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I can assure everyone that for every person who says that they will never live south of the Mason-Dixon line, there are at least twice that many who say they will never live NORTH of the Mason-Dixon line! And that's a conservative number. More likely it's 4 or 5 times as many.
Right.
No sales tax might be great, but see how that's being made up for in other taxes. A bad winter might be okay if the cost of living is low enough to let you spend part of the winter elsewhere.
Remember, too, that for some people, it's best not to move to a new place for retirement. Consider where your loved ones are and be sure you won't end up feeling isolated and far from friends or family.
really depends a lot on income amounts and sources...
but (with low income / low housing costs...) the general USA answer is:
Mississippi
Arkansas
Oklahoma
West Virginia
Indiana
Louisiana
Kentucky
Missouri
Alabama
Tennnessee
Not all specifically in order, since needs vary as do localities.
Of course many won't consider a retirement home east of the Mtn Time Zone (summer Humidity and heat / downwind pollution, public Open Space....)
Then there are those who require services (including specific HC or state assistance), which the top 10 can be limited.
Culture, terrain, family, travel, recreation...
Lots matter, much far more important than cost. (to some)
Several Texas retiree neighbors have been fleeing to NW Arkansas, Take the money and run, while still able! (equity and income tax free previous wage / investment earnings)
I suspect the BEST financial choice will change at least 4-6x during my retirement (due to my income source changes, and personal needs, and state regs)
Quote:
Originally Posted by marino760
There are probably at least a dozen different lists out there regarding this....
-cheapest overall state
-cheapest state to buy a house
-cheapest state to retire in
Here's one I just googled...the cheapest states in America 2020. Mississippi usually comes in 1st place.
Mississippi
Arkansas
West Virginia
Tennessee
South Dakota
Alabama
Kentucky
Ohio
South Carolina
Indiana https://www.homesnacks.com/cheapest-...%20Indiana.%20
Looking at these two lists, the phrase “you get what you pay for” comes to mind. Personally, my list of requirements as to where I live has cheapest near the bottom of that list.
Funny thing is now that you made me think about it, my retirement house is 2 short blocks or a 5 minute walk south of the Mason Dixon line. Coincidentally, it's in Mason County, LOL.
No sales tax might be great, but see how that's being made up for in other taxes.
Agreed. A retiree who chooses a state because it is cheap needs to consider their own expenses. Sales tax usually isn't on food so are non-rich retirees gonna be spending a lot on non-food? Well maybe alcohol lol.
Florida didn't make any of the previous lists but many of the normal county/city taxes get paid by tourists and there are many locations in Florida with lost cost housing with low taxes. Little cold weather means cars and old people last longer (no salt on roads, no shoveling snow and falling ending up in ER).
That's why so many people move to Florida, not Wyoming.
And I totally agree with not moving away from support system like family or friends unless you absolutely must. Some urban locations have rent subsidized housing that can be great for low-income seniors. You won't find that in poor states or low-populated areas. I knew a woman who left Florida and moved to Philly area and got great apartment at very low rent.
Agreed. A retiree who chooses a state because it is cheap needs to consider their own expenses. Sales tax usually isn't on food so are non-rich retirees gonna be spending a lot on non-food? Well maybe alcohol lol.
Florida didn't make any of the previous lists but many of the normal county/city taxes get paid by tourists and there are many locations in Florida with lost cost housing with low taxes. Little cold weather means cars and old people last longer (no salt on roads, no shoveling snow and falling ending up in ER).
That's why so many people move to Florida, not Wyoming.
And I totally agree with not moving away from support system like family or friends unless you absolutely must. Some urban locations have rent subsidized housing that can be great for low-income seniors. You won't find that in poor states or low-populated areas. I knew a woman who left Florida and moved to Philly area and got great apartment at very low rent.
Well, that's not all necessarily true. The town I'm retiring to has low cost senior housing. It looks like a nice complex and is just down the street from my house. Population of the town is under 9000. There is also free public transportation for seniors.
As mentioned, statewide averages are of limited use.
Here's another approach. Start with states that have no sales tax, and do not tax SS benefits (including states with no income tax at all). There are three: Alaska, Delaware, and New Hampshire.
Alaska is not known to be a cheap place to live so let's scratch that one. Take one or both of the other two, if they interest you, and look for a locale (likely distant from big population centers) with properties in your price range.
As mentioned, statewide averages are of limited use.
Here's another approach. Start with states that have no sales tax, and do not tax SS benefits (including states with no income tax at all). There are three: Alaska, Delaware, and New Hampshire.
Alaska is not known to be a cheap place to live so let's scratch that one. Take one or both of the other two, if they interest you, and look for a locale (likely distant from big population centers) with properties in your price range.
For myself, I found property taxes to be much more important than sales taxes. You can control sales taxes to some extent by controlling your spending. I'm still in CA for another month and the sales tax here is somewhere between 9 and 10 percent. I still pay very little because I don't buy much. I'd have to spend $100,000 a year to pay $9000 in sales taxes.
Property taxes are a whole other animal. Once you buy your house, those taxes are out of your control and if you're not careful you can end up paying tens of thousands every year in property taxes just for a simple little house.
I am sure countless people here have already crunched the numbers and done the math. Bottom line: which states are the cheapest for retirees taking into consideration housing costs, COL, taxes (including on retirement income), etc.?
There is no "cheapest for retirees" since everyone has different finances and different needs.
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