The best places to retire in the U.S.

Dreaming of the perfect place to retire? You’re not alone: an estimated 4.1 million Americans will turn 65 each year between 2024 and 2027, making the question of where to spend your retirement years more relevant than ever.¹

What do you envision for your retirement years—warm weather, golf courses, more time with grandkids or relaxing afternoons by the pool? As you picture the “what” of retirement, the “where” naturally begins to take shape.

While finances, cost of living and taxes are important, there’s more to choosing the best place to retire than numbers alone. For example, once you’re retired, being close to the office or in a certain part of town probably won’t matter as much.
 

A location that fits your lifestyle

When choosing the best place to retire, what will matter is being near the things that make life convenient:
 

Everyday conveniences

• Grocery stores and farmers market
• Pharmacy
• Banks and post office
• Hair salon or barber
• Public transportation, if needed

Healthcare and wellness

• Primary care physicians and specialists
• Hospitals and urgent care centers
• Physical therapy, chiropractic or rehabilitation facilities
• Gym or fitness center
• Nature center or walking trails

Leisure and lifestyle

• Restaurants
• Golf courses, tennis courts, etc.
• Parks, beaches or walking trails
• Library, movie theater or symphony

Social connections

• Family and friends
• Senior center
• Place of worship

You’ll also need to consider safety and accessibility. Be sure to consider:

• What is the crime rate in the area?
• Does the neighborhood have adequate street lighting?
• Are there crosswalks and sidewalks?
• Do you have an option to modify the home with a wheelchair ramp or elevators, if needed?

Of course, convenience and safety are only part of the equation—access to quality health care is equally essential.
 

Health care in retirement—more important than ever

Like it or not, we all need to accept that doctor’s visits might become more than just “routine” as we get older. The availability of quality health care, and—potentially—assisted living facilities will become crucial. And, let’s face it: living longer is not only attainable, but also increasingly a reality.

As part of your decision-making process, be sure to investigate the services available in the area that you’re considering.
 

Best states to retire in for taxes

You’ve been paying taxes all your working life, so why would you want to pay more in retirement? Unfortunately, they’re still part of the picture.

Several states offer little or no income tax, but other taxes (like grocery, clothing or alcohol) may be higher. Remember, states need to pay their bills too, so the collection of revenue is necessary one way or another.

Related: Taxes are like jelly beans

Moving to a state with lower income tax may seem appealing at first glance, but other costs may actually be higher. Let’s look at the benefits and overall tax burden that come with the nine income tax-free states.
 

States with no income tax

Capital gains implications

In any relocation scenario, a capital gains tax on the sale of your home is worth noting. Depending on your situation, selling your home may trigger capital gains. However, selling a home that was your primary residence in at least two of the last five years allows gains of up to $250,000 tax-free. That goes up to $500,000 for a married couple.²
 

Senior living communities

For decades, millions of retirees have chosen self-contained retirement communities or age-restricted neighborhoods filled with activities, pools and like-minded neighbors. It’s easy to see the appeal: a safe, lifestyle-focused environment that offers a break from the hustle and bustle of everyday life—often with resort-style amenities. But you’ll likely pay a premium for all that access.

So, what kinds of activities do you look forward to on a daily, weekly or monthly basis? Do you want convenient access to outdoor fun, social events or clubhouse parties?

As you narrow your options, think about the life you want and choose a location that complements your retirement dreams. And don’t forget to visit potential communities in person; there’s no substitute for walking the grounds, meeting residents and experiencing the amenities firsthand.
 

Make the smart moves before you move

As you consider the best place to retire, here are a few helpful resources to support your retirement planning:

• How to become debt-free before retirement
• Potential average income needs during retirement
• Choosing an income protection option that can last a lifetime

Deciding where to spend your retirement years requires reflection and planning, but you don’t have to do it alone. A financial professional can help you evaluate the costs of relocating, joining a retirement community or staying where you are—and guide you through the ins and outs of managing your money to support the lifestyle you envision.

Learn more about how an annuity from Jackson might fit into your retirement goals, and talk with your financial professional today.