I have a 2,400-square-foot, four-bedroom, three-bathroom, all-brick house sitting on 1.25 acres. The city is very walkable and bikeable. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The Hawkeye State gets major points for health care and cheap housing. 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! 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. Retirees may want to take a gamble on living in Nevada. The state income tax rate is a flat 4.99% for 2022, but Social Security income is exempt and theres no state estate tax. Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. It's not easy deciding where you'll spend what will hopefully be some of the most relaxing years of your life. Austin is very bikeable and somewhat walkable. Tired of living in an overcrowded metropolis? "Nevada is a tax-friendly state, making it ideal for many retirees. This energetic historic coastal state capital can feed a variety of passions, particularly lifelong learning, given its more than 50 area colleges. Montana ranks relatively well for its quality of life and affordability. En espaol | Choosing where to live after retirement is a huge decision and a very personal one. 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.. Nevada. Midwestern and Northeastern states top the list, while some warmer states that might seem appealing for retirement, such as Hawaii and California, rank lower. 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. How much should you contribute to your 401(k)? (iStock). The states cost of living has been rising, although the tax burden remains light. If you like the outdoors, youll find near world-class hiking, skiing, mountain biking, hunting, ATV riding, fishing, photography, backcountry flying, boating, bird watching, I could go on.. Indiana. As far as entertainment goes, New York has the most museums per capita and, along with California and Minnesota, the most theaters per capita. Information and timely news from our team of trusted money specialists. Alaska did rank first in one subcategory its residents bear the nations lowest tax burden. No other states surpass their density of residents over the age of 65. Home prices have shattered one record after another since the COVID pandemic began, and inflation rocked the U.S. economy in 2022. Get advice on your investment portfolio from a certified professional through Datalign. process and giving people confidence in which actions to take next. North Carolina 4. I lived in downtown Charleston for nine years and enjoyed walking to restaurants, bars, theater, the Spoleto Festival and other parts of Charleston. New Hampshire boasts picturesque towns, mountains and trails perfect for an outdoorsy retiree who prefers a quieter kind of life. You wont get taxed on your Social Security benefits, but any retirement income from your pension or other accounts are fair game. Datalign matches you with vetted registered advisors that can help you improve your investment portfolio and grow your retirement savings safely. 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. Best places to retire. Our experts have been helping you master your money for over four decades. More: Is borrowing from a 401(k) a bad idea? Affordability was once a big selling point for Florida retirees, but that advantage is fading. FAQ - New Privacy Policy. Seattle has a relatively high (but not very high) natural hazard risk. Iowa is an underrated state, which means it is far from crowded. Which certificate of deposit account is best? Toughest States for Retirees. Even though Texas and Florida have no income tax, they do have higher homeowners insurance costs because of hurricanes. The Treasure State features stunning vistas and clear-blue lakes and its one of the least populated states in the country. 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. According to Bankrate's study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. For me, I enjoy the outdoors and am heavily involved in equestrian things so the low price for land is perfect. A maximum score of 150 was possible. 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. Boulder has a favorable relatively low risk for natural hazards. Should you settle down by the beach or in the mountains? 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 Best States To Retire In. Brian Beers is the managing editor for the Wealth team at Bankrate. New York #3. Mutual Fund and ETF data provided byRefinitiv Lipper. Of the 12 states that do tax social security income, many of them include some provisions for excluding a portion of the social security income. Our choices span all four continental time zones and 16 states. 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. Our methodology: Our editors considered a variety of factors including each state's retirement rankings from WalletHub, MoneyRates and The Motley Fool to create our proprietary index. All forms of retirement income get taxed in the Nutmeg State, but some seniors could be exempt from paying taxes on their Social Security. Elevation is 3 feet. When youre still working, take some time to go preview different types of communities and different types of lifestyles. Check out the Mammoth Cave National Park and go hiking in the Red River Gorge area if youre interested in an outdoor adventure. Florida ranks No. It bristles with dozens of art galleries, fine restaurants and museums, plus world-class skiing and other outdoor land activities. 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. Florida was at the top of the list. Plus, theres a solid volunteering culture. Aside from its overall ranking, WalletHub also found how different states ranked within a few of those 47 measurements. Yet, Delaware ranks second in best states to retire and the data supports it. If you like a warm climate, Florida has the second-hottest average temperatures, right behind Hawaii. Pursuits at an elevation of 3,600 feet around the north-flowing Deschutes River include downhill and cross-country skiing, fishing, tubing, hiking, rock climbing, bicycling, paragliding and, except in the dead of winter, golf on nearly two dozen nearby courses. West Virginia. 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. The city is somewhat bikeable, although not all that walkable. Plenty of golf courses, if that's for you. 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. 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. A downside: The serious crime rate is above the national average. With an elevation of 50 feet, the city is very walkable and bikeable. There are adequate physicians per capita and good air quality. PA is a fine place for birding Hawk Mountain for raptors, and Middle Creek Refuge for geese saw 20,000 snow geese there last February. Housing is relatively cheap and Zillow places the median home value in the state at just around $225,500. We pay an extra $500 per month. Minnesota #5. in Brattleboro, Marys at the Inn at Baldwin Creek in Bristol, The New American Grill in Londonderry. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey. Indiana. Retirement savings cheat sheet: A quick contribution guide for 2023 . Alaska, on the other hand, held last place in our ranking. Sponsored: Add $1.7 million to your retirement. Bankrate follows a strict editorial policy, GET FOX BUSINESS ON THE GO BY CLICKING HERE. 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. 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. Weve got the normal entertainment youd find everywhere and we get pretty decent Broadway tours if youre into that. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. 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. 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. There is also a state estate tax. Maryland #4. It ranked within the top 15 states for the lowest rates of identity theft, fraud, and violent crime. Taxes This is a big consideration throughout our lives, but when incomes decrease in retirement, it can become a huge factor. One downside: a serious crime rate above the national average. Some say the grass really is greener in the Bluegrass State which offers plenty of perks aside from horses and fine bourbon. A recent Vanguard study revealed a self-managed $500,000 investment grows into an average $1.7 million in 25 years. Its hard to make a blanket statement. Our editorial team does not receive direct compensation from our advertisers. The city is pretty walkable and bikeable. Melbourne, FL 5. The state was dragged down by back-of-the-pack scores in affordability and weather. Diversity scores used the Census racial and ethnic diversity index and LGBTQ population densities compiled by the Movement Advancement Project. You may opt-out by. Colorado #5. 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. More: Jump-start your retirement plan. Wyoming. 4. 3. Maine's summer is made for retired people. My mortgage is $1,149 per month with everything included. If you own a paid-off home in a high-cost area like Boston or San Francisco, maybe affordability isnt a priority for you. 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. Portugal has become one of the most popular retirement destinations in recent years for Europeans and others from around the world. 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. Most are good for multiple passions, and oneAustin, Tex.hits all seven. 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. . But Social Security benefits are exempt and theres no state estate tax. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. HOW TO RETIRE WITH $1M ON A $50,000 SALARY. Worst State: 2x Difference Alabama vs. Hawaii Annual Cost of In-Home Services Lowest 1. This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. This material may not be published, broadcast, rewritten, or redistributed. Elevation is 50 feet. Still, on average, people across the U.S. have roughly $400,000 dollars to nest on. 1. 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. Theres a wide variety of outdoor activities available on water and on land, including some 54 area golf courses. West Virginia has the fewest museums per capita, while Mississippi has the fewest theaters per capita. 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. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. On Monday, WalletHub published a report that found the best U.S. states to retire in in 2022. It only takes 3 minutes to connect with an advisor who puts you first. There is a high ratio of doctors per capita, good air quality and a low serious crime rate. The winters are rainy but surprisingly temperate given the northern latitude. Wyoming #10. The state topped our ranking of culture and diversity. This is a BETA experience. Among the downsides: Austin has a relatively high (but not very high) risk for natural hazards and a serious crime rate above the national average. The Pine Tree State boasts beautiful beaches, an abundance of green spaces and some delightful lobster shacks. Naples, Florida. FEMA rates Tampa as having a relatively high (but not very high) natural hazard risk. The end of your career also raises new questions about where and how to spend your days now that youre no longer tied to a specific location. Take our 3 minute quiz and match with an advisor today. 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. They've built it up over the course of a few generations since air conditioning became a thing. Look at how youre going to spend your money, too. Sarasota, FL 2. Here are the 25 greatest states to retire in 2022, ranked from average to best. 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. 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. Arts/culture and fine dining are considered tops and there are ample opportunities for outdoor water and land activities.