You’ve probably seen dozens of lists of places to retire in, but they
seldom focus on financial factors, which are important when you live
off your savings. Due to warm weather, beaches, and the absence of a
state income tax, locations in Florida are heavily over-represented on
most such lists – I even included one here.
But I took the liberty of assuming that not everyone wants to live
out their golden years in the Sunshine State, and broadened the list to
cover the country. On this list, I zero in on the
tangible financial and economic benefits
for retirees, because you shouldn’t be spending your golden years worrying about bills.
Here are the five criteria I use in deciding which cities are best for retirees financially.
1.
Cost of living. An index of 100 represents the U.S. average. The cities listed here have a range from 88 to 116.
2.
Overall tax burden by state, taking in income, sales, real estate and other taxes. The national average is 9.9 percent of income, while the tax rates of some of the cities here are lower than 9 percent.
3.
Median house prices.
Some cities on the list have home prices higher than the national
average, $198,500, but are still relatively low in their respective
parts of the country.
4.
Weather, natural amenities, and cultural environment.
While preferences for temperatures and things to do differ, they can
translate into lower living expenses. For example, a mild climate
usually means lower utility bills. And an abundance of local attractions
reduces the need for travel.
5.
Strength of the job market as determined by unemployment rates.
Retirees often return to the job market because they need the money or
have too much time on their hands. In addition, strong local employment
also creates investment opportunities close to home, particularly in
rental real estate.
With that in mind, on to the list.
Source: iStock
Omaha, Nebraska
The cost of living in Omaha is well below the national average, and
the median house price is only a little bit more than 75% of the U.S.
average. This home city of Warren Buffett offers low-cost living,
combined with rising economic opportunities and an increasing number of
cultural amenities.
Source: iStock
Sarasota, Florida
No list of cities to retire would be complete without at least one from Florida. It has
no state income tax,
a benefit to retirees looking to stretch their nest eggs further.
Year-round warm weather keeps heating bills low. Although house prices
in Sarasota are above the national average, they are still lower than
many other popular retirement havens in Florida.
Source: Thinkstock
Austin, Texas
Austin is a city of rapid economic growth yet with a
lower-than-average cost of living. Texas also has no state income tax,
which makes the overall tax burden the second lowest on this list, at
7.9 percent. Because of the booming economy and population growth,
Austin’s house prices are above the national average. The unemployment
rate is far below the national average, great for people who need a
post-retirement job.
Source: iStock
Charleston, S.C.
An historical seaport and beach community, Charleston offers a rich
array of entertainment and cultural amenities. Like most other cities on
this list, Charleston combines a low cost of living and relatively low
taxes. House prices are above the national average, with a median of
$225,000, but that’s still a bargain for a coastal city with a mild
year-round climate.
Source: iStock
Nashville, Tennessee
You just have to love those states that have no income tax, and
Tennessee is one of them. The capital of country music has the lowest
overall rate of taxation on this list, plus a well-below-average cost of
living, and house prices. The economy is strong, with a growing
health-care, education, and automobile assembly industries.
Source: iStock
Des Moines, Iowa
Des Moines is another city in the Midwest that sees steady growth in
both population and its economy. Despite that, the cost of living in Des
Moines is 10 percent lower, and house prices 20 percent lower, than the
national averages. It is the third-largest insurance center in the
world, and has a significant number of jobs in both finance and health
care.
Source: iStock
Atlanta, Georgia
While big cities are not generally good places to retire, Atlanta is
an exception. In addition to a below-average state tax burden, retirees
enjoy a major tax benefit: $35,000
retirement income exclusion.
This includes taxable investment income, pensions, and income from
rental property. The cost of living and median house prices are both
below national averages.
Source: iStock
Manchester, N.H.
People don’t normally think of chilly New England for retirement, but
Manchester is well worth a close look. While its overall cost of living
and house prices are higher than national averages, the city is much
affordable by Northeastern standards. Though real estate taxes are
fairly high, the state has neither an income tax nor a sales tax. And
the city’s low jobless rate virtually assures that there will be a job
available, if you ever decide to come out of retirement.
Source: Thinkstock
Salt Lake City, Utah
Salt Lake is another location that combines low cost of living with a
strong and growing economy. At 4.3 percent, the unemployment rate is
more than one third below the national average. Employment is
broad-based, including government, education, health care,
transportation (the city’s airport is one of the busiest of the nation),
as well as business and professional services.
Source: Thinkstock
Asheville, N.C.
If you’d like to retire to a mountain region, Asheville is worth
checking out. The city features beautiful scenery from the Blue Ridge
Mountains and mild climate comparable to Atlanta. In regard to cost of
living, tax burden, and house prices, Asheville is right about at the
national average in each category. The jobless rate is low. The local
economy is solid with opportunities in education, health care, retail,
and tourism.
Culled from
AdviceIQ
