Nevada. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Among its health-related strengths, the state. An additional 21 states don't tax military retirement pay but do have state personal income tax, which is why you might consider them the best tax-friendly states for military retirees. North Carolina 4. There is a high ratio of doctors per capita, good air quality and a low serious crime rate. There is no state estate tax. Same for what the best states are to retire to. 3. That number is higher in states like Connecticut, where the average person has a retirement balance of roughly $520,000. Weve got the normal entertainment youd find everywhere and we get pretty decent Broadway tours if youre into that. Lancaster, Pennsylvania. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. There is also a state estate tax. We offer large metropolitan areas and beautiful countrysides. When delaying your RMDs might not be the best idea . The University of Arkansas offers free tuition and fee waivers to senior citizens at its flagship campus in this Ozarks city 200 miles northwest of Little Rock. New Jersey #2. The serious crime rate is above the national average. Oregon 9. For its report, WalletHub compared all 50 states based on 47 measurements within three categories: affordability, quality of life and health care. Georgia, Michigan, Ohio and Missouri all made the top five best states for retirement. Also only 45 minutes away from Cheyenne or Ft. Collins, recommends one Redditor. But there's good news: As of early 2022, federally taxed Social Security income is officially deductible for those 65 and older. The states crime rate is also fairly low, according to The Motley Fool. According to a 2021 report from the Health Policy Institute of Ohio, the state tanks for population health (which includes metrics like adult smoking and heart disease mortality), health care spending and prevention. It is very bikeable, although not as walkable. Plenty of golf courses, if that's for you. Washington. I semi-retired in Charleston five years ago after working full-time here since 2011. Some say the grass really is greener in the Bluegrass State which offers plenty of perks aside from horses and fine bourbon. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. A city with a large infrastructure for retirees, Gainesville has abundant doctors and good air quality. Alabama T-3. Elevation is 140 feet. There are as many opinions on retirement as there are places to retire, especially in a country as large and diverse as the United States. Delaware #6. Real estate comes pretty cheap in Indiana, plus property taxes dont amount to much either. After all, 26% of non-retirees have no retirement plan at all, according to a 2021 report by the Federal Reserve. One factor we now consider disqualifying is a very high susceptibility to climate change and natural hazards as measured by the Federal Emergency Management Agencys new National Risk Index, which looks at 18 natural hazard risks, plus communities preparation for and ability to cope with them. Wisconsin. I have a 2,400-square-foot, four-bedroom, three-bathroom, all-brick house sitting on 1.25 acres. We do take into account a variety of quality-of-life metrics, ranging from air quality and availability of doctors to the crime rate and a towns walkability. Best State vs. However, property and sales taxes tend to be higher than average. By Liz Brumer-Smith - Feb 23, 2022 at 7:00AM Key Points. So, whether youre reading an article or a review, you can trust that youre getting credible and dependable information. A recent Vanguard study revealed a self-managed $500,000 investment grows into an average $1.7 million in 25 years. Plenty of farms also, although they are increasingly larger and larger and run by fewer and fewer people, writes noshelter on Reddit. The Treasure State features stunning vistas and clear-blue lakes and its one of the least populated states in the country. Move over, Florida. South Carolina ranks poorly for its crime and safety it has one of the highest property crime rates in the country and health care, but its relatively affordable to live in. Georgia is ranked high for being tax-friendly to retirees. It is freakin beautiful here! Here are the 25 greatest states to retire in 2022, ranked from average to best. (iStock). Should you accept an early retirement offer? Virginia is tax friendly for retirees and offers a wealth of green spaces and beaches whats not to love? Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. It was a good fit for us, says David. Louisiana. The state income tax rate is a flat 4.25%, but it excludes Social Security income and some pension income and theres no state estate tax. I showed her around one community, and she fell in love with it., (Are you planning to retire in 2022? Florida. As it turns out, Ashland and the two other finalists in the Griffiths search, Santa Fe, N.M., and Boulder, Colo., all earned spots on Forbes new list of the 25 Best Places To Enjoy Your Retirement. Austin is very bikeable and somewhat walkable. Flagstaff has a relatively high (but not very high) risk of natural hazards, according to FEMA. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Do these seven things now, Why Florida is Bankrates best state for retirement in 2022, The best and worst states for driving: All 50 states, ranked, Why Georgia is Bankrates best state for retirement in 2021, One of the least populated states should be Americas hottest retirement destination heres why, California Consumer Financial Privacy Notice. A new, lower flat income tax rate will take effect in 2023. Homebuyers are paying nearly 50% more on their mortgage bill than last year. Even though Texas and Florida have no income tax, they do have higher homeowners insurance costs because of hurricanes. Those are deeply personal questions. Still, on average, people across the U.S. have roughly $400,000 dollars to nest on. Here's a look at the Best Places. At an elevation of 20 feet, Charleston is moderately walkable and very bikeable. Oklahoma Bonsales / Shutterstock Average annual benefit in 2022: $19,393.40 In Oklahoma, 551,853 retirees are getting Social Security benefits in 2021 that average $1,526.08 a month, or $18,312.94 for the year. The weather is great, with an average temperature of 70 degrees. Alaska Best Places For Tax-Friendly Social Security Treatment process and giving people confidence in which actions to take next. editorial policy, so you can trust that our content is honest and accurate. Other pluses include a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. The city enjoys a higher number of doctors per capita and good air quality. Naples, FL 3. Despite an elevation of just 10 feet, Hilton Head has a moderate FEMA rating for natural hazard risk. To determine the best states to retire, WalletHub examined a few key factors like affordability, health care . The Gem State really says it all in the name residents brag of their friendly neighbors, Idahos scenic beauty and outdoor activities and the low cost of living. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Property and sales taxes are relatively low and Social Security benefits dont get taxed at all. A Red Ventures company. Which certificate of deposit account is best? Maine's summer is made for retired people. 2023 FOX News Network, LLC. Theres an Osher Lifelong Learning Institute at San Francisco State, a high ratio of doctors per capita and good air quality. There's no better time to retire than 2022 when life expectancy is at its all-time high of 79.05 years.However, choosing the best states to retire from a list of 50 is no easy feat. Score fresh maple syrup and ski down snowy slopes in the Green Mountain State, renowned across the country for its natural splendor. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. It also ranks as No. Home prices have shattered one record after another since the COVID pandemic began, and inflation rocked the U.S. economy in 2022. California 48. Weve maintained this reputation for over four decades by demystifying the financial decision-making The lower the score, the higher the state ranks as a retirement destination. If youre interested in Florida or Arizona or California, stay there for a while and see if you like the climate at the time of year youre going to be living there. How much should you contribute to your 401(k)? The Peace Garden State has one of the highest numbers of hospital beds per capita and plenty of eldercare organizations and services available to the public, according to WalletHub. South Dakota. If you retired in 2022 or are going to retire in 2023, find details below on which state you may consider retiring in if your main source of income is from Social Security retirement, . Its hard to make a blanket statement. Other pluses include good air quality, a low serious crime rate and a high number of doctors per capita. Virginia's average combined state and local rate of 5.75% is the 11th-lowest in the nation. There is no state income or estate tax. 10 Tax Breaks for People Over 50. 2022's Best States for LGBTQ+ Retirees. Melbourne, FL 5. To identify the most retirement-friendly states, WalletHub researchers compared the 50 states across the key dimensions of affordability, quality of life and health care. How will your income be taxed? Santa Fe has a high number of doctors per capita, good air quality and a low serious crime rate. Drive 45 minutes and youll have something completely different, writes Boise resident Matt Roderick on Quora. It also scored third place on both WalletHubs and The Motley Fools tax rankings there are no sales taxes, property taxes are quite low and Social Security is only partially taxed. Theres a wide variety of outdoor activities available on water and on land, including some 54 area golf courses. Hello All, Welcome to my channel!Today we are examining which states are the best to retire in 2022. Outdoor experiencesforests, parks, hiking terrain and whitewater paddlingand in-town culture abound around this scenic city in the Blue Ridge Mountains region of western North Carolina. Cheap housing costs, low crime rates and low taxes attract plenty of retirees to Kentucky. Plus, the state wont tax your Social Security benefits and provides a tidy deduction for those who depend on other forms of retirement income as well. Despite getting some bad press, Oregons largest city has a lot going for it. The state ranks relatively well for health care, but lags behind for its elder abuse protections. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Oregon has no sales tax but makes up for that with an income tax rate that hits 8.75% at just $18,400 of income for joint filers (with Social Security excluded) and tops out at 9.9% for taxable income above $250,000. When they were ready to retire, Karen and David Griffiths sold their Spanish-style Los Angeles home and moved 700 miles north to a 134-year-old Eastlake Victorian in Ashland, Ore., with 11-foot ceilings, bay windows, a covered porch and views of the surrounding mountains. Wyoming might be Americas most sparsely populated state, but it could be ideal for a retiree trying to escape the bustle of big cities and seeking adventure in the outdoors. The state was dragged down by back-of-the-pack scores in affordability and weather. We pay an extra $500 per month. Large enough for us and our dogs plus lots of room for company, writes Brian Trapp on Quora. By Sara Ventiera. Iowa offers a lower cost of living, better healthcare, and lower home prices, making it safe and affordable. You can really get some bang for your buck, housing wise. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.