This Is the Best State for Retirement in 2022 - InsideHook This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. This energetic historic coastal state capital can feed a variety of passions, particularly lifelong learning, given its more than 50 area colleges. Property and sales taxes are relatively low and Social Security benefits dont get taxed at all. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey. According to The Motley Fool, housing comes relatively cheap in the state and the weathers pretty decent, with mild winters and warm summers. [Fargo is] a cool place to live if you're into outdoors-related things. 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. For example, WalletHub found that Mississippi has the lowest adjusted cost of living, while Hawaii has the highest. Florida has no state income or estate tax. Lancaster, PA 6. A city with a large infrastructure for retirees, Gainesville has abundant doctors and good air quality. I googled this and got a completely different list for 2022: Florida North Carolina Michigan Arizona Georgia Pennsylvania Washington Indiana Texas Virginia . What to do when you lose your 401(k) match, Home prices have shattered one record after another, Are you planning to retire in 2022? Louisiana. 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. The weather is great, with an average temperature of 70 degrees. 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 . Tallahassee, Florida, is pictured. 5. Utah ranks relatively well for its health care, and its crime rate is lower than average. Beantown's about a 45-minute drive south. Downsides: Winters are cold and the serious crime rate is above the national average. We offer large metropolitan areas and beautiful countrysides. All rights reserved. Most of the state is exceptionally friendly and welcoming, writes resident Martin Mann on Quora. 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. Alaska, on the other hand, held last place in our ranking. Alabama #7. While property taxes are relatively high, the median home value is just around $180,000, according to Zillow. The city is very bikeable, although not very walkable. One downside: a serious crime rate above the national average. FEMA rates Tampa as having a relatively high (but not very high) natural hazard risk. Montana ranks relatively well for its quality of life and affordability. If you want to be warm all the time and play golf all year round, then this isnt the place to come, says resident Debbi Fuller on Quora. 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. But under the care of a pro, the . Virginia is tax friendly for retirees and offers a wealth of green spaces and beaches whats not to love? Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Aside from its overall ranking, WalletHub also found how different states ranked within a few of those 47 measurements. There are above-average doctors per capita and good air quality. Generally, states without any income taxes may seem . As a result, many retirees are looking for ways to stretch their savings. The restaurant scene is robust. Tampa, FL 7. We have culture. Another: The state has both an inheritance and estate tax and the combined state and county income tax rate tops 8%, although Social Security benefits and $34,300 per person in pension payments and 401(k) withdrawals are exempt. 1 on its list for housing costs. Elevation is 60 feet. New Hampshire boasts picturesque towns, mountains and trails perfect for an outdoorsy retiree who prefers a quieter kind of life. The city is pretty walkable and bikeable. Maine is known for its outdoor recreation activities, and Portland is an excellent place for retirees who enjoy fishing, kayaking, and other outdoor pursuits. Weve got the normal entertainment youd find everywhere and we get pretty decent Broadway tours if youre into that. We value your trust. Bankrate follows a strict 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. The Yellowhammer State ranks poorly for quality of life and health care, but if youre just looking for a state thats inexpensive to live in, youve come to the right place. The city is very walkable and bikeable. We placed the heaviest weighting on affordability. More: How to get your retirement plan back on track. Missouri ranks below average for health care and crime, but its quite affordable to live in, thanks to cheap housing costs. However, property and sales taxes tend to be higher than average. Top States Retirees are Moving to in 2023 (World According to Briggs Despite getting some bad press, Oregons largest city has a lot going for it. Eagle, Idaho Don Johnson Arrowrock Photography / Courtesy City of Eagle Population: 31,880 Population 50+: 41% Days of sunshine a year: 209 Median home price: $544,185 This picturesque Boise suburb is perfect for those looking for an active retirement. 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. Mutual Fund and ETF data provided byRefinitiv Lipper. There is a high rate of volunteering. 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. However, you will need to contend with high property taxes and an inheritance tax, and your retirement income wont be exempt from taxation either. Georgia ranks fifth-warmest state, meaning retirees have more days to enjoy the great outdoors. process and giving people confidence in which actions to take next. At an elevation of 20 feet, Charleston is moderately walkable and very bikeable. My property tax is $600 per year, writes resident Christopher Finch on Quora. ), Experts: How to pick your best state to retire, Full results: How your state ranks for retirement. At an elevation of 600 feet, Traverse City has a very low natural hazard risk, according to FEMA. 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. Information and timely news from our team of trusted money specialists. But there is no state income tax on Social Security benefits and no state estate tax. Thats the second-largest share of 65+ folks of any state, Census data shows. Weve maintained this reputation for over four decades by demystifying the financial decision-making Some states offer tax breaks on retirement income. By Kirk Miller. The 10 Best Affordable Places To Retire, 2022 Edition - realtor.com Its considered relatively tax friendly for retirees, with Social Security benefits fully exempt from the state income tax. 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. Cheap gas, amazing meat for amazing prices, plenty of open sky. What a $1 million nest egg looks like in today's America . Another downside: Serious crime is above the national average. If you like a warm climate, Florida has the second-hottest average temperatures, right behind Hawaii. The state income tax rate for most couples is 4.9% on taxable income that includes Social Security benefits, but tops out at 5.9% for couples with taxable income above $315,000. Best State vs. Tennessee #9. But a lot of areas are definitely living at a slow pace, writes APtop2015 on Reddit. 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. Extensive outdoor activities include hiking, climbing, biking and fishing. Iowa offers a lower cost of living, better healthcare, and lower home prices, making it safe and affordable. Another downside: a higher-than-average serious crime rate. There is a low serious crime rate, a very high ratio of doctors per capita and good air quality. Santa Fe has a favorable moderate natural hazard risk rating from FEMA. Drive 45 minutes and youll have something completely different, writes Boise resident Matt Roderick on Quora. The state topped our ranking of culture and diversity. 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. Other pluses include a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. 10 best places to retire in 2022 | World Economic Forum 2022 - Topretirements 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. South Dakota. Florida Affordability rank: 4 Quality of life rank: 5 Healthcare rank: 27 Condominiums along. Other popular retirement states. You can read more about our data sources and selection methodology and how the Griffiths found their retirement bliss, here. 2023 Best & Worst States for Retirement | Retirement Living Melbourne, FL 5. MONEY CHECKLIST FOR PEOPLE AGED 50 AND OLDER. Winters can be cold. There will be a few hot and humid days, but not six months of it as there is down South. Here are the 25 greatest states to retire in 2022, ranked from average to best. A range of lifestyles and living costs are on offer, including ranches and farms in . 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. 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. Up Next. More: Jump-start your retirement plan. 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. Delaware 5. We do take into account a variety of quality-of-life metrics, ranging from air quality and availability of doctors to the crime rate and a towns walkability. 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. Make sure its really as affordable as you thought. 10 Tax Breaks for People Over 50. Michael S. Fischer. Montana 8.. You'll pay no regular or retirement income tax, and Nevada property taxes are low," RetirementLiving.com says. The whole place was practically built for snowbirds and retirees, says bicyclemom on Reddit. Just watch out for high housing costs, if youre buying property in the Sunshine State, and the occasional alligator. The content provided on Moneywise is information to help users become financially literate. One factor we now consider disqualifying is a very high susceptibility to climate change and natural hazards as measured by the Federal Emergency Management Agencys new National Risk Index, which looks at 18 natural hazard risks, plus communities preparation for and ability to cope with them. Washington. Distilleries and breweries are good too if you like to drink! writes Redditor BlackRoseRedApple. The . BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access. To that end, Forbes has identified 25 top places to follow seven leisure interests in retirement: arts/culture, fine dining, lifelong learning, volunteering, outdoor activities on water, outdoor activities on land, and a special subset, golf. Florida has a lot of infrastructure for older folks health care, lots of gated adult communities, golf courses. See the gallery for the 15 best states for retirement, according to WalletHub. According to Bankrate's study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. There are five national parks within Utah alone (and another three nearby). 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. Decide whats truly worth it while picking out a place for your golden years. 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. The Best States to Retire in 2022 - Your AAA Network 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. 10 Best States For Retirement #1. You wont have to pay taxes on your Social Security benefits and you can claim a deduction on other types of retirement income. Arts/culture and fine dining are considered tops and there are ample opportunities for outdoor water and land activities. 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. 2023 FOX News Network, LLC. But this compensation does not influence the information we publish, or the reviews that you see on this site. The worst state in the U.S. for retirement is New Jersey, followed by Mississippi and New York, based on WalletHub's findings. WalletHub published a report on Monday that found the best U.S. states to retire in 2022. 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. 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. Considering a retirement move? There is also a state estate tax. With an elevation of 50 feet, the city is very walkable and bikeable. Retirement often brings a slower pace of life. Also only 45 minutes away from Cheyenne or Ft. Collins, recommends one Redditor. He oversees editorial coverage of banking, investing, the economy and all things money. Situated between Brazil and Argentina, Uruguay is a Spanish-speaking nation of around 3.5 million people, with warm summers and mild winters. As noted above, the best state to retire in will depend on an individual or couple's budget, lifestyle, and values. Kelly Miller, AARP, Updated January 2011 . 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. An additional 21 states don't tax military retirement pay but do have state personal income tax, which is why you might consider them the best tax-friendly states for military retirees. Melbourne, Florida. 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! Alabama T-3. Thousands benefit from our email every week. Plus, theres a solid volunteering culture. in Brattleboro, Marys at the Inn at Baldwin Creek in Bristol, The New American Grill in Londonderry. Maryland #4. Lake Cumberland is lots of fun for a weekend getaway. A Division of NBC Universal, Jeffrey Greenberg | Universal Images Group | Getty Images. So, whether youre reading an article or a review, you can trust that youre getting credible and dependable information. Elevation is 560 feet. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. But theres no estate tax or tax on Social Security benefits and theres an income tax break for pension income. 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. Tennessee. What are index funds and how do they work? We pay an extra $500 per month. Move over, Florida. The College of Charleston exempts senior citizens from tuition. 4. Cheap housing costs, low crime rates and low taxes attract plenty of retirees to Kentucky. By Liz Brumer-Smith - Feb 23, 2022 at 7:00AM Key Points. Minnesota Best State vs. The state was dragged down by back-of-the-pack scores in affordability and weather. 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. The Old Dominion State ranks relatively well for quality of life and safety, and residents here experience relatively mild winters. Wisconsin offers cheaper housing costs and a relatively low crime rate. Florida came in first in the overall ranking. Texas. South Carolina 5. Florida was at the top of the list. 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. That's a good thing, as the Peach State has over 350 golf courses, plus many parks, lakes, and rivers. Tampa, Florida. Wisconsin is considered moderately tax friendly for retirees since Social Security is exempt, but any withdrawals from your retirement accounts will get taxed. Elevation of 2,100 feet makes most summers non-sweltering. The island is somewhat bikeable but not all that walkable. And the worst states to retire in are: Alaska. Midwestern states scored well in our ranking for affordability, healthcare, and safety, leading to. Yet, Delaware ranks second in best states to retire and the data supports it. Homebuyers are paying nearly 50% more on their mortgage bill than last year. Which States Are the Best for Retirees? - The Balance The city boasts a high number of physicians per capita, good air quality and high marks for volunteering. The states crime rate is also fairly low, according to The Motley Fool. Best States to Retire: Top 22 Most Tax Friendly States for Retirees For example, WalletHub ranked Virginia as the best state to retire in its 2023 study, followed by Florida, Colorado, Wyoming, and Delaware. The state was dragged down by back-of-the-pack scores in affordability and weather. Alaska, on the other hand, held last place in our. While health care is quite costly, WalletHub ranks Connecticut highly for its access and outcomes the state has one of the largest numbers of physicians per capita and the third lowest heart disease rates in the country. 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. After a lifetime of hard work, two-plus years of dealing with COVID-19, and the . City is very bikeable but not so walkable. Idaho 8. My mortgage is $1,149 per month with everything included. Gainesville has a moderate rating on the FEMA National Risk Index, especially favorable compared with some other Florida locations. The Villages in Florida is one of the largest retirement communities in the U.S. (iStock). Jeff Ostrowski covers mortgages and the housing market. Virginia #4. When youre still working, take some time to go preview different types of communities and different types of lifestyles. Elevation is 7,200 feet. The 10 Best Places to Retire in the U.S. in 2022: 1. Are your retirement savings on track? The Best States to Retire, Based on What People Really Want