When it comes to retirement, not all states are created equal. As a retiree, it is important that you not only consider how much to save for retirement, but also how your place of abode could impact your financial life during retirement. Things that should be given considerable thought include the cost of health care, the impact of tax laws in the different states, the cost of living, as well as the economic health of each specific state. Bearing all these things in mind, here are 4 states that are considered to be retirement-friendly:
Believe it or not, Hawaii is a great retirement state with 16.1% of its population being older than 65 years of age. It is a highly tax-friendly state and the average income for households in this age group is just under $72,000 per annum. Average health costs for a retired couple living in Hawaii is below the national average at $375,273. The national average for the US is $423,523.
The cost of living in Georgia is 7% below the national average which makes the state attractive for retirement purposes. Although the average income for 65+ households is just approximately $50k annually, the average health costs is below average, and the state is tax friendly.
Apart from the beautiful weather in Florida, many retirees flock to this state because it is among the most tax-friendly states in the US. Average income for 65+ households is just over $51k but the attractive tax laws mitigate any negative consequences.
The cost of living in Alabama is 13% below the national average, making retirement living more affordable. Average health costs for a retired couple aged 65+ years is also below the average at $404,922.