Additional Coverage:
- Retirees Are Leaving These 5 Cities in Droves (And Going to These 5 Spots Instead) (financebuzz.com)
Retirees on the Move: Where Are They Fleeing From and Where Are They Heading?
As the Bureau of Labor Statistics reports 10,000 baby boomers retiring each month, a significant question arises: where are these newly minted retirees choosing to spend their golden years? Many factors weigh into this crucial decision, from proximity to family to escaping harsh winters, and perhaps most importantly, where their hard-earned retirement savings will stretch the furthest.
We’ve observed some clear trends in the great American retirement migration. Here’s a look at the cities retirees are packing their bags to leave, and the welcoming havens they’re choosing instead.
The Exodus: Cities Retirees Are Leaving
1. New York City, New York
The Big Apple may be a cultural and business powerhouse, but its sky-high cost of living is proving to be a major deterrent for retirees on fixed incomes. Financial website SmartAsset reported that nearly 20,000 retirees bid farewell to New York City in 2021, making it the top city for retiree departures nationwide.
2. Los Angeles, California
Another major urban center, Los Angeles, is also seeing a significant outflow of retirees, likely due to its exorbitant cost of living. Redfin data indicates that housing costs in L.A. are a staggering 128% above the national average, with overall living expenses 50% higher. Furthermore, California’s tax structure may be prompting some to seek more financially favorable states nearby.
3. Chicago, Illinois
The Windy City seems to be blowing some retirees out of town. Illinois ranks second among states experiencing an out-migration, with 24.1% of those surveyed by United Van Lines citing retirement as their reason for leaving. High living costs and a colder climate, compared to more southern destinations, are likely contributing factors.
4. Seattle, Washington
While Seattle boasts major tech giants like Microsoft and Amazon, the economic prosperity that brings can also drive up prices, making it less appealing for retirees. The median home sale price in Seattle reached $874,950 in September 2024, according to Redfin. Over 26% of individuals leaving Washington state indicated retirement as a primary motivator.
5. Jersey City, New Jersey
Similar to its neighbor, New York, New Jersey is experiencing a retirement exodus, largely attributed to the high cost of living. Redfin’s search data reveals that four of the top ten housing markets Jersey City residents explored were in Florida, signaling a strong preference for the Sunshine State. United Van Lines reported that almost 34% of those leaving New Jersey cited retirement as their primary reason, surpassing job or family-related moves.
The Influx: Where Retirees Are Settling Down
Now, let’s turn our attention to the destinations rolling out the welcome mat for America’s retirees.
1. Mesa, Arizona
Arizona has emerged as a prime retirement hotspot. United Van Lines data shows that 34.5% of new residents moving into Arizona cited retirement as their primary reason. Mesa, situated just east of Phoenix, welcomed nearly 5,000 new residents over 60 in 2021, possibly due to its lower sales tax compared to Phoenix.
2. Henderson, Nevada
Nevada’s allure for retirees is bolstered by its lack of state income tax, a significant draw for those on a fixed budget. Henderson, part of the Las Vegas metropolitan area, offers retirees easy access to entertainment, dining, and casinos.
3. San Antonio, Texas
Texas, another state without a state income tax, is also proving to be a golden choice for retirees. San Antonio stands out for its affordability, with a median home sale price of $264,000 in September, significantly lower than Austin ($553,275) or Dallas ($411,250), according to Redfin.
4. Boise, Idaho
For West Coast retirees looking to stay in the West without breaking the bank, Boise, Idaho, presents an attractive option. The state capital, known for its scenic Boise River Greenbelt, is drawing new residents, with retirement being the second most popular reason for moving to Idaho, behind family reasons, as reported by United Van Lines.
5. Jacksonville, Florida
In the northeastern corner of Florida, Jacksonville offers a thriving metropolitan environment, complete with an NFL franchise and major businesses. However, its warm weather and beautiful beaches are undeniably a major draw for retirees.
A remarkable 37.6% of new Florida residents cited retirement as their primary reason for relocating. Notably, Jacksonville also provides an affordable option for retirees seeking the Florida lifestyle, with a median home sale price of $309,000 in September.
Bottom Line: Planning for a Stress-Free Retirement
Planning for retirement is a critical aspect of one’s working life. As the transition from full-time employment approaches, creating a future budget is paramount. Beyond housing, it’s essential to factor in desired retirement activities, whether that’s travel or pursuing hobbies like golf.
With diligent investing and saving, a stress-free and enjoyable retirement can become a reality.
Essential Money Tips for Everyone
Regardless of your current financial standing, there are always opportunities to enhance your financial well-being. Here’s a quick checklist to consider:
- Prioritize Debt Repayment: Debt can hinder financial progress. Beyond cutting expenses, tools like balance transfer credit cards and debt counseling can accelerate debt repayment.
- Boost Your Income: If finances are tight, earning extra income can provide much-needed breathing room. A new job is an option, but for those not ready for a major change or already retired, a part-time side hustle could be ideal.
- Reduce Expenses: While it might not sound exciting, cutting expenses doesn’t have to be painful. Focus on your largest expenditures for the most significant savings.
For instance, with soaring auto insurance rates, shopping for a new provider can quickly lower your bill. For upcoming vacations, the right travel credit card could help offset costs.