One of the great things about retirement is the freedom you can experience in your life. Not only can you determine your own schedule, seven days per week, because you aren’t tied to a desk anymore; you can even live wherever you want to! And that’s great news with the cost of living rising so rapidly in many locations.
If you’re curious about the cost of living in other states, check out these five states that are said to be the most affordable for retirees.
West Virginia. Just this year, the state of West Virginia eliminated their state income tax on Social Security benefits. Combined with a cost of living that is 9.5 percent lower than national average, low average home prices ($136,675), low average Medicare premiums ($59.74 monthly), and a reasonable combined sales tax rate of 6.52 percent, West Virginia is set to become a popular destination for retirees.
Arkansas. The state of Arkansas boasts a cost of living at 10.1 percent lower than the national average, thanks to low housing costs and very low average Medicare premiums ($44.34 monthly). The state does have a higher sales tax rate than average, so keep that in mind if you’re a big spender.
Iowa. With a cost-of-living index at 11.9 percent below average, it’s no wonder so many retirees have chosen Iowa for their new home. The state offers numerous income tax benefits, such as a low flat rate of 3.9 percent, and a complete exemption on income from taxable pensions, annuities, and IRAs for those aged 55 and older.
Oklahoma. The cost of living in Oklahoma falls more than 15 percent below the national average. Plus, Social Security income is completely tax-deductible, and the first $10,000 of your retirement benefit is exempt from taxation.
Mississippi. The state of Mississippi is ranked as the most affordable state in the nation, thanks to a cost-of-living index that falls at 16.9 percent below the national average. With more expendable income, you can enjoy everything the state has to offer. And considering the mild winters, you can enjoy time outdoors year-round.
If you’re considering a move in retirement, make sure to consult with us first. We can help you evaluate all of the factors that might affect you, so that your new state hopefully doesn’t give you any unpleasant surprises.