best states to retire in 2022 best states to retire in 2022

Check out WalletHub's 10 best states for retirement to get the most out of your golden years: 1. Elevation is 140 feet. This is closely followed by Florida, Tennessee, Missouri, and surprisingly Massachusetts. 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. Some states offer tax breaks on retirement income. See the gallery for the 15 best states for retirement, according to WalletHub. Diversity scores used the Census racial and ethnic diversity index and LGBTQ population densities compiled by the Movement Advancement Project. Just be prepared for cold, snowy winters. On Monday, WalletHub published a report that found the best U.S. states to retire in in 2022. (Because the FBI significantly changed the reporting format for 2020 data, we did not rely on those statistics. You'll pay no regular or retirement income tax, and Nevada property taxes are low," RetirementLiving.com says. Texas 6. Alaska, on the other hand, held last place in our ranking. Our editors and reporters thoroughly fact-check editorial content to ensure the information youre reading is accurate. Not to mention it's more of a suburban-based state. 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 city is very bikeable, although not very walkable. Decide whats truly worth it while picking out a place for your golden years. How will your income be taxed? Texas. 7.. Fayetteville has a moderate natural hazard risk, but the serious crime rate is above the national average. 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. 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. Other popular retirement states. 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. Florida: Florida is a top retirement destination for many reasons. The . 1 spot as the most affordable state to retire in . The 15 best, worst states for retirement in 2022 Worst State: 2x Difference Alabama vs. Hawaii Annual Cost of In-Home Services Lowest 1. Zero down, 3.25%, 30-year fixed. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. More: How to get your retirement plan back on track. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. 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. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. With an elevation of 50 feet, the city is very walkable and bikeable. 2023 FOX News Network, LLC. This Atlantic Ocean city 100 miles north of Boston offers a wide variety of water and land recreation, including boating, kayaking, rafting, cross-country snow skiing, hiking and bicycling. ), Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access Dont like where youre at? Tired of living in an overcrowded metropolis? According to the report, South Dakota has the highest percentage of the workforce age 65 and older, while West Virginia has the lowest. These are the top 10 states that retirees are moving to: 1. New Jersey #2. Sarasota has a relatively high (but not very high) risk of natural hazards according to FEMA. New Hampshire. 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. The city is very bikeable and somewhat walkable. 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. Go trekking through the gorgeous Yellowstone and Grand Teton National Parks and dont miss Cheyennes annual Frontier Days Rodeo. Tennessee. California 48. A retiree will need to contend with the chilly winter months if they choose to reside in North Dakota but its relatively affordable housing and health care can make it well worth the climate. FEMA rates Portland as having a relatively low natural hazard risk. Daytona Beach, FL 4. 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. Some say the grass really is greener in the Bluegrass State which offers plenty of perks aside from horses and fine bourbon. The four seasons include cold winters. Make sure its really as affordable as you thought. Those who are able to travel tend to find good excuses to head south during parts of the winter Having said that, many retirees enjoy winter activities, including alpine and cross-country skiing, snowshoeing, snowmobiling and ice fishing, writes resident Tom Britz on Quora. Elevation is 50 feet. You have money questions. Florida really may be the best state to retire in, according to a new report. Large enough for us and our dogs plus lots of room for company, writes Brian Trapp on Quora. All rights reserved. The financial site's 2022 Best States to Retire list had a panel of experts score the 50 states on 47 different affordability, quality of life and health care metrics. FAQ - New Privacy Policy. Colorado 49. Special mentions go to Delaware, Virginia, and Washington, which were all in the top 20 on both lists. 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. From a financial perspective, there are a lot of things to consider. Melbourne, Florida. 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. Quaintly historic coastal city offers fine dining, a big arts scene, outdoor water activities and golf (with 39 courses in the area). How much should you contribute to your 401(k)? The scenic area has extensive parks and waterways conducive to hiking, fishing and boating, plus 21 golf courses. More: Is borrowing from a 401(k) a bad idea? South Carolina ranks poorly for its crime and safety it has one of the highest property crime rates in the country and health care, but its relatively affordable to live in. The state was dragged down by back-of-the-pack scores in affordability and weather. 2. I don't want to go to any state with excessive bugs or . Minnesota #5. 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. 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. Delaware ranks 6th in density, 9th in percent of households with kids, and 9.5th for median age. Social Security doesnt get taxed in the state, but other forms of retirement income can get taxed at rates as high as 7.15%, says SmartAsset. The city is somewhat bikeable, although not all that walkable. Beautiful state parks too. So, whether youre reading an article or a review, you can trust that youre getting credible and dependable information. Social Security income is tax-exempt, and most types of retirement income if your 62 or older. Idahos graduated state income tax rate hits a top rate of 6% at just $15,878 of income for married couples. Theres no state income tax on Social Security earnings, but there is a state estate tax. Alabama has some of the lowest adjusted costs of living, housing costs and annual costs of in-home services across the country. There is no state income tax, but there is a stiff state estate tax. However, Hawaii was found to have the highest life expectancy, while West Virginia was found to have the lowest. Its hard to make a blanket statement. An 85-year Harvard study found the No. The Villages in Florida is one of the largest retirement communities in the U.S. Fox Business Flash top headlines for January 24. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Do you still want to be able to play golf, tennis or pickleball? Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. August 18, 2022 / 12:01 AM / MoneyWatch What to do with your 401(k) in bear market Amid recession fears in bear market, experts say 401(k) investors should think long term 04:58 Seattle has a relatively high (but not very high) natural hazard risk. Georgia came out the winner, followed closely by Florida and Tennessee, in a list . Theres a plethora of outdoor water and land activities, including dozens of nearby golf courses. Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. At an elevation of 2,700 feet, the city is very bikeable, though not as walkable. Tallahassee, Florida, is pictured. But a lot of areas are definitely living at a slow pace, writes APtop2015 on Reddit. Score fresh maple syrup and ski down snowy slopes in the Green Mountain State, renowned across the country for its natural splendor. While some scenic destinations top the list, like sunny Florida and mountainous Colorado, the bottom of the list features two of the most populated states in the northeast. Austin is very bikeable and somewhat walkable. 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. Retirees may want to take a gamble on living in Nevada. There is no state estate tax. 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) Weve got the normal entertainment youd find everywhere and we get pretty decent Broadway tours if youre into that. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Alaska, on the other hand, held last place in our ranking. 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 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. There is no state income or estate tax. Delaware 5. Interesting Findings. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. And the worst states to retire in are: Alaska. Boulder has a favorable relatively low risk for natural hazards. For example, WalletHub found that Mississippi has the lowest adjusted cost of living, while Hawaii has the highest. The state ranks relatively well for health care, but lags behind for its elder abuse protections. Still, on average, people across the U.S. have roughly $400,000 dollars to nest on. However, you will need to contend with high property taxes and an inheritance tax, and your retirement income wont be exempt from taxation either. Related: 12 Best U.S. Cities for Retirement: 2022. . But there is no state income tax on Social Security benefits and no state estate tax. Bankrate has answers. This is due to a low cost of living and light tax burden for residents. Weve averaged three recent state rankings to create one master list. He oversees editorial coverage of banking, investing, the economy and all things money. 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. 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. With a raise next year of 5.9%, Nevada's Social Security recipients will get $1,614.41 per month. Minnesota Best State vs. MONEY CHECKLIST FOR PEOPLE AGED 50 AND OLDER. 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). The state includes plenty of recreational opportunities for seniors, according to resident Torrey Stephen Whitman on Quora. There are above-average doctors per capita and good air quality. Just watch out for high housing costs, if youre buying property in the Sunshine State, and the occasional alligator. Basically, you dont need to travel far to find really great places to eat.. Washington 50. According to The Motley Fool, housing comes relatively cheap in the state and the weathers pretty decent, with mild winters and warm summers. Its ideal for someone living on a fixed income, since theres no state income tax or estate and inheritance taxes. Tampa, Florida. FEMA rates the natural hazard risk in Walla Walla as relatively low. 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. That's a good thing, as the Peach State has over 350 golf courses, plus many parks, lakes, and rivers. highly qualified professionals and edited by Should you accept an early retirement offer? Nature trails are just outside town. You wont have to pay taxes on your Social Security benefits and you can claim a deduction on other types of retirement income. One downside: a serious crime rate above the national average. Toughest States for Retirees. Another: A 6.5% state income tax kicks in for couples at just $16,040 of taxable income. Sarasota, FL 2. Serious crime rate is higher than national average. Housing costs are on the cheaper end as well. At an elevation of 16 feet, the area is very walkable and bikeable, with good air quality and an adequate number of physicians per capita. 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. For example, WalletHub ranked Virginia as the best state to retire in its 2023 study, followed by Florida, Colorado, Wyoming, and Delaware. Oregon 9. 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. 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. Virginia also has some of the best elder abuse protections across the U.S., particularly in terms of total expenditure. Worst State: 2x Difference West Virginia vs. Minnesota By Sara Ventiera. Retirement savings cheat sheet: A quick contribution guide for 2023 . There is a high rate of volunteering. Elevation is 500 feet. It's not easy deciding where you'll spend what will hopefully be some of the most relaxing years of your life. Hilton Head has good air quality, an adequate number of physicians and a low serious crime rate. You can really get some bang for your buck, housing wise. Downsides: Winters are cold and the serious crime rate is above the national average. After a lifetime of hard work, two-plus years of dealing with COVID-19, and the . 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. En espaol | Choosing where to live after retirement is a huge decision and a very personal one. There is no state income tax and no state estate tax. Heres the thing: Retiring in Connecticut will cost you an arm and a leg but if you have the funds tucked away, youll enjoy excellent health care and low crime rates. A range of lifestyles and living costs are on offer, including ranches and farms in . Delaware #6. A recent Vanguard study revealed a self-managed $500,000 investment grows into an average $1.7 million in 25 years. Other attributes include good air quality and a high ratio of doctors per capita. Not everyone can afford to live on fixed incomes as prices rise. . Pennsylvania3rd best state to retire in Also, ranking high on our list is Pennsylvania. I have a 2,400-square-foot, four-bedroom, three-bathroom, all-brick house sitting on 1.25 acres. !function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script"),d=o[0],r=/^http:/.test(e.location)? Maryland #4. Because of all the tourists there is a lot to do in the summer in terms of restaurants, musical performances, theater and outdoor activities.. Where you decide to . Alabama #7. Lancaster, Pennsylvania. FEMA rates the natural hazards risk as moderate, which is the middle ranking. 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. Nothing too crazy to worry about like earthquakes or hurricanes or dangerous wildlife, says DChristy87 on Reddit. I can see Zion National Park from my backyard. 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. 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. 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. 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. 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. 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. All of our content is authored by North Carolina 4. 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. The capital of Texas hits all the leisure passions we rate. Quotes displayed in real-time or delayed by at least 15 minutes. The offers that appear on this site are from companies that compensate us. 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. 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. 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. It only takes 3 minutes to connect with an advisor who puts you first. Colorado #5. Florida has a lot of infrastructure for older folks health care, lots of gated adult communities, golf courses. Louisiana T-3. Those are deeply personal questions. 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, . Here's how the Secure Act 2.0 could help you get what you're owed. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. We will have it paid off in 18 years instead of 30, and save over $38,000 in interest. BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access. 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.