, friendly genuine people, and outdoor recreation that varies depending on which part of the state you are located, writes Jennifer West on Quora. This scenic city in the Pacific Northwest wedged between Puget Sound and Lake Washington offers a vibrant arts/culture scene, famous restaurants, and an Osher Lifelong Learning Institute at the University of Washington. The Bankrate survey analyzed all 50 states for affordability, based on the cost of living index and the effective tax rate. HOW TO RETIRE WITH $1M ON A $50,000 SALARY. To determine the best states to retire, WalletHub examined a few key factors like affordability, health care . There are above-average doctors per capita and good air quality. If youre looking for retirement-age friends, youll have a good chance of finding them in this state where 21 percent of the population is age 65 and older. As far as entertainment goes, New York has the most museums per capita and, along with California and Minnesota, the most theaters per capita. Montana ranks relatively well for its quality of life and affordability. 4. Delaware 5. Colorado 49. Here are the 25 greatest states to retire in 2022, ranked from average to best. Another downside: a higher-than-average serious crime rate. Maryland not only has an income tax, but were also one of only seven states that has an estate tax. 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. Tampa, FL 7. editorial integrity, North Dakota 7. Delaware also has a major perk of being close to Washington, D.C. so you can have a calm weekend or a rocking one out on the town. The highly walkable downtown (elevation: 1,950 feet) is set in a comfortable climate with little snow, good air quality, a low serious crime rate and a high number of doctors per capita. Generally, states without any income taxes may seem . That number is higher in states like Connecticut, where the average person has a retirement balance of roughly $520,000. We placed the heaviest weighting on affordability. 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. There is also a state estate tax. Bankrate looked at several public and private datasets related to the life of a retiree. Social Security benefits are exempt and theres no state estate tax. And of course, there are the beaches! All Rights Reserved. Theres a wide variety of outdoor activities available on water and on land, including some 54 area golf courses. These are the top 10 states that retirees are moving to: 1. . Check out WalletHub's 10 best states for retirement to get the most out of your golden years: 1. According to the report, South Dakota has the highest percentage of the workforce age 65 and older, while West Virginia has the lowest. The whole place was practically built for snowbirds and retirees, says bicyclemom on Reddit. There are five national parks within Utah alone (and another three nearby). Alaska Best Places For Tax-Friendly Social Security Treatment This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. If you want a small retirement place, $100K will get you a nice two-bedroom ranch that is driving distance from an NFL stadium and an airport, writes resident Don Torrez on Quora. Believe it or not, you will find some of the finest cuisine in Vermont. Boulder itself is very walkable and bikeable with a low serious crime rate, good air quality and abundant doctors. 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. To help Americans find the best cities to spend their golden years, WalletHub compared the retirement-friendliness of 182 cities including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state across four key dimensions: 1) Affordability, 2) Activities, 3) Quality of Life and 4) Health Care. WalletHub has released a list of the best states in the country to retire in for 2022. Look at how youre going to spend your money, too. The Sunshine State also has the second-highest percentage of residents 65 years and older, WalletHub says, topped only by Maine. Florida ranks No. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Sarasota has a relatively high (but not very high) risk of natural hazards according to FEMA. Sponsored: Add $1.7 million to your retirement. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Heres the thing: Retiring in Connecticut will cost you an arm and a leg but if you have the funds tucked away, youll enjoy excellent health care and low crime rates. The Villages in Florida is one of the largest retirement communities in the U.S. (iStock). South Dakota. There is no state estate tax. Hiking and outdoor activities are all big, we have lots of trails for ATV and biking. We are surrounded by mountains, forests, rivers, lakes, the whole shebang Overall cost of living is pretty low here, although property values in Laramie are higher here than some other parts of the state.. 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. Elevation is 140 feet. Top criteria include the happiness of local residents, housing affordability, tax rates and health care quality. Gainesville has a moderate rating on the FEMA National Risk Index, especially favorable compared with some other Florida locations. The city is both highly walkable and bikeable and gets high marks for volunteering. Naples, Florida. Its kind of a mix of small town/big town. If you own a paid-off home in a high-cost area like Boston or San Francisco, maybe affordability isnt a priority for you. Elevation of 2,100 feet makes most summers non-sweltering. Daytona Beach, FL 4. The city is very bikeable, but not so walkable. With 120 nearby wineries, this quaint rural town 260 miles southeast of Seattle, boasts a surprisingly robust fine dining scene. The city boasts a high number of physicians per capita, good air quality and high marks for volunteering. All forms of retirement income get taxed in the Nutmeg State, but some seniors could be exempt from paying taxes on their Social Security. Idaho is gorgeous. 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. I have a 2,400-square-foot, four-bedroom, three-bathroom, all-brick house sitting on 1.25 acres. The town is bikeable but not all that walkable and has a low natural hazard risk. 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. More: How to get your retirement plan back on track. The state ranks relatively well for quality of life and WalletHub reports that it has one of the lowest numbers of elder abuse complaints in the nation. Hunting and fishing are obviously popular. The restaurant scene is robust. The top five states to retire to in 2023 are Ohio, Iowa, Minnesota, Florida, and Nebraska. Quaintly historic coastal city offers fine dining, a big arts scene, outdoor water activities and golf (with 39 courses in the area). The serious crime rate is above the national average. Its considered relatively tax friendly for retirees, with Social Security benefits fully exempt from the state income tax. I semi-retired in Charleston five years ago after working full-time here since 2011. 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. Its hard to make a blanket statement. 5. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Massachusetts and Maryland are more expensive in these categories, according to the report, while Hawaii and New Mexico are less expensive, with some costs nearly 50% lower. Oklahoma. We do not include the universe of companies or financial offers that may be available to you. FEMA rates Portland as having a relatively low natural hazard risk. 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. Fort. We will examine some states that are less expensive, tha. Nevada. The city is very walkable and bikeable. As it turns out, Ashland and the two other finalists in the Griffiths' search, Santa Fe, N.M., and Boulder, Colo., all earned spots on Forbes' new list of the 25 Best Places To Enjoy Your. Seattle has a relatively high (but not very high) natural hazard risk. The Beehive States sweet spot lies in its moderate weather, low property and sales taxes and abundance of outdoor activities. Louisiana. 3. 1 spot as the most affordable state to retire in . What is the number 1 retirement state? 1. A confusing state income tax structure tops out at 4.5% on high earners but is scheduled to drop to 2.5% in future years. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. ), Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access ), Experts: How to pick your best state to retire, Full results: How your state ranks for retirement. Newport and Providence are popular cities in the state and they both have their merits, Newport is awesome if you're rich or love to sail, Providence has lots of art and music and really good food, writes one Redditor. Here are the Global Retirement Index's top-10 retirement destinations for 2022. MONEY CHECKLIST FOR PEOPLE AGED 50 AND OLDER. WalletHub published a report on Monday that found the best U.S. states to retire in 2022. editorial policy, so you can trust that our content is honest and accurate. The Kansas Bureau of Investigation says there were almost 73,500 property crimes reported in the state in 2020, and violent crime reports increased by 9.3% from the previous year. But there is no state income tax on Social Security earnings and theres no state estate tax. However, you will need to contend with high property taxes and an inheritance tax, and your retirement income wont be exempt from taxation either. Best places to retire. The city is extremely walkable and famously bikeable. 2023 Bankrate, LLC. Laramie is nice, small and quiet but still large enough to have basic amenities and then some. Do these seven things now. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. We acknowledge theres plenty of subjectivity in choosing a place to live in retirement. Naples has good weather and air quality, an adequate number of physicians per capita and a very low serious crime rate. Score fresh maple syrup and ski down snowy slopes in the Green Mountain State, renowned across the country for its natural splendor. 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. !function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script"),d=o[0],r=/^http:/.test(e.location)? 10. 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. But there is no state income tax on Social Security benefits and no state estate tax. This energetic historic coastal state capital can feed a variety of passions, particularly lifelong learning, given its more than 50 area colleges. Our editorial team does not receive direct compensation from our advertisers. Retirees may want to take a gamble on living in Nevada. A Red Ventures company. 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. Check out what's clicking on FoxBusiness.com. Wisconsin is considered moderately tax friendly for retirees since Social Security is exempt, but any withdrawals from your retirement accounts will get taxed. 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. A low cost of living is a priority for some, while being close to family takes precedence for others regardless of the cost. I save money spending $2,633/month living in South Africa, How this 39-year-old earns $26,000 a year in California. But Social Security benefits are exempt and theres no state estate tax. Alaska, on the other hand, held last place in our ranking. [Fargo is] a cool place to live if you're into outdoors-related things. According to Bankrate's study, the best state to retire in the US is Georgia. Thats why a number of otherwise appealing choices, including New York City, didnt make the cut. The city is very bikeable and somewhat walkable. Virginia #4. Should you settle down by the beach or in the mountains? Join here. Texas 6. I could go on and on about Hen of the Wood (Bernie Sanderss favorite place to eat), Caf Provence in Brandon, Pho Hong in Burlington, Superfresh! Some of the street scenes of the homeless can be daunting, but this hilly, scenic city offers much in the way of arts/culture, fine dining (dozens of Michelin-starred restaurants) and outdoor land and water activities. Louisiana T-3. Asheville is at moderate risk for natural hazards. Make sure its really as affordable as you thought. Kelly Miller, AARP, Updated January 2011 . Wyoming. The Most Tax-Friendly States to Retire originally appeared on usnews.com. This center of tart cherry production 250 miles northwest of Detroit is near the famous Interlochen Center for the Arts, which hosts hundreds of yearly music performances. Extensive outdoor activities include hiking, climbing, biking and fishing. 2. Elevation is 50 feet. Other pluses include a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. Other popular retirement states. What drew them to Ashland was the Oregon Shakespeare Festival, which stages nine months a year of productions ranging from the Tempest to modern musicals and is located just 300 yards from their home. North Carolina 4. Connect with a financial planner today. Maine is known for its outdoor recreation activities, and Portland is an excellent place for retirees who enjoy fishing, kayaking, and other outdoor pursuits. So it's generally peaceful and quiet, comments resident Haley Rose on Quora. Fayetteville has a moderate natural hazard risk, but the serious crime rate is above the national average. Also only 45 minutes away from Cheyenne or Ft. Collins, recommends one Redditor. Florida Affordability rank: 4 Quality of life rank: 5 Healthcare rank: 27 Condominiums along. 40. Coeur dAlene has a high number of physicians per capita, good air quality, and a low serious crime rate. Serious crime rate is higher than national average. Maine (20.6%) Florida (20.5%) West Virginia (19.9%) Vermont (19.4%) Montana (18.7%) Delaware (18.7%) Best Overall State for Retiring Now, let's compare. That means high living costs or taxes arent in themselves disqualifiersthough notably, more than a fourth of our picks have housing costs near or below the current national median of $404,000. But a lot of areas are definitely living at a slow pace, writes APtop2015 on Reddit. Decide whats truly worth it while picking out a place for your golden years. Just watch out for high housing costs, if youre buying property in the Sunshine State, and the occasional alligator. 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. How much should you contribute to your 401(k)? The Palmetto States lush shoreline and mild climate lure plenty of retirees looking for a warm place to relax and unwind. Elevation is 950 feet. Every year, new data is released on which states are the best for a retiree to reside in, factoring in metrics like affordability, health care, quality of life, crime and weather. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. The city is very bikeable, although not very walkable. It's not easy deciding where you'll spend what will hopefully be some of the most relaxing years of your life. We have culture. At an elevation of 40 feet, Annapolis is also a somewhat walkable and very bikeable town with good air quality, and a surprisingly low natural hazards risk. A stiff 7% state income tax kicks in at $16,040 of taxable income, but there is no state income tax on Social Security earnings and theres a state income tax break for pension income. There are several compelling reasons to make a long distance move in retirement: to be closer to family, to cut costs, to enjoy better weather. Housing is relatively cheap and Zillow places the median home value in the state at just around $225,500.