Retirees across the United States are increasingly settling in certain states, and while their reasons may not be entirely clear, one major influence appears to be the rising cost of living — especially in terms of property taxes. According to a study conducted by John Burns Research and Consulting, states were ranked based on their median property tax rates, with some states offering considerable savings for those on a fixed income.
Among the most appealing destinations for retirees are West Virginia and South Carolina, two states that stand out for having property tax rates under 0.5%. While the financial appeal is strong, retirees are advised to take a thorough look at their overall financial situation, including budgeting and spending patterns, before making the move. Retirees should fully understand their finances, including their budget and spending habits, before relocating
West Virginia
West Virginia emerges as a top choice for retirees, ranking just behind Delaware as the second-best state for retirement. Although there is no official annual count of retirees relocating to the state, data from the U.S. Census Bureau in 2020 shows that out of West Virginia’s population of about 1.8 million, around 22% are aged 65 or older.
A study by Bankrate ranks West Virginia as the most affordable state in the nation. However, the state’s charm extends beyond just its low cost of living. Its capital, Charleston, offers a relaxed lifestyle set against a scenic mountain backdrop, yet still features many of the conveniences and cultural attractions of a larger city. Charleston offers laid-back, scenic mountain living with big-city amenities, as well as a thriving arts and culture scene.
One of the most attractive financial benefits of moving to West Virginia is its property tax rate. With an average of 0.55%, it ranks as the ninth-lowest in the United States. This affordability plays a crucial role in helping residents, especially retirees, manage the effects of inflation.
To further shield retirement savings from inflation, retirees are exploring alternative investment options like gold. Investing in a gold IRA, particularly through providers such as American Hartford Gold, is becoming an increasingly popular strategy. A gold IRA allows individuals to hold physical gold or gold-related assets within a retirement account, combining the benefits of gold investment with the tax advantages of an IRA.
This makes it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.Moreover, existing 401(k) or IRA accounts can often be rolled over into a gold IRA without incurring tax penalties. On top of that, qualifying purchases may even come with incentives, such as up to $20,000 in free silver.
Despite its many advantages, West Virginia is not without its downsides. Some of the challenges include limited access to healthcare in rural areas, harsh winter conditions with significant snowfall, and limited job opportunities for retirees seeking to supplement their income.
South Carolina
South Carolina is another state drawing attention from retirees. It has improved in affordability rankings since 2023, moving up six spots in Bankrate’s evaluation. Although the state’s cost of living is still slightly above average — around 95.9% of the national figure — housing remains relatively affordable. The state’s average home value is approximately $303,126, which is about 21% below the national average.
Utility costs are one of the main contributors to the higher cost of living, but homeowners can reduce their insurance expenses by using platforms like OfficialHomeInsurance.com. All it takes is two minutes for them to comb through over 200 insurers, for free, to find the best deal in your area. The process can be done entirely online.
South Carolina also stands out because of its favorable tax policies. The state does not impose an estate tax, and Social Security benefits are exempt from state taxes. Additionally, withdrawals from 401(k) and IRA accounts are only partially taxed. These factors combine to make the state a financially sensible option for many retirees.
Beyond financial perks, South Carolina boasts nearly 200 miles of coastline. Coastal islands such as Kiawah and Seabrook offer scenic and tranquil communities that many retirees find attractive. Mild winters and sunny weather further enhance the state’s appeal. However, potential drawbacks must be considered. For instance, the summer heat can be intense, with July temperatures reaching an average high of 89°F. There are also concerns about natural disasters, such as hurricanes and flooding.
Healthcare costs are another consideration. South Carolina ranks 33rd in terms of healthcare affordability, which might be a concern for retirees living on a fixed budget. It’s worth considering how to decrease costs on other essentials to compensate for that.One way to do so is by comparing auto insurance options through services like OfficialCarInsurance.com. The platform simplifies the comparison process by matching users with affordable insurance options without affecting their credit scores.
Consulting a Financial Advisor
Regardless of the potential savings or natural beauty a state may offer, relocating for retirement is a complex decision that involves many moving parts. It’s not just about cutting costs or seeking better tax policies; retirees must evaluate how the move fits with their overall lifestyle, financial goals, and health needs. It’s about so much more than just finding somewhere with better tax benefits or cheaper rent.
To navigate this critical life decision, consulting a financial advisor is highly recommended. Platforms like Advisor.com connect individuals with vetted financial experts who offer tailored advice based on personal goals and circumstances. With Advisor.com, you get a trusted partner that’s with you every step of the way in your retirement journey.
These advisors help retirees make informed decisions, develop sound investment strategies, and ensure they are prepared for the long term. Starting the planning process early can provide peace of mind and a clearer vision for the future.Start planning early, and get your retirement mapped out today.
In summary, while both West Virginia and South Carolina offer compelling financial advantages and lifestyle perks for retirees, the decision to relocate should be made with a clear understanding of the broader implications. With careful planning and professional guidance, retirees can find a destination that fits both their financial and personal needs.