With the new year in full swing, it’s time to begin taking stock of your goals for the year, especially if you are about to retire. A lot of retirees have been moving out of state to get the maximum benefit of lower or no state taxes, as well as to improve their way of life.
If you don’t need to remain where you’re living now, you may want to think about where you’re going to retire and what fits best for you, your lifestyle, and your goals.
The first thing to think about is what kind of lifestyle you want when you do retire.
A pretty log cabin in the woods might be perfect for some, but if you are a beach lover, then South Dakota or Tennessee is probably not a good fit for your retirement dream, even though both of those states offer significant tax benefits.
If it’s tax breaks you’re after, there are a number of states that fit the bill. Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming don't impose state income taxes and also don’t add levies on your Social Security and pension income.
Certain states offer more in lifestyle, as well as healthcare and housing affordability. Of the top 5 places to retire in 2019 two of the cities were in Pennsylvania, two in Florida and one in Texas. The number one spot was taken by Lancaster, Pennsylvania, and the number two city to retire in was Fort Myers in Florida.
Some options are completely different and a little out there.
While many older Americans seek out warmer climates like Scottsdale, Arizona or the Gulf Coast of Florida, some are heading to the ice and snow of Alaska.
The Alaska Permanent Fund and the Permanent Fund Dividend paid to Alaskans is a unique and welcome boon to the residents of the state. Once you’ve been a resident of Alaska for a full year, you may be entitled to receive an annual payment from them.
Supported by oil revenue, in 2018, the fund paid out $1,600 per person. Anchorage might not be sounding so bad after all. On top of that annual windfall, the state is tax-friendly for seniors.
No matter where you decide to retire, do your research and make sure you are making the right choices for yourself and your family.
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