Retirees Are Choosing These 15 Places Over Florida

Additional Coverage:

15 Places Retirees Are Picking Over Florida (#4 Is a Clever Option) (financebuzz.com)

Beyond the Sunshine: Exploring Top Retirement Destinations That Aren’t Florida

For many, the thought of retirement conjures images of Florida’s sandy beaches and endless sunshine. But hold on a minute before you pack your bags for the Sunshine State! While Florida certainly has its allure (and no state income tax!), there might be other hidden gems across the U.S. that offer a better bang for your retirement buck.

We’re talking about places with more favorable tax rates, a lower cost of living, or even just a different kind of warm weather that could help your hard-earned savings stretch further. So, before you commit to life in Florida, let’s explore some compelling alternatives that might just be your perfect retirement haven.

1. Delaware: The East Coast’s Quiet Charm

Nestled between the bustling metropolises of New York City and Washington, D.C., Delaware offers a serene lifestyle with surprisingly easy access to big-city amenities. From the southern beaches to the rolling northern hills, this compact state packs a punch. It’s also a dream for retirees, with no tax on Social Security and only partial taxation on other retirement income and pensions.

2. Arizona: Desert Oasis for the 55+ Crowd

If year-round warmth is non-negotiable but you’re open to trading ocean waves for desert landscapes, Arizona might be calling your name. Much like Florida, Arizona boasts a plethora of vibrant 55+ communities, and with nearly 20% of its population over 65, you’ll find plenty of peers to share your golden years with.

3. Iowa: Surprisingly Affordable Midwest Living

Iowa might not immediately spring to mind when you think of retirement, especially if you’re chasing Florida’s warmth. However, this Midwest state offers a significant advantage: affordability. Consistently ranking among the lowest-cost-of-living states, Iowa’s median home sale price in November was a budget-friendly $244,100, a stark contrast to Florida’s $405,300.

4. Virginia: Tax-Friendly Neighbor to the South

Many retirees flock to North Carolina for its southern charm, only to be surprised by its retirement income taxes. Instead, consider heading a little further north to Virginia. This state is notably more tax-friendly for retirees, exempting Social Security from taxation and only partially taxing income from retirement accounts and pensions.

5. Pennsylvania: A Haven for Older Residents

With 20% of its population aged 65 and over, Pennsylvania clearly knows how to keep its older residents happy. One major draw?

Its extremely retiree-friendly tax policies. The state levies no taxes on Social Security, retirement account withdrawals, or pension income.

6. Missouri: Low Cost, High Value

Missouri offers a compelling lower cost of living compared to Florida, with a cost-of-living index of 88 versus Florida’s 102. A significant contributor to this affordability is housing, where the median home sale price in November was $280,500, considerably less than Florida’s $405,300.

7. Georgia: Florida’s Affordable Next-Door Neighbor

Want to be close to Florida’s appeal without crossing the state line? Georgia might be your ideal spot.

Like Florida, it’s a tax-friendly state for retirees, with no taxes on Social Security and only partial taxes on other retirement income. Plus, its cost-of-living index of 91.7 is a welcome relief compared to Florida’s 102.

8. Wyoming: The Tax-Free Frontier

For those seeking wide-open spaces and a truly tax-friendly environment, Wyoming shines. This state boasts a lower cost of living (index of 97) than Florida and, like Florida, has no state income tax. Even better for retirees, Wyoming imposes zero taxes on Social Security, pensions, and retirement account income.

9. Michigan: Affordable Great Lakes Living

While Michigan won’t offer year-round warmth, it presents other attractive factors for retirees. The state is kind to retirees, with no tax on Social Security, and partial taxation on pensions and retirement account income, which will be fully exempt by 2026. With a cost-of-living index of 89.8, it ranks among the most affordable states.

10. Mississippi: Southern Charm and Savings

Another southern state offering beaches and warmth without the Florida price tag is Mississippi. Retirees will appreciate its low-tax environment, as Mississippi doesn’t tax Social Security, retirement account income, or pensions. Housing is also more affordable, with a median home sale price of $268,500 in November, compared to Florida’s $405,300.

11. Nebraska: Prudent Midwestern Retirement

If saving money on a fixed income is a priority, Nebraska could be an excellent choice. Its cost-of-living index stands at a favorable 92.4, significantly lower than Florida’s 102. Housing plays a key role in this affordability, with a median home sale price of $308,200 in November, versus Florida’s $405,300.

12. Nevada: The Silver State’s Tax Advantages

Nevada is a champion for tax-conscious retirees. This state boasts no state income tax and, crucially, doesn’t tax Social Security, retirement accounts, or pensions, making it a powerful option for maximizing your retirement income.

13. West Virginia: A Community of Peers and Affordability

West Virginia stands out with a remarkable 21.48% of its population over 65, placing it fourth nationally for its senior population. If living among peers is important, this state offers a strong community. It’s also incredibly affordable, with one of the lowest costs of living in the country (index of 88.6).

14. Alabama: Southern Hospitality and Savings

With a cost-of-living index of 87.6, Alabama presents itself as an affordable option for many retirees. The state is also quite retiree-friendly when it comes to taxes, exempting the first $6,000 of retirement plan distributions for those 65 and older, and imposing no taxes on Social Security or pensions.

15. South Carolina: Coastal Living Without the Florida Price

Seeking coastal living in the South without the full Florida experience? South Carolina offers a compelling alternative.

It boasts a friendly tax policy for retirees, with no tax on Social Security and only partial taxation on retirement account withdrawals and pensions. Housing is also more attainable, with a median sale price of $379,400 in November, compared to Florida’s $405,300.

The Bottom Line

While Florida’s warm climate might be enticing for early retirees, a well-rounded retirement plan considers more than just sunshine. Think about factors like proximity to airports, quality of medical facilities, and finding a community that resonates with you.

As you embark on this exciting next chapter, consider consulting with a financial advisor. They can help you run “what-if” scenarios based on your savings and investments, ensuring you can afford the lifestyle you envision. This crucial information can be the deciding factor in where you choose to call home for your golden years.