With the average retirement age being 65 – and with approximately 10,000 individuals turning 65 every day – more and more Americans are retiring than in previous years. In fact, a March 2018 Census Bureau report forecasts that within the next decade,12,000 individuals will turn 65 each day – with one in every five U.S. residents being over the age of 65.
Some of these retirees have established nest eggs and won’t face much financialhardship, but the vast majority of Americans do not. Retiring will require strict budgeting – with housing and healthcare likely being the two most expensive costs. But that doesn’t mean you can’t find a place to live that is affordable, fun and offers other great amenities for retirees.
The following four states are great to consider if you plan to retire and need to stick to a tight budget:
Not surprisingly, Florida ranks high on the list of states to retire to on a fixed income. There is no state tax, the weather is warm which allows for various outdoor activities, and there are cities and towns throughout the state that offer affordable living.
Furthermore, according to HealthMarkets, Florida ranked number 5 in their study on average costs of Medicare Advantage (Part C) plans, with the total average cost at $5,647.83.
With an estimated 17.8% of its residents aged 65 or more, Pennsylvania is another state to consider for retirement. Additionally, the state is pretty tax-friendly toward retirees as they do not tax Social Security benefits, public or private pensions or income from a 401(k) or IRA account.
Furthermore, there are four seasons, several historical landmarks to visit and for those who like to travel, Pennsylvania is both home to and ideally situated near a few great East Coast cities.
With a pretty central location in the country, affordable housing and generally great weather, Tennessee is definitely a place to consider for retirement. In fact, the cost of living is approximately 12% below the national average and average healthcare costs for a retired couple are about $20k less than the national average. Plus, if you plan to work in retirement, your earned income won’t be taxed!
With mountains, desert, a few big cities and many smaller communities throughout the state, Nevada is another great choice for retirement. Another perk is that the state is very tax-friendly for retirees, with no state taxes on income or Social Security benefits, and withdrawals from retirement accounts and public/private pension income are also not taxed.
From a healthcare cost perspective, Nevada had the lowest average Medicare Advantage (Part C) costs (according to HealthMarkets study).
When it comes time to decide where you want to spend your later years and if you know you’ll be on a budget, do your research, plan ahead and know there are plenty of great and affordable places out there for you to enjoy!