Helping You Protect Your Money. Helping You Protect Your Future.
A comfortable retirement is a lifelong goal for people of almost any age, in any profession, and from every state.
But that isn’t to say retirement has equal value across state lines. Taxes, cost of living, and even climate give certain states an upper hand when it comes to retirement; the same income and investments can have much different values in different parts of the country. In this blog, we will be looking at a ranking of the most ideal states for retirement.
Before making any plans, we recommend speaking with a financial professional who can help you find the state that makes the most sense for your financial situation.
The value of working with a financial professional varies by person, however research suggests people who work with a financial professional feel more at ease about their finances and could end up with about 15% more money to spend in retirement.
Best States for Minimizing Taxes in Retirement
If shrinking your tax liability is high on your list of priorities, a few states stand out. The winners on the list below either have no state income tax, no tax on retirement income, or a substantial discount on the taxes levied on retirement income. But that’s just the start.
While several additional states have no state income tax, the states that made the list also have favorable sales, property, inheritance, and estate taxes.
That’s not to say they don’t make up for it in other areas, however. Washington State, for example, has no state income tax, but does have a 6.5% state sales tax. Still, it’s always beneficial to avoid income tax when possible.
While Alaska may have favorable tax policies, lounging in Anchorage may not be your idea of a relaxing retirement. To uncover where retirees actually want to live, let’s dive into another set of numbers.
According to the Federal Interagency Forum on Aging Statistics, six states are the standout favorites among the over-65 crowd. No other states surpass their density of residents over the age of 65:
Now, let’s compare. By cross-referencing the list of “Best States for Minimizing Taxes in Retirement” with our list of states most densely populated with retirees, we find that only one state makes both lists.
The Sunshine State offers favorable taxes, pleasant climate, and reasonable cost of living.
The Bottom Line
Wherever your retirement dreams take you, it’s important to keep the above in mind and make the right decision for your financial situation.
A financial professional can help you consider not only the tax implications of a move, but also other factors specific to your situation.
Not sure where to start? Summerlin Benefits Consulting can help. We have been helping clients across Northern Florida and Southeast Georgia since 2012. We would love to know what is important to you in retirement!