# Top retirement states.



## AZ Jim

[h=1]The 7 Best States to Retire[/h]

By    Sean Williams     |  More Articles 

 July 19, 2015  |                    
	

	
	
		
		

		
			




Source: Flickr user Torbakhopper.
 Ask any retiree, and they'll tell you that creating and  sticking to a retirement plan is no easy business. It takes decades of  dedication for the average person to amass enough retirement savings to  retire comfortably and on their own terms.
 In some instances, however, deciding _where_ you want to retire can be just as important as deciding _when_  you want you to retire. The reason is that all 50 U.S. states have  differences in the way your income and retirement benefits may be taxed.  States can also differ greatly in terms of state, local, and even  property taxes.
 So which are the best states to retire in? Thankfully, _Kiplinger_ has done some of the legwork for us and ranked  the best states for retirement from top to bottom in June. Today, we'll  focus on the top seven states listed and dig deeper to look at what  qualities, both financial and non-financial, might make these states  desirable locations to spend your golden years.
*The seven best states to retire in*




Hawaiian beach. Source: Pixabay.
*7. Hawaii
*Coming in seventh is the ultimate getaway state, Hawaii.
 Now, let's get the one downside of Hawaii out of the way: It's  considerably more expensive to live in Hawaii than most anywhere else in  the United States. Its cost of living is on par with that of New York  City and San Francisco. But if you've diligently been saving for  retirement and can afford its higher cost of living, there are  unparalleled advantages to living in Hawaii, such as being on an island,  dealing with 70-degree winters, and being able to enjoy what the  outdoors has to offer year-round.
 On top of its favorable weather and scenery, Hawaii doesn't tax  Social Security benefits or most pension benefits. Further, according to  the Bureau of Labor Statistics, Hawaii boasts an unemployment rate of  just 4.1% as of May 2015, meaning people who want jobs can find them in  Hawaii. The implication here is simple: Hawaii offers a stable economy,  which could be of serious interest to retirees.




Grand Canyon National Park, Arizona. Source: Pixabay.
*6. Arizona
*Sixth on _Kiplinger_'s best states to retire in is another (somewhat) popular vacation state: Arizona.
 Like Hawaii, Arizona offers a warmer climate than most U.S. states,  and it gives retirees plenty of options when it comes to getting out and  seeing the country. From golf courses to the Grand Canyon, Arizona has  scenery that will pique just about any retirees' interests. Best of all,  homes in Arizona are relatively affordable, with notably low property  taxes, which means your retirement dollars can stretch a bit further in  this state.
 Arizona is also a hot spot for retirees because it's among roughly  three dozen states that don't tax Social Security benefits, and its  top-tier state income tax rate (4.54%) doesn't kick in until you reach  $150,000 in income (or $300,000 for a married couple). Its generally  favorable tax situation could be important for baby boomers and retirees  relying on fixed-income investment tools such as bonds and CDs who need  their money to last as long as possible.




Mount Rushmore, South Dakota. Source: Pixabay. 
*5. South Dakota
*For the fifth best state to retire to, let's track north and east of Arizona to the oil-rich state of South Dakota.
 Arguably one of the greatest benefits of South Dakota is the open  scenery. Between the small community feel, the great places to fish, and  the Black Hills mountain range, South Dakota has the look and feel of  being a truly unique place to retire. On the flip side, it also has a  particularly harsh winter, with temperatures regularly plunging well  below freezing. Although frigid temperatures probably mean a lower crime  rate, retirees will have to weigh South Dakota's wild seasonal  temperature swings when deciding if they want to retire here.
 Should you choose to retire in South Dakota, you'll be pleasantly  surprised by its favorable cost of living and tax situation. South  Dakota retirees will avoid being taxed on Social Security benefits and  will also enjoy the lack of a state income tax. South Dakota's vast  energy assets (oil and natural gas) generate enough revenue to the point  where a state income tax, as well as estate and inheritance taxes  aren't needed. These energy assets are also responsible for pushing  South Dakota's unemployment rate to a microscopic 3.8% as of May 2015.




Downtown Philadelphia, Pennsylvania. Source: Pixabay.
*4. Pennsylvania
*If you're looking to retire on  the East Coast without an East Coast cost of living, then fourth among  the best states to retire, Pennsylvania, may be right up your alley.
_Kiplinger_ notes that one of the primary allures of  Pennsylvania are its many cultural attractions and the allure of its big  city, Philadelphia, for seniors. As the study points out, AARP named  Philadelphia one of the best big cities for retirees in the U.S. thanks  to its free or reduced transit fares for those aged 65 and up.
 But truth be told, the financial aspects of Pennsylvania are what  make it a hot spot for retirees. Social Security benefits are free from  taxation, as are tax-advantage retirement account payouts such as  401(k)s and IRAs. Median home prices are also particularly attractive.  As recently as the third quarter of 2013, home prices in the Erie area  of Pennsylvania sold for 41% below the national average. Cheaper home  prices and tax-free status for tax-advantaged retirement accounts means  you get to keep more of your money in retirement.
 You must be aware of two things, though, when retiring in  Pennsylvania. It is one of a select few states that collect an  inheritance tax, and property taxes in the state are higher than the  national average. There's always going to be some give-and-take, and  this is the "take" of retiring in Pennsylvania.




A small town in West Virginia. Source: Pixabay.
*3. West Virginia
*Among the best states to retire, West Virginia cracks the top three with its beautiful scenery and very low cost of living.
 One of its greatest allures is its location right in the heart of the  Appalachian Mountains, which entice those looking to take advantage of  West Virginia's abundant state parks and forests during retirement.  Given the state's lack of large cities, retirees will get that community  feel in West Virginia.
 However, the scenery only tells half the story as West Virginia also  offers the most affordable housing and rental options for senior  citizens. _Kiplinger_ notes a median home value of just $91,400,  which is tied for the lowest in the country with Mississippi. Other  perks include a very low property tax and absolutely no inheritance or  estate taxes.
 The downside is that the weather can vary wildly based on where  you're located within the state (meaning snowstorms are possible during  the winter); there is a tax on Social Security benefits (although the  first $8,000 of retirement income for individuals or $16,000 for married  couples is exempt); and West Virginia has the second-highest  unemployment rate in the country at 7.2% as of May 2015, behind only the  District of Columbia.




Tampa, Florida. Source: Pixabay.
*2. Florida
*The runner-up of the best states to  retire is Florida, the sunshine state. Of the seven states listed here,  this should be the least surprising of them all. Florida's current  demographics show a median age of nearly 41, which is well above the  national average. In other words, Florida has been and will likely  remain a retirement hot spot for a long time to come.
 Florida's obvious appeal are its easy access to beaches and the ocean  and its tropical weather, which means a temperate to warm climate  pretty much year-round. The one downside/concern here will be  homeowners' insurance costs due to Florida's risk of being hit by a  hurricane or tropical storm. But housing costs are relatively cheap for  seniors in Florida, with the housing bubble from 2008-2009 cutting homes  prices in half in some instances.
 From a financial perspective Florida is a big win for retirees. It is  among a handful of states that has no income tax (it receives plenty of  revenue from tourism), but is also doesn't tax Social Security benefits  or other retirement income. In other words, retirees in Florida will  have a good opportunity to keep the money they've saved and invested  throughout their lives rather than give it up to local and state  government taxation.




Newark, Delaware. Source: Pixabay.
*1. Delaware
*Of the best states to retire, Delaware, which is already nicknamed "The First State," takes the top honor, according to _Kiplinger_.
 Like many of the states we've discussed, it has both  financial and non-financial draws. Delaware's proximity to water and  temperate climate (at least for those living near the water) make it an  appealing retirement destination. And as a smaller state, Delaware lacks  big cities, giving the state that small community feel.
 In addition to having the ocean, mountains, and forest all  within driving distance, Delaware also offers an abundance of financial  perks for seniors. These include no taxes on Social Security benefits  and exemption on the first $12,500 of pension income per year for  retirees. Additionally, property taxes in Delaware are a staggeringly  low 0.43%, and there's no sales tax to speak of. Yes, the cost of living  is a bit higher in Delaware in terms of buying a home, but a lack of  other taxes makes retiring there well worth it for many seniors.


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## 3horsefarm

But Arkansas has the second best (after Miss) cost of living, land is cheaper, the hunting and fishing are great, among a lot of other goodies that keep me here. And property taxes are low. I pay less than $100 a year for my 26 acre place.


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## AZ Jim

3horsefarm said:


> But Arkansas has the second best (after Miss) cost of living, land is cheaper, the hunting and fishing are great, among a lot of other goodies that keep me here. And property taxes are low. I pay less than $100 a year for my 26 acre place.



I think they make the point that the summary is made up of all factors not just cost of living.


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## 3horsefarm

Arkansas can pretty much match it all except the ocean part. There is so much here.


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## squatting dog

3horsefarm said:


> But Arkansas has the second best (after Miss) cost of living, land is cheaper, the hunting and fishing are great, among a lot of other goodies that keep me here. And property taxes are low. I pay less than $100 a year for my 26 acre place.



Shhhhh, don't let this secret out. I still have a house in NE Arkansas.


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## 3horsefarm

Mum's the word!


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## Davey Jones

Delaware and South Dakota ???

You gotta be kidding me.


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## 3horsefarm

Agreed. My brother just came back from SD. Didn't like it at all.


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## AZ Jim

3horsefarm said:


> Agreed. My brother just came back from SD. Didn't like it at all.



Spent about 12 years in SD.  Wessington Springs, Pukwana and Chamberlain.  I like everything but the winters and also how far you had to travel for major medical help.


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## 3horsefarm

Yeah, the winters suck, and I HATE winter. My roses bloom sometimes for christmas here.


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## John C

East Tennessee is pretty good.  I grew up there and Roosevelt's TVA built dams that created lakes for fishing and camping.  In recent years, there has been a lot of development for retirement purposes.  People move down from Northern states, Michigan in particular, who seem to be pleased with their choice.  All these developed areas are near The Great Smokey Mountain National Park.  The Lost Sea is there and is worth a visit.


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## oldman

Pennsylvania?? Our property taxes are very high. We get very little tax break on real estate. Everyone, all ages, gets a 20% homestead exemption, if they qualify, which 99% do.


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## Ameriscot

John C said:


> East Tennessee is pretty good.  I grew up there and Roosevelt's TVA built dams that created lakes for fishing and camping.  In recent years, there has been a lot of development for retirement purposes.  People move down from Northern states, Michigan in particular, who seem to be pleased with their choice.  All these developed areas are near The Great Smokey Mountain National Park.  The Lost Sea is there and is worth a visit.



I escaped MI winters back in 1990 to move to East TN.  I loved the climate, being near the Smokies, lots of lakes and rivers to kayak, cost of living. The only thing that was a challenge was people who pushed the bible on you, which was frequent.  But since I was in a university town there were lots of transplants who were not bible thumpers, so it balanced out.


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## 3horsefarm

I cured all the bible thumpers here by telling them I was Buddhist. Now they are scared of me.


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## Davey Jones

AZ Jim said:


> Spent about 12 years in SD.  Wessington Springs, Pukwana and Chamberlain.  I like everything but the winters and also how far you had to travel for major medical help.



I'm 4 miles from the local hospital ER, anything longer then that ill be dead.


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## Ameriscot

3horsefarm said:


> I cured all the bible thumpers here by telling them I was Buddhist. Now they are scared of me.



I tried that as well!  Also tried Pagan.  I had one guy scream at me when I told him I wasn't christian!


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## Ameriscot

Davey Jones said:


> I'm 4 miles from the local hospital ER, anything longer then that ill be dead.



I'm about 8 miles from our small community hospital. Good enough to get stabilized and then transferred to one of the major hospitals in Glasgow.  If needed they'll use a helicopter.


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## 3horsefarm

I'm not christian, but neither are Jewish people and they do just fine. People just don't get that. Not christian does NOT mean no belief in god.


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## imp

Personally, I find the "list of 5" to be pretty whacko!   imp


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## Ameriscot

3horsefarm said:


> I'm not christian, but neither are Jewish people and they do just fine. People just don't get that. Not christian does NOT mean no belief in god.



Bible thumpers think that gods in other religions are different from their superior god.  I've heard people say if you aren't christian you don't believe in god.    Well, excuse me, but when I was pagan I had loads of god/esses!  So there!  layful:


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## SifuPhil

I think it hilarious that they say that Philadelphia is a great city for seniors.


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## DizzyBritches

I'm an hour from Philly, and I didn't get that either. It's a big Northeastern city with all the typical big-city problems, like CRIME. What is funny is that two of the named states are known for the usurious interest rates credit card companies incorporated there are allowed to charge. (They are Delaware and South Dakota).


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## SifuPhil

I wonder what they think of Colorado - between the great mountain views and the legal weed ... layful:


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## Denise1952

I see these vary, depending on who's link you click.  I read one the other day that had Idaho on there.  Texas is almost always on the lists I've seen.  Also, one I saw was Detroit Michigan.  I guess it depends on what a person can afford of course, and the weather they prefer.  I like moderate temperatures now, and a bit more sunshine then rain, but still love the freshness of rain.  The area I am in is not what I am hoping for, too much fog.  I want to stargaze  I grew up with hot, Summer nights and I think I would always miss those too though  I suppose happiness isn't a place, but a state of mind.  I can't see me being happy living in a swamp but some people would not live anywhere else if you payed them


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## Denise1952

SifuPhil said:


> I wonder what they think of Colorado - between the great mountain views and the legal weed ... layful:



Weed seems legal here, I smell it almost everytime I am out on any of the trails, or boardwalk around Eureka.  Seems like lot's of people openly smoking it


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## SifuPhil

nwlady said:


> Weed seems legal here, I smell it almost everytime I am out on any of the trails, or boardwalk around Eureka.  Seems like lot's of people openly smoking it



Yeah, Cally has always been a "progressive" place when it comes to weed. Same with NY - it's still illegal but it's all over the place.

It's like Prohibition - if the people want something they'll get it somehow. 

When I win the Publisher's Clearing House sweepstakes this October ($7,000/week for life) I'm moving to that penthouse in Denver, right down the street from the weed shop.


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## Denise1952

SifuPhil said:


> Yeah, Cally has always been a "progressive" place when it comes to weed. Same with NY - it's still illegal but it's all over the place.
> 
> It's like Prohibition - if the people want something they'll get it somehow.
> 
> When I win the Publisher's Clearing House sweepstakes this October ($7,000/week for life) I'm moving to that penthouse in Denver, right down the street from the weed shop.



LOL, sounds like a Cheech and Chong kinda dream Up in smoke, and off to lala land


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## Bobw235

nwlady said:


> Weed seems legal here, I smell it almost everytime I am out on any of the trails, or boardwalk around Eureka.  Seems like lot's of people openly smoking it



Not that there's anything wrong with that.


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## Denise1952

Bobw235 said:


> Not that there's anything wrong with that.



True, depends on what someone's opinion is, as with all subjects right


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## Lon

I am just fine here in California and have no plans to re-locate & I have been retired for 25 years. You couldn't pay me to live in West Virginia or South Dakota.


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## Linda

3horsefarm said:


> Arkansas can pretty much match it all except the ocean part. There is so much here.


A lot of people from these mountains are selling out and moving to AK, OK, North Dakota, AZ.  I spent 18 months in Oklahoma in the early 80s and I didn't care for it due to the storms (although a tornado never got me  and my husband said the ticks and chiggers spoiled his fishing trips.  I'm wondering, do you mind the tornadoes or are you like us Californians and our earthquakes? One thing I did like was the great sound of the thunder, which was like nothing I've ever heard in my life.  I also love all the green back there because it reminds me of my beautiful Oregon.


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## Linda

3horsefarm said:


> I'm not christian, but neither are Jewish people and they do just fine. People just don't get that. Not christian does NOT mean no belief in god.


*I sure wish more people understood that 3horsefarm.
*


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## Manatee

Most of those on the list fail my first requirement, I have to be able to look out the window and see palm trees.


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## SifuPhil

Manatee said:


> Most of those on the list fail my first requirement, I have to be able to look out the window and see palm trees.



I used to think that as well, but when I see them going by horizontally I rethink my requirements ...


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## DizzyBritches

My sister has lived in ND for nearly 35 years and I don't think a tornado has ever come near her. She has seen her share of funnels starting to form, though. The weather isn't ideal. It can snow from October through April. Summers are short, hot and humid. People who can afford it have lake cottages in nearby western Minnesota for weekend/summer getaways, and it's beautiful there. But I am close to my sister and that might sway me to move. I don't get to see her that often. And the cost of living is somewhat cheaper than it is in the NE part of the US.
Sometimes I think about Costa Rica.


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## AZ Jim

Bobw235 said:


> Not that there's anything wrong with that.



Bob, you are a fellow Seinfeld aficionado.  That was a funny episode.


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## AZ Jim

I lived in South Dakota and I saw first hand when the town of Spencer was literally leveled.  Amazing power.


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## Denise1952

AZ Jim said:


> Bob, you are a fellow Seinfeld aficionado.  That was a funny episode.



metoo, metoo Jim!!  Especially the one where Kramer was ripping off hospital trays and ran across what he called the "pig-man" LOL!!


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## AZ Jim

SifuPhil said:


> I used to think that as well, but when I see them going by horizontally I rethink my requirements ...



I paid to have a 40' palm taken down in my backyard.  Pain in the butt, trimming and pulling up all the little wannabe palm trees that self plant all over.  I can see many many palms here but none in my yard NOW!!


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## SifuPhil

AZ Jim said:


> I paid to have a 40' palm taken down in my backyard.  Pain in the butt, trimming and pulling up all the little wannabe palm trees that self plant all over.  I can see many many palms here but none in my yard NOW!!



There is always a price to be paid for living in paradise - I learned that in Key West.


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## DizzyBritches

AZ_Jim, I can't even imagine. My brother-in-law has old pictures of the wreckage from when a tornado did pass through Fargo in the 1960s or 1970s. I believe it leveled his high school.


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## Bobw235

AZ Jim said:


> Bob, you are a fellow Seinfeld aficionado.  That was a funny episode.


I loved Seinfeld, but I'm far from an aficionado. That said, the episode you mentioned was hilarious and that line has always stuck with me.  That show was famous for funny lines that just live with us today.  Perhaps a good idea for a new thread.  

https://m.youtube.com/watch?v=Oj3VphK9AMk


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