What are the most affordable retirement states?

If there’s one thing that we can all agree on, it’s that saving money in retirement is always a win. While some people may have a preference for a beach retirement in a state like Florida or Georgia or a desert retirement in a state like Arizona or New Mexico, at the end of the day the one universally loved quality in a retirement state is that it’s affordable. Affordability is particularly important for retirees as many seniors live on a fixed income and need to make sure that their retirement savings last as long as possible. Below, we detail some of the most affordable retirement states in the country. While each state has its own unique retirement benefits, they all provide for a budget-friendly and low cost retirement. To learn how you or your senior loved one can have the most affordable retirement possible, read more below or reach out to the Sunbound team for more information.

Florida

Florida is a well-known retirement destination for many reasons, one of which is its tax-friendliness towards retirees. The state of Florida does not impose a state income tax on its residents, which can be a significant advantage for retirees. This means that retirees can keep more of their retirement savings and Social Security benefits, which can go a long way in making their retirement more affordable. Additionally, Florida has a relatively low cost of living compared to other states, which is another reason why it is an affordable retirement destination.

Furthermore, Florida has several tax exemptions that benefit retirees. For example, there is no inheritance tax or estate tax in Florida. The state also offers homestead exemptions, which can reduce property taxes for homeowners who reside in their homes for at least six months out of the year. Additionally, seniors who meet certain income requirements can benefit from a senior property tax exemption. All of these tax exemptions and advantages can add up and make a big difference in the affordability of retirement in Florida.

Arizona

Arizona is another state that has earned its status as a popular retirement destination due in large part to how affordable it is to retire in Arizona. One of the factors that make Arizona a budget-friendly retirement destination is the tax-friendliness it offers to retirees. The state does not tax Social Security benefits, which is an advantage to those relying on it as a primary source of income. Additionally, Arizona has a relatively low cost of living compared to other states, which can make retirement more affordable.

Moreover, Arizona has several tax exemptions and credits that can benefit retirees. For instance, the state offers a property tax rebate for low-income seniors who own their primary residence in Arizona. There is also a credit available for retirees who have income from pensions or annuities. In addition, Arizona's sales tax rate is relatively low compared to other states, which can help retirees save some money on their purchases. All these tax advantages and exemptions, in combination with the state's low cost of living, make Arizona an attractive and affordable retirement destination for many retirees.

Georgia

Returning to the east coast we find another popular and affordable retirement destination in Georgia. Georgia has a relatively low cost of living compared to other states, making it an affordable retirement destination. Housing costs are also relatively low, which is an advantage for retirees who want to stretch their retirement savings. Additionally, Georgia offers several tax benefits for retirees, making it a tax-friendly state for those on a fixed income.

Georgia does not tax Social Security benefits, which can make a significant difference for retirees who depend on it as a primary source of income. Furthermore, Georgia has a relatively low income tax rate, and the state offers a generous retirement income exclusion. This exclusion allows individuals who are 65 or older to exclude up to $65,000 of retirement income from their Georgia state income tax return. Additionally, Georgia offers a homestead exemption, which can reduce property taxes for homeowners who are 62 or older. All of these tax advantages and exemptions, combined with the state's low cost of living, make Georgia an affordable retirement destination for many retirees.

North Carolina

Going up the coast from Georgia we find the Carolinas, two of the most attractive and affordable retirement destinations in the country. North Carolina offers a relatively low cost of living compared to other states, making it an attractive retirement destination for those on a fixed income. Additionally, the state offers several tax benefits and exemptions that can help retirees save money in their retirement years.

North Carolina does not tax Social Security benefits, which can be a significant advantage for retirees. The state also offers a relatively low income tax rate, which can help retirees keep more of their retirement income. Additionally, North Carolina offers a homestead property tax exemption for seniors who are 65 or older. All of these tax benefits and exemptions, combined with the state's low cost of living, make North Carolina an affordable retirement destination for many retirees.

South Carolina

Like its neighbor to the north, South Carolina offers retirees an incredible affordable retirement lifestyle. The state offers a relatively low cost of living compared to other states, making it an attractive option for retirees on a fixed income. Additionally, South Carolina has a friendly tax environment for retirees. The state does not tax Social Security benefits, which is a significant advantage for retirees who depend on it as a primary source of income.

Furthermore, South Carolina offers several tax benefits and exemptions for retirees. For instance, individuals who are 65 or older are eligible for a $15,000 deduction on their retirement income. The state also offers a homestead exemption for homeowners who are 65 or older. This exemption can reduce property taxes for seniors who own their primary residence in South Carolina. Additionally, South Carolina has a relatively low sales tax rate compared to other states, which can help retirees save money on their purchases. All of these tax advantages and exemptions, combined with the state's low cost of living, make South Carolina an affordable retirement destination for many seniors.

Mississippi

Finally we come to Mississippi, which might be one of the most affordable retirement destinations in the entire country. First, Mississippi has some of the lowest retirement taxes in the entire country due to the fact that Mississippi exempts nearly all forms of retirement income from state taxes. Not only does Mississippi exempt Social Security taxes, it exempts most sources of retirement income including IRAs, pensions, and 401(k)s (just to name a few!). Along with these incredibly favorable retirement taxes, Mississippi also has an incredibly low cost of living. While you might not think of Mississippi as a classic retirement destination, for those looking to stretch their retirement dollars Mississippi is definitely an affordability hidden gem. 

To learn more about how Sunbound can help make paying for senior living and senior care more affordable for you or your senior loved one, send us an email at info@sunboundhomes.com or request more information on Sunbound. Sunbound is the best way to pay for senior living and senior care, and we’re on a mission to make senior living and senior care more affordable for everyone.