Are you considering moving in retirement? Recently, SmartAsset released their Top 10 States Where Retirees Are Moving. Most of the Top 10 appear to be places with mild climates and many have low or no state income taxes.
Escaping the cold winters is a common goal for many soon-to-be retirees. Studies show people who live in more mild climates tend to experience positive health benefits and be more active than people who live in colder climates. However, many times warmer climates will mean a higher cost of living. Hot spots like Scottsdale, Austin, and Fort Lauderdale tend to have higher cost of housing, food, and other living expenses. With some research though, retirees can find communities with a lower cost of living near areas in high demand.
Moving to a state with no income taxes seems like a no brainer, but it is important to remember taxes come in many flavors. For example, Iowa has high income tax rates relative to the rest of the county. But, Social Security benefits are tax-free and retirees get other favorable tax deductions that usually lower the amount of taxes actually paid. Places like Florida and Texas may have no state income tax, but their property and local taxes are some of the highest in the county.
It is always important to research your relocation options. Making a plan of action will ensure you are prepared for the big move. Contact our office today for help with your transition.