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. Other pluses include a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. 6. Heres what to do if you didnt get one, The worlds 10 richest people have all lost money since 2022 started except for Warren Buffett, Heres how much money Americans are aiming to save in 2022, Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. Housing is relatively cheap and Zillow places the median home value in the state at just around $225,500. Elevation is 50 feet. More: Is borrowing from a 401(k) a bad idea? We have a ton of coastline and incredible seafood you'd pay a premium for right outside, you just have to dig it up! 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. Minnesota Best State vs. 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. In minutes, you can connect with a local or remote advisor and get a free initial consultation. Florida #2. Minnesota #5. Wyoming. However, you will need to contend with high property taxes and an inheritance tax, and your retirement income wont be exempt from taxation either. The surrounding terrain is suitable for hiking and biking. The Sunshine State has long been a haven for retirees. The states low taxes and lack of crime make Wyoming sound rather idyllic. Zero down, 3.25%, 30-year fixed. There is a high rate of volunteering. You can read more about our data sources and selection methodology and how the Griffiths found their retirement bliss, here. New Hampshire boasts picturesque towns, mountains and trails perfect for an outdoorsy retiree who prefers a quieter kind of life. By Kirk Miller. 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. Believe it or not, you will find some of the finest cuisine in Vermont. There is also a state estate tax. Situated between Brazil and Argentina, Uruguay is a Spanish-speaking nation of around 3.5 million people, with warm summers and mild winters. Real estate comes pretty cheap in Indiana, plus property taxes dont amount to much either. Get matched with a financial advisor today at Datalign and get on the path to financial success. 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 . Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. With an elevation of 50 feet, the city is very walkable and bikeable. The worst state in the U.S. for retirement is New Jersey, followed by Mississippi and New York, based on WalletHub's findings. 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. Worst State: 2x Difference West Virginia vs. Minnesota 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. Lancaster, Pennsylvania. The scenic area has extensive parks and waterways conducive to hiking, fishing and boating, plus 21 golf courses. They've built it up over the course of a few generations since air conditioning became a thing. Florida. Get advice on your investment portfolio from a certified professional through Datalign. Affordability was once a big selling point for Florida retirees, but that advantage is fading. But there is no state income tax on Social Security earnings and theres no state estate tax. Colorado ranks fourth in the United Health Foundation's senior health rankings, with particularly high marks in clinical care and positive behaviors. Weve averaged three recent state rankings to create one master list. Among its health-related strengths, the state. I semi-retired in Charleston five years ago after working full-time here since 2011. Opinions expressed by Forbes Contributors are their own. The Villages in Florida is one of the largest retirement communities in the U.S. (iStock). The city is very bikeable, but not so walkable. There is no state estate tax. Elevation is 7,200 feet. Plus they have a favorable income tax rate. in Brattleboro, Marys at the Inn at Baldwin Creek in Bristol, The New American Grill in Londonderry. From dining out and travel to insurance and investments, discover how much an AARP membership can save you. 5 of the best states to retire in. To identify the best places to retire, U.S. News analyzed data for the 150 largest metropolitan areas in the U.S. to assess how well they meet Americans' retirement needs and expectations. Uruguay. [Fargo is] a cool place to live if you're into outdoors-related things. The content provided on MoneyWise is information to help users become financially literate. You'll pay no regular or retirement income tax, and Nevada property taxes are low," RetirementLiving.com says. FEMA ranks Boise relatively low in natural hazard risk. 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. Utah ranks relatively well for its health care, and its crime rate is lower than average. Alaska, on the other hand, held last place in our ranking. These are the most affordable states to retire to, based on the adjusted cost of living, tax friendliness and the cost of care services. 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. Meanwhile, for potential retirees seeking a cultural melting pot, Florida boasts solid racial diversity and a significant LGBTQ population. The restaurant scene is robust. North Dakota 7. Sarasota has a relatively high (but not very high) risk of natural hazards according to FEMA. A surprisingly mild climate in Idaho's capital city is conducive to outdoor activities, while Boise State University offers discounted tuition for seniors. Florida 2. According to Bankrate's study, the best state to retire in the US is Georgia. so you can trust that were putting your interests first. Florida has no state income or estate tax. Washington. Aimlockbelch on Quora recommends the local eateries in the state. Other downsides: San Franciscos serious crime rate is higher than the national average and it has a relatively high (but not very high) natural hazard risk, according to FEMA. 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. As with Naples, hurricane exposure is real, but less than some other coastal towns. 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. Heres advice from experts who help retirees and soon-to-be-retired workers through the decision: Laura Kovacs, former director of education at the Scottsdale Area Association of Realtors in Arizona and a recent retiree herself: Spend some time in places where you want to live before you commit to moving there. At an elevation of 20 feet, Charleston is moderately walkable and very bikeable. 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. This abandoned high school was converted into a 31-unit apartment building. this post may contain references to products from our partners. 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. The town is somewhat bikeable, but not all that walkable. Social Security benefits dont get taxed and seniors can claim a deduction of up to $12,000 a year against their other retirement income. Tallahassee, Florida, is pictured. Here are the 25 greatest states to retire in 2022, ranked from average to best. 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. New Hampshire T-45. For this study, Bankrate looked at five broad categories: affordability, wellness, culture, weather and crime. Virginia #4. Daytona Beach, Florida. !function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script"),d=o[0],r=/^http:/.test(e.location)? 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. Idaho Idaho solidifies its ranking as a top retirement state by offering many tax breaks for seniors. There is also a state estate tax. Getting older has its benefits. WalletHub says Vermont has one of the highest percentages of residents aged 65 and older living in the state, but also notes that many of them are in the workforce as well. Are you confident in your retirement savings? Louisiana. Look at how youre going to spend your money, too. It also has one of the lowest crime rates across the country. Its considered decently safe to live in and ranks above average for quality of life. 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. 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. Theres a wide variety of outdoor activities available on water and on land, including some 54 area golf courses. There's no better time to retire than 2022 when life expectancy is at its all-time high of 79.05 years.However, choosing the best states to retire from a list of 50 is no easy feat. And, of course, not everyone likes the sweltering summers of the Sun Belt states that populate the top of our rankings. 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. Idahos graduated state income tax rate hits a top rate of 6% at just $15,878 of income for married couples. Delaware #6. Perhaps most importantly, where do your kids, grandkids, friends and health care providers live? The states cost of living has been rising, although the tax burden remains light. FEMA rates Coeur dAlene as at a very low risk for natural hazards. Virginia's average combined state and local rate of 5.75% is the 11th-lowest in the nation. Nestled on Floridas Gulf Coast along Tampa Bay, this port city has a big restaurant scene, lots of water activities and 80 golf courses in the area. Tallahassee, Florida, is pictured. All Rights Reserved. The city is very bikeable, although not very walkable. Winters are cold. Elevation is 560 feet. Boulder has a favorable relatively low risk for natural hazards. 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! Maine's summer is made for retired people. By Sara Ventiera. For example, WalletHub found that Mississippi has the lowest adjusted cost of living, while Hawaii has the highest. The Most Affordable Places to Retire. I showed her around one community, and she fell in love with it., (Are you planning to retire in 2022? Flagstaff has a relatively high (but not very high) risk of natural hazards, according to FEMA. 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. I have to say, living in central VA, its nice being only two-ish hours from nice, usually calm beaches, and two-ish hours from gorgeous, rolling-green mountains. Nothing too crazy to worry about like earthquakes or hurricanes or dangerous wildlife, says DChristy87 on Reddit. 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 Connect with a financial planner today. City is very bikeable but not so walkable. The top state income tax rate (on taxable income over $39,700) is 5.5%, dropping to 5.3% next year. I have one client whos 83 [years old] who didnt want to live in an active adult community because she had pre-determined that it would be filled with old people. 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. Florida: Florida is a top retirement destination for many reasons. After a lifetime of hard work, two-plus years of dealing with COVID-19, and the . 1 on its list for housing costs. 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 Not to mention it's more of a suburban-based state. Time to head to the mountains! Oklahoma Bonsales / Shutterstock Average annual benefit in 2022: $19,393.40 In Oklahoma, 551,853 retirees are getting Social Security benefits in 2021 that average $1,526.08 a month, or $18,312.94 for the year. 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. 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. The town is bikeable but not all that walkable and has a low natural hazard risk. Taxes suck everywhere, but they're a fact of life. (iStock). 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. The scenic city is very walkable and bikeable and has a high ratio of doctors per capita, plus good air quality. Florida has a lot of infrastructure for older folks health care, lots of gated adult communities, golf courses. 10. The Most Tax-Friendly States to Retire originally appeared on usnews.com. If you like a warm climate, Florida has the second-hottest average temperatures, right behind Hawaii. Extensive outdoor activities include hiking, climbing, biking and fishing. Retirement savings cheat sheet: A quick contribution guide for 2023 . To see the overall ranking, here are the best states to retire in this year, according to WalletHub. Plenty of farms also, although they are increasingly larger and larger and run by fewer and fewer people, writes noshelter on Reddit. There is no state estate tax. Our experts have been helping you master your money for over four decades. Thats why a number of otherwise appealing choices, including New York City, didnt make the cut. However, Hawaii was found to have the highest life expectancy, while West Virginia was found to have the lowest. The Sunshine State also has the second-highest percentage of residents 65 years and older, WalletHub says, topped only by Maine. 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. There is no state income tax, but there is a stiff state estate tax and a high sales tax. 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. The Best States To Retire In. To calculate these rankings, we used 13 different metrics across three categories health, housing and quality of life pulled from publicly accessible databases to rank all 50 states. Oregon 9. Here's how the Secure Act 2.0 could help you get what you're owed. This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. Weve got the normal entertainment youd find everywhere and we get pretty decent Broadway tours if youre into that. 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. Oklahoma. Boston has good air quality and abundant doctors per capita. The Best States To Retire in 2022 As noted above, the best state to retire in will depend on an individual or couple's budget, lifestyle, and values. 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. See the gallery for the 15 best states for retirement, according to WalletHub. What are index funds and how do they work? With 120 nearby wineries, this quaint rural town 260 miles southeast of Seattle, boasts a surprisingly robust fine dining scene. He oversees editorial coverage of banking, investing, the economy and all things money. 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. It is freakin beautiful here! The Beehive States sweet spot lies in its moderate weather, low property and sales taxes and abundance of outdoor activities. And the states strong economy means housing has only gotten more expensive as well, reports KSL News Radio. Make sure its really as affordable as you thought. 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. Naples, Florida. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Mountains and water, including 25-mile-long Lake Coeur dAlene, make this city 300 miles east of Seattle a hot spot for fishing, boating, swimming, hiking and skiing. Theres no state income tax on Social Security earnings, but there is a state estate tax. Here are the 25 greatest states to retire in 2022, ranked from average to best. The city boasts a high number of physicians per capita, good air quality and high marks for volunteering. editorial policy, so you can trust that our content is honest and accurate. 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. 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. Another downside: a serious crime rate above the national average. 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.