Forget about Florida — these two surprising states are the latest go-to spots for retirement, offering lower expenses, tax advantages, and an enhanced quality of life for retirees. Retirees are increasingly making their way to specific states, with rising costs of living, particularly property taxes, likely influencing their decisions. A Bankrate study, featuring insights from retirement expert David John, a senior policy adviser at AARP, evaluated states based on affordability, well-being, healthcare expenses and quality, crime rates, and weather conditions.
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John stressed the importance for retirees to thoroughly understand their financial situation, including their budget and spending habits, prior to relocating. This ensures they can afford the move, regardless of how enticing it may seem financially. According to the study, West Virginia and South Carolina are currently the top two destinations for retirees. Here’s what they offer and what retirees should consider.
West Virginia:
Ranked as the second-best state for retirement, just behind Delaware. With no official count of annual retirees, the U.S. Census Bureau reports that as of 2024, West Virginia has a population of around 1.77 million, with over 21% aged 65 and older. Dr. Joshua Price, an economics associate professor at WVU Tech, mentioned that West Virginia boasts a cost of living 16% below the national average, along with tax incentives.
According to the Bankrate study, West Virginia is deemed the most affordable state in the country. This affordability aids residents in coping with inflation, which Price highlighted as a critical concern, especially for retirees. For instance, the state boasts the ninth-lowest average property tax rate in the U.S. (0.55%). In Charleston, the capital city, the median home price results in monthly property taxes of under $120. Moreover, taxes on Social Security benefits are set to be eliminated by 2026, benefiting those nearing retirement.
However, West Virginia’s appeal extends beyond finances. Charleston offers a relaxed, picturesque mountain lifestyle with urban conveniences, as well as a vibrant arts and culture scene. Nearby towns like Hinton and Point Pleasant are renowned for their close-knit, hospitable retirement communities.
Other popular retirement spots outside the capital region include:
– Lewisburg, known for its historic architecture and charming boutiques.
– Morgantown, a lively college town with excellent healthcare facilities.
– Wheeling, offering affordability and recreational opportunities along the Ohio River.
While West Virginia has much to offer, challenges
Bankrate’s study from the previous year revealed that the cost of living in South Carolina remains above average, at approximately 95.9% of the national average. Utility costs are a significant contributing factor to the higher expenses, while housing remains relatively affordable. Grocery costs align with the national average, and house prices vary by region, with the state’s median home price just under $297,000, which is about 17% below the U.S. average.
One standout feature of South Carolina is its tax structure. The state does not impose an estate tax, exempts Social Security benefits from taxation, and only partially taxes 401(k) and IRA withdrawals. South Carolina offers diverse retirement options, including Myrtle Beach with its iconic waterfront and golfing, Charleston known for its rich culture and historic architecture, as well as idyllic communities on coastal islands like Kiawah and Seabrook.
While the state’s mild winters and sunny summers are appealing, retirees should be mindful of the hot summers with July highs reaching 89°F, as well as the risks of hurricanes and flooding. South Carolina also ranks relatively high in health-care costs, placing 33rd in the study.
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Please note that this article serves as information only and should not be interpreted as advice. It is provided without any warranty.
