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For decades, Florida has reigned supreme as the quintessential retirement destination, a sunny haven for those looking to stretch their golden years’ savings. However, the Sunshine State’s crown is slipping as a new crop of contenders vies for the title of top retiree hot spot.
The reasons for this shift are varied: Florida’s adult communities have grown increasingly crowded and expensive, the looming threat of storm damage is a constant concern, and the extreme heat can be a deterrent for many. As a result, a growing number of seniors are looking beyond Florida’s borders, seeking alternatives that offer different climates, tax advantages, and lifestyles.
Here’s a look at some of the states now attracting a significant influx of retirees:
Delaware has been making waves on “best of” lists for retirees, particularly those focused on smart homeowner moves. While its coastline is smaller than Florida’s, it boasts delightful beaches, with Rehoboth Beach emerging as a prime Atlantic Coast vacation spot. The state is also tax-friendly, featuring no state or local sales taxes and exempting Social Security benefits from taxation.
For retirees seeking warmth, Arizona offers a distinct alternative to Florida’s humidity with its warm, dry desert climate. Social Security benefits are not taxed in the state, and while some pensions and 401(k) payments are, Arizona maintains a very low flat tax rate of just 2.5%.
Moving north, Colorado may not draw retirees with extensive financial incentives-some residents face taxes on Social Security, pensions, and 401(k) payments-but its appeal lies in its vibrant cities nestled alongside the breathtaking Rocky Mountains, offering a unique lifestyle draw.
If long, frigid winters don’t deter you, Wisconsin presents a solid retirement option. Dynamic cities like Milwaukee provide easy access to Lake Michigan and abundant outdoor recreation. Plus, the state does not tax Social Security payments.
Many who once considered Florida are now opting for nearby Georgia. This Southern state offers warm summers and mild winters, a beautiful coastline, lively and historic cities, and substantial income exclusions for retirees on their taxes.
For those who cherish the great outdoors, West Virginia is a robust choice. Residents enjoy easy access to stunning mountains, valleys, and more. The state is also progressively phasing out taxes on Social Security by the 2026 tax year, and some pensions are already exempt.
Pennsylvania provides several perks for retirees: residents experience four distinct seasons, the state ranks high in healthcare access, and its tax situation is notably favorable. It does not tax retirement accounts like 401(k)s and IRAs, and other income types are taxed at a low flat rate of 3.07%.
In New England, New Hampshire stands out for retirees who enjoy the beach but also desire all four seasons. With 13 miles of coastline, stunning mountains, and ample outdoor recreation, it also offers a significant financial advantage: no state tax on Social Security, pension, or 401(k) payments.
Further west, Wyoming is gaining attention for its breathtaking natural beauty and favorable tax policies. Residents enjoy easy access to national parks and historic sites, including Yellowstone, and the state has no personal income taxes, meaning no taxes on retirement income or other earnings.
While Minnesota doesn’t boast the most favorable tax situation for retirees, it offers many other draws. Cold-weather enthusiasts and winter sports lovers will find plenty to do, and the state is home to the renowned Mayo Clinic, making healthcare a significant advantage.
Many retirees seeking an alternative to Florida’s storm risks and popularity are relocating to South Carolina. The state does not tax Social Security, and pensions and 401(k) payments are partially taxable. Retirees can also enjoy hot summers and very mild winters.
With its dry heat, attractions like Las Vegas, and a favorable tax situation, Nevada is seeing a surge in retirees. The state has no state income tax, assuring seniors that their retirement income will not be taxed.
For those seeking an ideal tax situation coupled with four distinct seasons, South Dakota is worth considering. While winters can be chilly and quiet, South Dakotans benefit from no state income, estate, or inheritance taxes, and no taxes on Social Security, pensions, or 401(k) payments.
Missouri presents another affordable option for retirees. Even in major cities like Kansas City, the median home sale price and average rents remain low. Social Security taxes were recently eliminated, though potential residents should be mindful of the state’s location within “Tornado Alley.”
Mississippi is recognized for having one of the lowest costs of living in the country. For those considering the South, it also offers a favorable tax situation: retirement income is exempt, and the state’s income tax rate is set to decrease to 3% by calendar year 2030.
Finally, Iowa offers tranquility and small-town vibes, even in its capital, Des Moines, where the cost of living and housing prices are significantly below the national average. For residents aged 55 and older, retirement income is tax-exempt, and there is no inheritance tax, making it a solid option for those looking to build wealth for their families.
While Florida once dominated the retirement landscape, today’s seniors have a wealth of options, each offering a unique blend of climate, financial benefits, and lifestyle opportunities. From mountain vistas to coastal retreats, and from tax-friendly havens to vibrant urban centers, the perfect place to spend your golden years might just be waiting in one of these emerging retirement hot spots.