BY SUZANNE HAZLETT, MBA, CIMA®, CFP®
Dr. Suess said, “You can steer yourself in any direction you choose.” Retirees last year were doing just that as more than 338,000 Americans relocated for retirement – a 44% increase from 2022 – and about a quarter of those retirees moved to a different state. According to the online moving-services marketplace Hire A Helper’s latest annual report, Florida is the number one destination for retirees, claiming 11% of movers across state lines. South Carolina comes in at a close second and New Jersey third, with Texas and Washington rounding out the top five. Let’s explore what’s drawing retirees to these destinations.
TAXES
Three of the five states – Florida, Texas, and Washington – don’t tax residents’ income, which is an obvious draw for people whose earnings may decrease significantly in retirement. While many states don’t tax Social Security benefits, these three won’t tax investment income or 401(k) distributions. New Jersey enables retirees to shield up to $100,000 from state income taxes and offers property-tax relief programs for seniors and people with disabilities.
CLIMATE + ENVIRONMENT
Washington has a relatively high cost of living. Still, it boasts some of the country’s leading healthcare systems, a strong economy, scenic diversity, and various recreational activities.
While Florida has long been known for its affordability, its cost-of-living index has steadily increased as more people flock to its warm climate and white-sand beaches—including younger people who, thanks to remote working, can live in their chosen environment. South Carolina and Texas offer miles of beachfront and mild temperatures but with a significantly lower cost of living.
HOUSING COSTS
Financial concerns were less of a factor in retiree moves in 2023 than the year before. Just 6% of retirees reported moving to find more affordable housing, down from 12% in 2022. This makes sense, considering the median household income of retirees who relocated last year was $88,347 – 35% higher than in 2022 and 17% higher than that of the typical U.S. household.
If you’re considering moving for retirement, consider talking to your financial, legal, and tax advisors about the most essential factors and develop a plan. Each state has different laws and regulations regarding moving. Research your new state, including state income and estate taxes, driver’s licenses, vehicle registration, and business licenses, if applicable.
Sources: HireAHelper.com, Worldpopulationreview.com, AARP.com
Suzanne Hazlett, MBA, CIMA®, CFP®, is a Certified Investment Management Analyst® and CERTIFIED FINANCIAL PLANNERTM professional. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC. HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker/dealer. 675 Sun Valley Road, Suite J1 + J2, Ketchum, Idaho, 83340 208.726.0605 HazlettWealthManagement.com