When planning where to retire in the United States of America, there are several factors to weigh in. Some factors are personal while some are focused on lifestyle.
Individual preferences, such as climate and activities may weigh heavily in the decision-making. Measurable factors, such as taxes and cost of living, are also equally significant because they are generally related to financial health. And irrespective of where you live in America, your financial health impacts your quality of life.
Of course, determining where to retire is more intricate than picking a state that has reasonable summers, and plenty of sunshine. Even with a solid retirement fund, the cost of housing, healthcare, and other factors are still significant.
To narrow down the options that might be best for you, start by contemplating a number of important factors that will have a direct impact on your life, your net worth, and your general life satisfaction.
Outline below are some factors worth considering with regard to the best retirement states for high-net-worth individuals.
American Quality of life
The quality of life that comes with any US state is one of the most significant factors to take into consideration. The conclusion on this is up to the retirees to decide what would make his/her quality of life higher. For some, that means living near their families, while for others, it might be having great local sports teams or easy access to hiking trails.
Consider what improves your life, and what you would like to be near in order to make that happen.
U.S. Housing market
Housing can be a retiree’s biggest monthly expense, and that extends to those with paid-off mortgages. As a retiree, If you’re nervous about living on a limited income in retirement, you may want to favor a state where housing costs are moderately low.
It is also crucial to consider a real estate property that meets all of your personal needs, e.g., one that has a pool or a sufficient number of bedrooms.
Assess the cost of living
Another factor significant to retirees is the cost of living. Provided that the average pre-retiree can anticipate spending around 50% to 80% of their current income in retirement, a low cost of living is important to most individuals to help stretch their retirement income further. This is also a factor that will ensure that retirees come out whole, should financial circumstances change.
Taxes
With limits on income, the tax burden in retirement can be a high priority. The amount you pay in taxes can differ quite a bit in the United States, depending on where you live. It also relies on what kind of taxes hit you hardest. Some American states have no income taxes. Some have very low property taxes or no sales tax.
The key aspects of taxation to consider in retirement are Income taxes, Estate taxes, Inheritance taxes, and Sales taxes.
Keep in mind: States without an income tax are desirable to a lot of people, but in retirement when your income is lower, you may find that property tax is more of a disadvantage. Taking some time to evaluate how a state’s taxes are structured can potentially save you millions of dollars over time – your Damalion expert can help in this aspect.
Healthcare
Having access to premium healthcare is another priority when considering retirement. As we age, the requirement for quality healthcare increases. So when determining which state to retire in, it’s significant to get a solid picture of what healthcare looks like.
A good indicator in that respect is the number of Medicare Advantage plans that are available in the state you’re looking to move to. If you want to avoid traveling to see professionals or access quality hospitals, evaluate healthcare options before you choose a retirement state.
Weather
Overall comfort and quality of life in retirement are heavily impacted by the activities undertaken. States with mild weather afford more opportunities for outdoor activities. As a retiree, If you like being outdoors, the climate of the state in which you live is significant to your physical and mental well-being.
But, the “perfect” weather isn’t the same for everyone. Some individuals like having four seasons, others like having places with great skiing, and some people like to avoid the humidity. Put all these into consideration when choosing your perfect state to retire.
Culture
There are a lot of cultural variations within the United States and depending on the things you like to do and even the food you like to eat, there are various places you might consider living. Luckily, there is something available for almost everybody.
Lastly, do some research and ensure that the area has a low crime rate
The best states to retire in the United States
So, what are the best states for retirees in the United States? There’s no conclusive answer to the question of what states are the best ones to retire in.
As stated above, there are many different factors to take into consideration that will affect your general quality of life after you retire. So it’s best to take the time to speculate about what matters most to you, to narrow down your options.
Here are some facts about some U.S states:
- Hawaii is beautiful, although a lot expensive.
- Florida‘s subtropical climate and access to plenty of quality beaches make it a desirable option for a relaxing retirement lifestyle.
- Though winters in Alaska are pretty cold, it comes with an abundance of National and State Parks, hunting and fishing opportunities, and untouched wilderness.
- Texas is the most populous state in the United States with no state income taxes.
- Wyoming has some of the most elegant landscapes in the country.
At the end of the day, concluding which state or even country, to retire in is going to be an incredibly personal choice governed by the unique circumstances of your life and retirement.
Are you ready to select a state to retire in, in the U.S. ? Before solidifying residency in a new state, ensure you get qualified advice from a professional, and that includes tax planning as part of your comprehensive wealth strategy in retirement. In other words, let’s go ahead and contact your Damalion expert now and let us help.
