By
Steven Hart
One of the best ways to improve your lifestyle and make your
money go farther when you retire is to move to another state. Obviously
many factors including the recreational activities you enjoy, proximity
to family and the kind of climate you like will influence your choice.
Some of the states that are friendliest to retirees include:
Florida
In addition to warm weather the Sunshine State offers no income tax and some legal benefits not found elsewhere. Most retirement assets including IRAs, 401ks and annuities are safe from debt collection efforts and lawsuits in Florida. This means retirement income cannot be garnished there. To get this protection a person will need to be a legal resident of Florida and keep the retirement assets in a bank there. Other advantages that Florida has to offer is a low cost of living for the East Coast and lower property costs in areas outside of big cities like Miami and Orlando.
Nevada
Nevada offers retirees a warmer climate, although it does get cold there in the winter, no state income tax and a fairly low cost of living. Many costs including real estate, housing, gasoline and groceries are fairly low in Nevada. There is a fairly high sales tax in the state to which there are no exemptions including groceries. Another advantage to Nevada is that the gaming industry in the state offers many low and no cost recreation options for retirees. There are lots of non-gambling recreation options available as well including many golf courses. It should be noted that many people will not like the atmosphere in Nevada.
Texas
The Lone Star State offers retirees a warmer climate, a fairly cost of living and no income tax. It also offers a wide choice of places to live in, including college towns like Austin, big cities like Dallas and Houston, beach communities such as Galveston, suburbs, small towns and retirement communities. One advantage to Texas is that many recreation options including beaches, lakes, hunting, fishing, golf and shopping are in easy driving distance of pleasant small towns. Some parts of Texas do have very high property taxes and property values. Many people also find Texas too hot in the summer, so air conditioning costs can be high there.
Michigan
Michigan not only offers lots of wonderful recreational activities on the
Great Lakes it has some of the best tax benefits for retirees. A retired person can deduct up to $45,120 in pension income from Michigan state income taxes. A retired couple can deduct up to $90,240 in pension income from state income tax. In addition to that, Michigan residents can deduct all of their Social Security from state income taxes. Even with all the deductions Michigan has one low state income tax rate of 4.35% and generous property tax deductions for retirees. Another advantage to Michigan is that real estate there is very cheap so housing costs are also low. Persons who move to Michigan will face higher winter heating costs.
Other Retirement States
There are some other states that offer benefits for retirees. South Dakota offers a low cost of living and no income taxes. New Hampshire is in easy driving distance of New York and Boston yet it has no income tax or sales tax. North Carolina offers retired residents generous tax deductions, beaches and some areas with beautiful scenery and low housing costs. The best way to find the best state for you to retire in is to do lots of research and spend a lot of time in the state before you make the move.
Florida
In addition to warm weather the Sunshine State offers no income tax and some legal benefits not found elsewhere. Most retirement assets including IRAs, 401ks and annuities are safe from debt collection efforts and lawsuits in Florida. This means retirement income cannot be garnished there. To get this protection a person will need to be a legal resident of Florida and keep the retirement assets in a bank there. Other advantages that Florida has to offer is a low cost of living for the East Coast and lower property costs in areas outside of big cities like Miami and Orlando.
Nevada
Nevada offers retirees a warmer climate, although it does get cold there in the winter, no state income tax and a fairly low cost of living. Many costs including real estate, housing, gasoline and groceries are fairly low in Nevada. There is a fairly high sales tax in the state to which there are no exemptions including groceries. Another advantage to Nevada is that the gaming industry in the state offers many low and no cost recreation options for retirees. There are lots of non-gambling recreation options available as well including many golf courses. It should be noted that many people will not like the atmosphere in Nevada.
Texas
The Lone Star State offers retirees a warmer climate, a fairly cost of living and no income tax. It also offers a wide choice of places to live in, including college towns like Austin, big cities like Dallas and Houston, beach communities such as Galveston, suburbs, small towns and retirement communities. One advantage to Texas is that many recreation options including beaches, lakes, hunting, fishing, golf and shopping are in easy driving distance of pleasant small towns. Some parts of Texas do have very high property taxes and property values. Many people also find Texas too hot in the summer, so air conditioning costs can be high there.
Michigan
Michigan not only offers lots of wonderful recreational activities on the
Great Lakes it has some of the best tax benefits for retirees. A retired person can deduct up to $45,120 in pension income from Michigan state income taxes. A retired couple can deduct up to $90,240 in pension income from state income tax. In addition to that, Michigan residents can deduct all of their Social Security from state income taxes. Even with all the deductions Michigan has one low state income tax rate of 4.35% and generous property tax deductions for retirees. Another advantage to Michigan is that real estate there is very cheap so housing costs are also low. Persons who move to Michigan will face higher winter heating costs.
Other Retirement States
There are some other states that offer benefits for retirees. South Dakota offers a low cost of living and no income taxes. New Hampshire is in easy driving distance of New York and Boston yet it has no income tax or sales tax. North Carolina offers retired residents generous tax deductions, beaches and some areas with beautiful scenery and low housing costs. The best way to find the best state for you to retire in is to do lots of research and spend a lot of time in the state before you make the move.
Steven Hart is a freelance writer and a Financial Advisor from Cary, IL. He writes about finance topics like annuities, insurance, investment, and retirement.
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