Best States To Retire: Pension Edition

Retirement really is an art, when you get down to it. There are so many things to consider when you’re planning to step down from an active working role, and managing all of them is a feat.

And we’ve talked about how where you retire can matter more than when. I mean, the U.S. is a diverse place, with diverse laws regarding taxes, retirement funds, and more. Choose the wrong place and all your savings could dwindle to nothing. But choose the right one and you can live while maintaining a good quality of life.

You just need to know how to work their system to your benefit. And we’ve talked about this before in other retirement articles, mostly when it comes to tax benefits or living off of a fixed income.

However, another thing to consider is how choosing where you work is just as important as choosing where you retire, especially if you want that sweet, sweet pension.

After all, a pension is what’s going to help you maintain your lifestyle going forward when you are no longer actively working. But what states are the best to retire in, while also considering your pension? Today we’ll discuss:

• What states offer the best retirement perks
• Why retirement states are a personal choice

What States Make It Easier To Live Off Of Pension

The way pensions are treated across the U.S. differs, with state-centric laws on pensions, taxes, and more. This is why so many people recommend looking into states that make living off of pensions that much easier.

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The criteria to consider here is whether a state taxes social security funds or pensions.

So, what states offer the best benefits when it comes to your pensions?

Florida

Florida is the first state that comes to mind when you think of retirement. Its sunny beaches and warm weather make it the ideal destination for a forever vacation.

But you know what else makes Florida the best retirement state? It’s tax laws. Florida is one of the lucky states that doesn’t tax income which means your pension money and retirement savings remain virtually untouched.

On top of that, it has no estate taxes.

Nevada

Nevada isn’t just all casinos and high rollers, it’s actually a livable location if you’re looking to retire.

For one thing, Nevada doesn’t have any state income taxes, meaning your money stays yours throughout your lifetime. In addition to that, the property tax there is really low. So, you could have a lavish home and not see much of a difference when it comes to paying the government upkeep money.

New Hampshire

Quaint but filled with beautiful forestry, New Hampshire can sometimes feel like you just stepped into a fairy tale forest. And luckily, its retirement benefits are just as magical.

Another income state tax-free place, New Hampshire has become an attractive destination for retirees that don’t want to pay more money to keep their pension and retirement savings going.

Not even private pensions get taxed here. The cost of living is also not too high, meaning you get to live comfortably amongst the gorgeous foliage. Honestly, beyond the high property taxes (which make sense for a place as sought after as New Hampshire), there aren’t many cons to living there.

South Dakota

Don’t fall for that ‘rural’ tag when you search up living in South Dakota. Turns out, it has a lot more to offer than meets the eye.

South Dakota has an amazing cost of living index, lower than most in the entire country. It also has a very low sales tax, meaning you can avail amenities and groceries without breaking the bank when it comes to your pension.

On top of that, it doesn’t tax any retirement funds or Social Security, so you can enjoy all that wilderness without worrying about what it’s going to cost you.

Plus point? For all the small-town vibes South Dakota has, it also has a really high-quality healthcare system. This is something to consider if you want to retire because of health concerns.

Texas

The Wild West is becoming really popular amongst retirees and it’s easy to see why. Apparently, Texas is the Goldilocks of U.S. states.

Texas hits the sweet spot of being a pretty affordable state while also not imposing any state income taxes, so your pension can last you a long time.

The cost of living is lower than the average, and house inflation hasn’t kicked in as hard compared to other states in the country. Texas is surprisingly cost-effective, but the healthcare does leave a lot to be desired.

Conclusion

There are honestly so many states in the U.S., each with its own systems, rules, and regulations. So, it’s important to see which state best fits your retirement needs.

Some of us could care less about the scenery and genuinely just want to make our savings last. Some of us want a plan for the ones we love.

In any case, it takes a little guesswork but hey, finding a home usually does!

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