7 of America's Most Affordable States to Retire - And None of Them Are Florida (2023)

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7 of America's Most Affordable States to Retire - And None of Them Are Florida? ›

A new study identifies a rugged group of states — Wyoming, Utah, Montana and Idaho — as the most affordable destinations for American retirees.

A new study identifies a rugged group of states — Wyoming, Utah, Montana and Idaho — as the most affordable destinations for American retirees.

Once thought of as the ideal place to live out one's golden years, Florida is quickly losing favor with retirees. Remote workers and the wealthy are flocking to the state and driving up home prices, leaving those on a fixed income feeling the pinch.

The top five states where your money will go further are Alabama, South Carolina, Tennessee, West Virginia and Wyoming. While Wyoming ranks in the top ten for quality of life, the other four are at the tail end of the list, it and the others are laggards with respect to health care when compared to the other states.

Ecuador. If you're looking for a country where you can retire outside the US comfortably with $800 per month and experience one of the most ecologically diverse places in the world, then Ecuador might be for you. The go-to city for US retirees in Ecuador is Cuenca, which also happens to be a UNESCO World Heritage site.

1 state to retire for high quality of life: Massachusetts. Massachusetts is the best state for retirees based on the quality of life. While the state ranked in the bottom half of the list for affordability, it scored top marks for health care, coming in at second place.

Fortunately, there are some states that don't charge taxes on retirement income of any kind: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming.

“In addition to inflation, housing prices and increasing costs of living in Florida, retirees are also leaving for other reasons,” says Dutch Mendenhall, Founder of RAD Diversified REIT. “Higher auto and home insurance along with a 7% sales tax on already high-inflation goods can put a strain on retirement income.”

The best state to retire: Vermont

Vermont quietly has a lot going for it, including very good scores in public health, crime, quality of life, and cost of living. It also has lower-than-average housing costs as well as reasonable taxes for retirees.

20 States That Are Better Than Florida For Retirees Florida has been a popular state for people to retire to but Rhode Island, Delaware, and Ohio may also be great states for retirees. Florida has been a popular state for people to retire to. But Rhode Island, Delaware, and Ohio may also be great states for retirees.

Where to retire on $3,000 a month? ›

Panama. Named to the top spot of “Best Places to Retire in 2022” on International Living's Annual Global Retirement Index, Panama has become a popular retirement destination.

According to data from the BLS, average incomes in 2021 after taxes were as follows for older households: 65-74 years: $59,872 per year or $4,989 per month. 75 and older: $43,217 per year or $3,601 per month.

Whether you can retire on $3,000 a month depends on several factors, including your living expenses, retirement savings, and Social Security benefits. If you have a low living cost and can supplement your income with a part-time job or a generous pension, then retiring on $3,000 a month is certainly possible.

“We realized no one had done a comprehensive quality-of-life comparison between states; other studies made comparisons across countries only.” Massachusetts and Minnesota were the two states with the highest living standards in the U.S., according to the study.

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

1. Alaska. Alaska is the most tax-friendly state for retirees because it has no state income tax or tax on Social Security. And its sales tax rate is the fourth lowest on our list - fifth lowest in the U.S. But keep this in mind: The cost of living in Alaska is higher than in most states.

At what age are pensions not taxable? ›

If you receive pension or annuity payments before age 59½, you may be subject to an additional 10% tax on early distributions, unless the distribution qualifies for an exception.

Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after the age of 70, this isn't the case. In reality, Social Security is taxed after age 70 if your income exceeds a certain level.

The other reasons that people leave the state after moving here are varied: “A nearly 14,000-member Facebook group for people moving out of Florida has cited severe weather, low wages, crowded beaches, changing politics, and steep housing prices as reasons people left.”

Cape Coral / Fort Myers

Cape Coral/Fort Myers tops this list for recreation and entertainment, offering a wide spectrum of activities for every retiree. It's home to the most active retirement communities in Florida.

With its beautiful weather and Gulf of Mexico beaches, Naples and the entire Fort Myers area is one of the best places to live in Florida for retirees. Naples is a quiet area, with many choices in active retirement communities.

The United Arab Emirates claim the top spot for the happiest place to retire. The study reveals that the United Arab Emirates is the happiest place to retire with an overall score of 7.76. It comes as no surprise that with the average yearly temperature being 27 degrees and 3,508 hours of sunshine, they came out on top ...

Pennsylvania and Florida towns took top spots for places to retire, according to U.S. News & World Report. The yearly list of Best Places to Retire in the U.S. named Lancaster, Pennsylvania as the No. 1 place to retire for 2023.

Florida was the most popular destination, followed by North Carolina, Michigan, Arizona and Georgia. About 1 in 8 retirees who relocated out of state reported doing so to cut housing expenses, up from 1 in 15 in 2019.

Share: The waterfront hamlets of Satellite Beach and Marco Island top our list of the safest places to live in Florida in 2023, while the safest large cities in Florida are Cape Coral and Port St. Lucie. Whether you're just starting a family or retired, safety is always a major concern when searching for a home.

The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.

Can I live off Social Security alone? ›

Living on Social Security alone is not only possible, but many retirees already accomplish that very feat every year. While the lifestyle associated with Social Security income isn't exactly luxurious, it doesn't have to equal rice and beans for the rest of your life, either.

Iceland. Canada might be closest; but, if you sail east a little more than halfway between North America and Northern Europe, you'll hit Iceland, which has claimed the title of the safest country in the world every year since the mid-2000s.

Montevideo, Uruguay

It has also ranked the highest among the Latin American countries in the Human Development Index, which evaluates per capita income, education levels, and the average life expectancy of the residents.

Likewise, the cost of living is lowest in states including Mississippi, Oklahoma, and Alabama, and yet these states fall in the national rankings due to factors such as higher senior poverty rates and Medicare spending.

1. Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.

That means that many will need to rely on Social Security payments—which, in 2021, averages $1,544 a month. That's not a lot, but don't worry. There are plenty of places in the United States—and abroad—where you can live comfortably on $1,500 a month or less.

What is the average Social Security check? ›

According to the Social Security Administration (SSA), the average monthly retirement benefit for Security Security recipients is $1,781.63 as of February.

The average Social Security benefit amount for a retired beneficiary at age 65 was $1,389 per month in December 2021, according to the most recent data available from the Social Security Administration. Social Security Administration. Annual Statistical Supplement, Table 5.

The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.

In a study of retirees with less than $1 million in assets, EBRI found wealthy retirees tend to have several things in common. They tend to have paid off their homes and don't have credit card debt or auto loans. They also have more than $320,000 saved for retirement — though what each household needs will vary.

It can be possible to retire on your benefits alone, then, if you're able to decrease your expenses significantly. Also, if you're married and your spouse is entitled to Social Security (either based on their own work record or through spousal benefits), that can make it easier to retire on Social Security alone.

In its report, Niche also ranked the cheapest places to live in the U.S. At the top of the list this year is Brownsville, Texas. Brownsville has been steadily rising in Niche's Lowest Cost of Living ranking over the past few years, placing number six in 2021, number three in 2022 and finally, number one in 2023.

Mississippi. Mississippi has the lowest cost of living in the United States. With a cost of living index of 83.3, expenses are nearly 17% less than the national average. Mississippi's housing costs are the lowest in the nation.

Based on the cost of living index – which measures the relative cost of goods and services in a particular location – the cheapest states to live in are Mississippi, Oklahoma, Kansas, Alabama, and Georgia. These states have a cost of living index below 89, which is significantly lower than the national average of 100.

According to their methodology, America's cheapest city is Harlingen, Texas, a small city of less than 72,000 people at the southern tip of Texas near the Mexican border.

What is the number 1 place to live in the US? ›

Topping the 2023-24 list: Green Bay, Wisconsin. The magazine called Green Bay "The perfect mix of big-city amenities complemented with a Midwestern, small-town feel."

1 best U.S. city to live in is Cambridge, Massachusetts—see which other cities made the list. Niche released its list of the best U.S. cities to live in 2023.

MoneyGeek's analysis found that Wyoming is the most tax-friendly state in America, followed by Nevada, Tennessee, Florida and Alaska. States that received a grade of A all share something in common: no state income tax. Washington and South Dakota — which both received a B — also have no state income tax.

1. Delaware Taxes. Congratulations, Delaware – you're the most tax-friendly state for retirees! With no sales tax, low property taxes, and no death taxes, it's easy to see why Delaware is a tax haven for retirees.

Regarding affordability, the report indicates that Connecticut, Massachusetts, and New Jersey are the most affordable states with Arizona, Nevada, and Florida being the least affordable. The researchers came to this conclusion by using features such as credit score, mortgage debt, paid family leave, and median income.

Is it expensive to live in Florida? Though the state has long had a reputation for being an inexpensive place to live, housing costs are high. Rents and sale prices are both well above national averages. However, the overall cost of living in the state is about on par with the national average.

1. Hawaii. Hawaii is truly a paradise, but it is also the most expensive state in America to live in. The cost of living in Hawaii overall is 86% higher than the national average, and the cost of housing in Hawaii is a jaw-dropping 207% above the national average.

“We realized no one had done a comprehensive quality-of-life comparison between states; other studies made comparisons across countries only.” Massachusetts and Minnesota were the two states with the highest living standards in the U.S., according to the study.

Most affordable? Mississippi, with housing 61% cheaper than the Golden State. Then comes Alabama, Arkansas and West Virginia at 60%, Kentucky at 56% and Oklahoma and South Dakota at 55%.