But there's good news: As of early 2022, federally taxed Social Security income is officially deductible for those 65 and older. Elevation is 1,400 feet and air quality is good. Arizona 3. Pennsylvania3rd best state to retire in Also, ranking high on our list is Pennsylvania. Elevation is 950 feet. The Best States to Retire 1. I save money spending $2,633/month living in South Africa, How this 39-year-old earns $26,000 a year in California. At Bankrate we strive to help you make smarter financial decisions. Portugal has become one of the most popular retirement destinations in recent years for Europeans and others from around the world. After all, Americans 65 years and older spend an average of about seven hours a day on leisure and sports, compared to the five or fewer hours for those of prime working age. I semi-retired in Charleston five years ago after working full-time here since 2011. Information and timely news from our team of trusted money specialists. 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. But a lot of areas are definitely living at a slow pace, writes APtop2015 on Reddit. Gainesville has a moderate rating on the FEMA National Risk Index, especially favorable compared with some other Florida locations. Get matched with a financial advisor today at Datalign and get on the path to financial success. By comparison, the 2024 leave year won't begin for most employees until Sunday, Jan. 14, 2024 and the 2025 leave . Thousands benefit from our email every week. Elevation is 50 feet. FEMA rates Tampa as having a relatively high (but not very high) natural hazard risk. FEMA rates the natural hazard risk in Walla Walla as relatively low. Weve got the normal entertainment youd find everywhere and we get pretty decent Broadway tours if youre into that. No more sweating work deadlines, playing office politics or struggling to stay afloat in a city with a soul-crushing commute and a punitive cost of living. You may opt-out by. Plus they have a favorable income tax rate. Washington 50. Worst State: 2x Difference West Virginia vs. Minnesota 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. Property and sales taxes are low, and while youll get taxed on your Social Security or retirement income, you may be able to claim a deduction. Homebuyers are paying nearly 50% more on their mortgage bill than last year. 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. And the worst states to retire in are: Alaska. Our choices span all four continental time zones and 16 states. Surrounded by water, most notably the Chesapeake Bay, this quaint state capital 30 miles east of Washington, D.C., is a mecca for sailors, powerboaters, kayakers and fishermen, with about a dozen boating schools and a generally comfortable climate. Brian Beers is the managing editor for the Wealth team at Bankrate. The winters are rainy but surprisingly temperate given the northern latitude. Affordability was once a big selling point for Florida retirees, but that advantage is fading. There is a high ratio of doctors per capita, good air quality and a low serious crime rate. For me, I enjoy the outdoors and am heavily involved in equestrian things so the low price for land is perfect. Start Slideshow . Do you prefer golf or cross-country skiing? Oregon 47. Richmond has an amazing food and culture scene. Crime rates in the state sit relatively low as well. Nevada. The summers aren't too hot and long and the winters not too cold and long. Wisconsin offers cheaper housing costs and a relatively low crime rate. Sarasota has a relatively high (but not very high) risk of natural hazards according to FEMA. Wise up with top stories and timely tips Tuesdays and Thursdays. Believe it or not, you will find some of the finest cuisine in Vermont. 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. Laramie is nice, small and quiet but still large enough to have basic amenities and then some. This is due to a low cost of living and light tax burden for residents. Florida really may be the best state to retire in, according to a new report. Other popular retirement states. WalletHub has released a list of the best states in the country to retire in for 2022. 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. Despite an elevation of just 10 feet, Hilton Head has a moderate FEMA rating for natural hazard risk. Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. 5. The city boasts a high number of physicians per capita, good air quality and high marks for volunteering. The state is considered relatively safe to live in as well and The Motley Fool ranks it No. We have a ton of coastline and incredible seafood you'd pay a premium for right outside, you just have to dig it up! It also has one of the lowest crime rates across the country. 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. Not everyone can afford to live on fixed incomes as prices rise. Large enough for us and our dogs plus lots of room for company, writes Brian Trapp on Quora. We offer large metropolitan areas and beautiful countrysides. Serious crime rate is higher than national average. Lancaster, Pennsylvania. 10 Best States For Retirement #1. 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. But this compensation does not influence the information we publish, or the reviews that you see on this site. Indiana. Another good one is to pursue your avocational passions. HERE ARE THE BEST PLACES TO RETIRE IN FLORIDA. The Sunshine State also has the second-highest percentage of residents 65 years and older, WalletHub says, topped only by Maine. 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. Climate is warm but pleasant. WalletHub also considers it the best state for elder abuse protection, especially for its protection funding and eldercare organizations and services. Tennessee #9. 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. Just come prepared for the frigid winters and snowfall. If you retired in 2022 or are going to retire in 2023, find details below on which state you may consider retiring in if your main source of income is from Social Security retirement, . Alaska did rank first in one subcategory its residents bear the nations lowest tax burden. 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. Elevation is 300 feet. With 120 nearby wineries, this quaint rural town 260 miles southeast of Seattle, boasts a surprisingly robust fine dining scene. I googled this and got a completely different list for 2022: Florida North Carolina Michigan Arizona Georgia Pennsylvania Washington Indiana Texas Virginia . 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. Tired of living in an overcrowded metropolis? Sarasota, Florida. who ensure everything we publish is objective, accurate and trustworthy. Mutual Fund and ETF data provided byRefinitiv Lipper. We will examine some states that are less expensive, tha. Florida was at the top of the list. Maryland #4. If you own a paid-off home in a high-cost area like Boston or San Francisco, maybe affordability isnt a priority for you. 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. subject matter experts, The top state income tax rate (on taxable income over $39,700) is 5.5%, dropping to 5.3% next year. this post may contain references to products from our partners. Theres no state income tax on Social Security earnings, but there is a state estate tax. We will have it paid off in 18 years instead of 30, and save over $38,000 in interest. Iowa is an underrated state, which means it is far from crowded. Home prices have shattered one record after another since the COVID pandemic began, and inflation rocked the U.S. economy in 2022. These are the top 10 states that retirees are moving to: 1. We adhere to strict standards of editorial integrity to help you make decisions with confidence. Forbes says the city of Fargo has appeared on its Best Places to Retire list for 10 years in a row due to its cost of living, doctors per capita and walkability. On the other hand, Maryland is way below the cadre of ranking. Naples, Florida. Real estate comes pretty cheap in Indiana, plus property taxes dont amount to much either. By Liz Brumer-Smith - Feb 23, 2022 at 7:00AM Key Points. Debt isn't the enemy of a comfortable retirement, How to get your retirement plan back on track, Bolster your retirement portfolio with farmland, 17 million Americans are missing out on free money. Florida Affordability rank: 4 Quality of life rank: 5 Healthcare rank: 27 Condominiums along. Florida has no state income or estate tax. Meanwhile, Florida was found to have the highest percentage of the population age 65 and older, while Utah was found to have the lowest. Florida #2. We value your trust. But there is no state income tax on Social Security earnings and theres no state estate tax. Bankrates editorial team writes on behalf of YOU the reader. FEMA rates Portland as having a relatively low natural hazard risk. 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. When they were ready to retire, Karen and David Griffiths sold their Spanish-style Los Angeles home and moved 700 miles north to a 134-year-old Eastlake Victorian in Ashland, Ore., with 11-foot ceilings, bay windows, a covered porch and views of the surrounding mountains. It was a good fit for us, says David. 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. Here are the 25 greatest states to retire in 2022, ranked from average to best. 3. California is the worst state for retiring. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you like a warm climate, Florida has the second-hottest average temperatures, right behind Hawaii. Washington. New Hampshire T-45. However, the high incidence of hurricanes and tornadoes hurts Floridas weather ranking. Mostly summer weather is pleasant. Move over, Florida. Georgia is ranked high for being tax-friendly to retirees. The scenic city is very walkable and bikeable and has a high ratio of doctors per capita, plus good air quality. Even though Texas and Florida have no income tax, they do have higher homeowners insurance costs because of hurricanes. While property taxes are relatively high, the median home value is just around $180,000, according to Zillow. Kelly Miller, AARP, Updated January 2011 . As with Naples, hurricane exposure is real, but less than some other coastal towns. While everyone (young or old) seems to moving to Florida, it's still also the top state destination for retirees, according to a new report by WalletHub. Social Security income is tax-exempt, and most types of retirement income if your 62 or older. West Virginia has the most affordable housing in the United States. Here's an explanation for how we make money 40. Make sure its really as affordable as you thought. I have a 2,400-square-foot, four-bedroom, three-bathroom, all-brick house sitting on 1.25 acres. The Palmetto States lush shoreline and mild climate lure plenty of retirees looking for a warm place to relax and unwind. New Hampshire boasts picturesque towns, mountains and trails perfect for an outdoorsy retiree who prefers a quieter kind of life. Best places to retire. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Missouri #8. Kansas received middling scores for affordability and health care but watch out for its higher-than-average crime rates. According to Bankrate's study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. 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.. 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. Iowa offers a lower cost of living, better healthcare, and lower home prices, making it safe and affordable. Our goal is to give you the best advice to help you make smart personal finance decisions. Idaho 8. This New England state might not be the cheapest place to live in youll pay high property taxes and a 5% tax on interest and dividends greater than $2,400 however, it ranks well for quality of life and health care. 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. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. 1 on its list for housing costs. The content provided on MoneyWise is information to help users become financially literate. 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. Colorado 4. No other states surpass their density of residents over the age of 65. You can read more about our data sources and selection methodology and how the Griffiths found their retirement bliss, here. Florida has a lot of infrastructure for older folks health care, lots of gated adult communities, golf courses. Tampa, FL 7. Florida was at the top of the list. Lake Cumberland is lots of fun for a weekend getaway. Florida has no state income or estate tax. For wellness rankings, Bankrate used the Sharecare Community Well-Being Index released in July 2022. Nevada. Housing costs are on the cheaper end as well. Idahos graduated state income tax rate hits a top rate of 6% at just $15,878 of income for married couples. What Are The best states to retire in 2022? Elevation is 60 feet. Florida. Other pluses include a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. 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. Beautiful state parks too. Another downside: a serious crime rate above the national average. 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. 10. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Idaho Idaho solidifies its ranking as a top retirement state by offering many tax breaks for seniors. Missouri ranks below average for health care and crime, but its quite affordable to live in, thanks to cheap housing costs. The Most Affordable Places to Retire. !function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script"),d=o[0],r=/^http:/.test(e.location)? Other times, they want to be closer to family. Oklahoma. Midwestern and Northeastern states top the list, while some warmer states that might seem appealing for retirement, such as Hawaii and California, rank lower. Its kind of a mix of small town/big town. 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! Melbourne, Florida. Plus, theres no state estate tax. A surprisingly mild climate in Idaho's capital city is conducive to outdoor activities, while Boise State University offers discounted tuition for seniors. 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. Minnesota Best State vs. FEMA rates the natural hazards risk as moderate, which is the middle 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. There is also a state estate tax. As a resident of Delaware who is looking to retire in five years, I can personally state that I will be retiring in the state of Delaware because it is centrally located between major cities and modes of transportation and the cost of living will work well with our retirement funds, writes Antionette Blake on Quora. However, it does have the lowest percentage of the population aged 65 or older in the U.S. and ranks poorly for elder abuse protections. This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. For example, WalletHub ranked Virginia as the best state to retire in its 2023 study, followed by Florida, Colorado, Wyoming, and Delaware. Drive 45 minutes and youll have something completely different, writes Boise resident Matt Roderick on Quora. Elevation is 2,200 feet. And the states strong economy means housing has only gotten more expensive as well, reports KSL News Radio. Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. I don't want to go to any state with excessive bugs or . 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. Utah ranks relatively well for its health care, and its crime rate is lower than average. Farmland is a highly intriguing choice for long-term investors. Seattle has a relatively high (but not very high) natural hazard risk. 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. 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. We have culture. 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. One downside: a serious crime rate above the national average. Georgia came out the winner, followed closely by Florida and Tennessee, in a list . 2023 FOX News Network, LLC. 10. Sarasota, FL 2. Quaintly historic coastal city offers fine dining, a big arts scene, outdoor water activities and golf (with 39 courses in the area). New Jersey #2. 6. Most of the state is exceptionally friendly and welcoming, writes resident Martin Mann on Quora. Located 285 miles south of Portland, this artsy outpost offers galleries, a vibrant restaurant scene and the acclaimed nine-month-a-year Oregon Shakespeare Festival, all set amid scenic mountains and forests. Boulder is also the home the University of Colorado, which nurtures a big arts/culture and fine dining scene and allows seniors to audit courses at minimal cost. Situated between Brazil and Argentina, Uruguay is a Spanish-speaking nation of around 3.5 million people, with warm summers and mild winters. All forms of retirement income get taxed in the Nutmeg State, but some seniors could be exempt from paying taxes on their Social Security. 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. 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. Uruguay. The 10 Best Places to Retire in the U.S. in 2022: 1. The state is expensive to live in and youll pay taxes on your retirement income, but Vermont gets lauded for its low crime rates and great health care. North Carolina. 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. The Pine Tree State boasts beautiful beaches, an abundance of green spaces and some delightful lobster shacks. 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. 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. Doctors are abundant. At an elevation of 20 feet, Charleston is moderately walkable and very bikeable. There is also a state estate tax. I can see Zion National Park from my backyard. 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. 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. Nevada 10. 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. This abandoned high school was converted into a 31-unit apartment building. There are above-average doctors per capita and good air quality. Idahos considered one of the safest states to live in, thanks to its low crime rate, and has one of the lowest average monthly health insurance premiums in the country, according to WalletHub. City is very bikeable but not so walkable. 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. The 10 Bestand Most AffordablePlaces To Retire in America, 2022 Edition. 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. Virginia 3. A city with a large infrastructure for retirees, Gainesville has abundant doctors and good air quality. Coeur dAlene has a high number of physicians per capita, good air quality, and a low serious crime rate. Legal Statement. 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. You wont have to pay taxes on your Social Security benefits and you can claim a deduction on other types of retirement income. For this study, Bankrate looked at five broad categories: affordability, wellness, culture, weather and crime. The city is very bikeable and somewhat walkable. WalletHub published a report on Monday that found the best U.S. states to retire in 2022. Minnesota #5. Datalign matches you with vetted registered advisors that can help you improve your investment portfolio and grow your retirement savings safely. My mortgage is $1,149 per month with everything included. The content provided on Moneywise is information to help users become financially literate. 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.. 18 in Bankrates affordability index. Naples, FL 3. Montana 8.. 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. editorial policy, so you can trust that our content is honest and accurate. That number is higher in states like Connecticut, where the average person has a retirement balance of roughly $520,000. Ashland is at moderate risk for natural hazards. There is no state income tax, but there is a stiff state estate tax. There is no state income tax, but there is a stiff state estate tax and a high sales tax. The weather is great, with an average temperature of 70 degrees. Florida ranks well, as it does. Alaska, on the other hand, held last place in our. California 48. Colorado #5. At an elevation of 600 feet, Traverse City has a very low natural hazard risk, according to FEMA. 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.