Lake Cumberland is lots of fun for a weekend getaway. Zero down, 3.25%, 30-year fixed. 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. Plus they have a favorable income tax rate. Mississippi 5. 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. Theres a wide variety of outdoor activities available on water and on land, including some 54 area golf courses. The city is very bikeable, although not very walkable. But there's good news: As of early 2022, federally taxed Social Security income is officially deductible for those 65 and older. Elevation is 300 feet. WalletHub published a report on Monday that found the best U.S. states to retire in 2022. Santa Fe has a favorable moderate natural hazard risk rating from FEMA. 2. It's no surprise that money is such an important consideration when choosing the best place to spend your retirement years. Sponsored: Add $1.7 million to your retirement. Here are the 25 greatest states to retire in 2022, ranked from average to best. Home prices have shattered one record after another since the COVID pandemic began, and inflation rocked the U.S. economy in 2022. Aug 1, 2022. Legal Statement. Kelly Miller, AARP, Updated January 2011 . 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. It ranks slightly higher than average for its quality of life and crime rates, and WalletHub says it has one of the lowest complaints of elder abuse in the country. Homes and rent are expensive downtown, and people often look for a home or rental off the peninsula (the traditional city of Charleston), writes Patrick Jones on Quora. FAQ - New Privacy Policy. Flagstaff has a relatively high (but not very high) risk of natural hazards, according to FEMA. 02-24-2023, 10:08 PM E-Twist : 5,264 posts, read 3,199,303 times Reputation: 19973. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Extensive outdoor activities include hiking, climbing, biking and fishing. Arkansas Highest T-45. highly qualified professionals and edited by For those who do not mind colder winters, a lakeside community in a state like Michigan or Ohio can. Richmond has an amazing food and culture scene. Louisiana. Lancaster, PA 6. The median home value in the state is a meager $127,000, according to Zillow. Georgia, Michigan, Ohio and Missouri all made the top five best states for retirement. At Bankrate we strive to help you make smarter financial decisions. The four seasons include cold winters. And the worst states to retire in are: Alaska. Connecticut: 6.99% on incomes over $500,000 ($1 million for married filers of joint returns) Nebraska: 6.84% on income over $32,210 ($64,430 for married filers of joint returns) West Virginia: 6.5% on income over $60,000 (for both single filers and married filers of joint returns) 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. For wellness rankings, Bankrate used the Sharecare Community Well-Being Index released in July 2022. Should you settle down by the beach or in the mountains? With an elevation of 50 feet, the city is very walkable and bikeable. 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. It also has one of the lowest crime rates across the country. 2022's Best States for LGBTQ+ Retirees. Florida: Florida is a top retirement destination for many reasons. Virginia also has some of the best elder abuse protections across the U.S., particularly in terms of total expenditure. Yet, Delaware ranks second in best states to retire and the data supports it. 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. The state topped our ranking of culture and diversity. Taxes suck everywhere, but they're a fact of life. The city enjoys a higher number of doctors per capita and good air quality. And the states strong economy means housing has only gotten more expensive as well, reports KSL News Radio. 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. Ashland is at moderate risk for natural hazards. A Red Ventures company. 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. Decide whats truly worth it while picking out a place for your golden years. Boulder itself is very walkable and bikeable with a low serious crime rate, good air quality and abundant doctors. We offer large metropolitan areas and beautiful countrysides. There is no state estate tax. Elevation is 140 feet. 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. It ranked within the top 15 states for the lowest rates of identity theft, fraud, and violent crime. The city is very bikeable and somewhat walkable. The winters are rainy but surprisingly temperate given the northern latitude. HOW TO RETIRE WITH $1M ON A $50,000 SALARY. But recent trends may help point you in. Boulder has a favorable relatively low risk for natural hazards. . But theres no estate tax or tax on Social Security benefits and theres an income tax break for pension income. I can see Zion National Park from my backyard. Kansas received middling scores for affordability and health care but watch out for its higher-than-average crime rates. 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 Retirement. 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. Another: A 6.5% state income tax kicks in for couples at just $16,040 of taxable income. My mortgage is $1,149 per month with everything included. Are your retirement savings on track? The content provided on MoneyWise is information to help users become financially literate. Norfolk is up-and-coming with some amazing bars, and VB has the Oceanfront, which is a lot of fun day or night, says AquaKong35 on Reddit. By Sara Ventiera. 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. New York #3. Wisconsin is considered moderately tax friendly for retirees since Social Security is exempt, but any withdrawals from your retirement accounts will get taxed. Climate is warm but pleasant. There is no state estate tax. Gulf Coast resort 170 miles south of Tampa boasts 100 area golf courses, plus extensive shoreline for outdoor water pursuits and a big arts scene. And while youll have to contend with snow in the winter, Redditor linnane recommends the state for its summer climate. 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. Beantown's about a 45-minute drive south. If youre making $100,000 in retirement income and moving to a $400,000 house, its a different scenario than if youre making $1 million and moving to a $5 million house., Ginni Field, a real estate broker in Oceanside, California, who specializes in senior buyers and sellers and holds the National Association of Realtors Senior Real Estate Specialist designation: Sometimes, people just want to get out of the snow. Look at how youre going to spend your money, too. One downside: Charleston has a relatively high (but not very high) risk rating for natural hazards from FEMA. The southeast borders the Atlantic Ocean, and its Sea Islands like Hilton Head and Cumberland Island are top attractions. 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. But this compensation does not influence the information we publish, or the reviews that you see on this site. Michigan ranks as the most affordable state to retire in 2022, according to a recent Bankrate analysis. Florida has a lot of infrastructure for older folks health care, lots of gated adult communities, golf courses. Utah ranks relatively well for its health care, and its crime rate is lower than average. The Most Affordable Places to Retire. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Retirement often brings a slower pace of life. It also ranks relatively well for health care and has one of the highest percentages of the population aged 65 and older, according to WalletHub. FEMA rates the natural hazards risk as moderate, which is the middle ranking. 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. 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. Virginia is tax friendly for retirees and offers a wealth of green spaces and beaches whats not to love? The 15 best, worst states for retirement in 2022 Colorado 4. We adhere to strict standards of editorial integrity to help you make decisions with confidence. Idaho Idaho solidifies its ranking as a top retirement state by offering many tax breaks for seniors. 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. Do you still want to be able to play golf, tennis or pickleball? Wyoming #10. 18 in Bankrates affordability index. The state income tax rate is a flat 5%. Washington. This abandoned high school was converted into a 31-unit apartment building. 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. Water is big in the summer. How will your income be taxed? More: How to get your retirement plan back on track. Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. We have a ton of coastline and incredible seafood you'd pay a premium for right outside, you just have to dig it up! Florida #2. 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. While property taxes are relatively high, the median home value is just around $180,000, according to Zillow. Naples, Florida. 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. For example, WalletHub found that Mississippi has the lowest adjusted cost of living, while Hawaii has the highest. Oregon has no sales tax but makes up for that with an income tax rate that hits 8.75% at just $18,400 of taxable income for a couple (with Social Security excluded). There is also a state estate tax. Florida was at the top of the list. Downsides: Winters are cold and the serious crime rate is above the national average. Montana ranks relatively well for its quality of life and affordability. Arizona 3. Retirement savings cheat sheet: A quick contribution guide for 2023 . Georgia #3. 4. 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. Brian Beers is the managing editor for the Wealth team at Bankrate. Time to head to the mountains! 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. 10 Best States For Retirement #1. The restaurant scene is robust. The Bankrate survey analyzed all 50 states for affordability, based on the cost of living index and the effective tax rate. 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. There are five national parks within Utah alone (and another three nearby). Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Another downside: Serious crime is above the national average. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. Nature trails are just outside town. 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. Elevation is 60 feet. The state ranks relatively well for health care, but lags behind for its elder abuse protections. As with Naples, hurricane exposure is real, but less than some other coastal towns. The Villages in Florida is one of the largest retirement communities in the U.S. (iStock). Florida was at the top of the list. Score fresh maple syrup and ski down snowy slopes in the Green Mountain State, renowned across the country for its natural splendor. 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. Social Security income is tax-exempt, and most types of retirement income if your 62 or older. 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. 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! The city is very bikeable, but not so walkable. Our experts have been helping you master your money for over four decades. Cheap housing costs, low crime rates and low taxes attract plenty of retirees to Kentucky. Nevada 10. 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. While we adhere to strict 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. Louisiana T-3. Nevada. The top state income tax rate (on taxable income over $39,700) is 5.5%, dropping to 5.3% next year. 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. We are an independent, advertising-supported comparison service. Whats vitally important for people in that age group are medical care, access to shopping and public transportation. From dining out and travel to insurance and investments, discover how much an AARP membership can save you. Winters are cold. Florida really may be the best state to retire in, according to a new report. After all, 26% of non-retirees have no retirement plan at all, according to a 2021 report by the Federal Reserve. But recent trends may help point you in the right direction. New Jersey #2. Lakes, rivers, mountains, deserts, wildlife, we have it all and its quite varied throughout the state. After a lifetime of hard work, two-plus years of dealing with COVID-19, and the . Doctors are abundant. 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. Tennessee #9. Quaintly historic coastal city offers fine dining, a big arts scene, outdoor water activities and golf (with 39 courses in the area). On the other hand, Maryland is way below the cadre of ranking. Alabama #7. 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. With 120 nearby wineries, this quaint rural town 260 miles southeast of Seattle, boasts a surprisingly robust fine dining scene. However, property and sales taxes tend to be higher than average. Social Security benefits are exempt and theres no state estate tax. A new list came out last week from bankrate.com, and it immediately got a lot of attention.While their list isn't bad, it really misses the most important thing - lists like this don't make sense because they don't take into account that everyone's retirement . What a $1 million nest egg looks like in today's America . Meanwhile, for potential retirees seeking a cultural melting pot, Florida boasts solid racial diversity and a significant LGBTQ population. For weather scores, we relied on three decades of average daily temperature data from the National Oceanic and Atmospheric Administration. Winters can be cold. 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. 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. A low cost of living is a priority for some, while being close to family takes precedence for others regardless of the cost. As a result, many retirees are looking for ways to stretch their savings. 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. What are index funds and how do they work? Connect with a financial planner today. Midwestern and Northeastern states top the list, while some warmer states that might seem appealing for retirement, such as Hawaii and California, rank lower. Mutual Fund and ETF data provided byRefinitiv Lipper. 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. All rights reserved. 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. 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. 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. Start Slideshow . 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. The worst state in the U.S. for retirement is New Jersey, followed by Mississippi and New York, based on WalletHub's findings. Theres no estate tax or tax on Social Security benefit, but the state income tax rate is a hefty 8% on taxable income above $96,870 per couple and goes up to 13.3% for the very wealthy. 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.. The state includes plenty of recreational opportunities for seniors, according to resident Torrey Stephen Whitman on Quora. Elevation is 950 feet. Join here. Minnesota Best State vs. Melbourne, Florida. When delaying your RMDs might not be the best idea . Plenty of parks and outdoors areas offer hundreds of miles of trails for hiking and biking. And, of course, not everyone likes the sweltering summers of the Sun Belt states that populate the top of our rankings. 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. According to Bankrate's study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. But there is no state income tax on Social Security earnings and theres no state estate tax. If youre interested in Florida or Arizona or California, stay there for a while and see if you like the climate at the time of year youre going to be living there. 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. We will examine some states that are less expensive, tha. Should you accept an early retirement offer?