Popular vs Affordable States To Retire In

Popular vs Affordable States To Retire In

by Aug 22, 2019Retirement Planning

When the time comes to retire, you may decide that you’d like to relocate. And while only 1.6% of retirees aged 55 to 65 end up moving outside their home state, it’s a good idea to consider all your options before making a final decision. With this in mind, many retirees considering an out of state move are immediately faced with a touch choice: the desirability vs affordability of a given location.

Because the United States is so large and offers so many different types of climates, some states have become more popular for retirees than others. Unfortunately, the most desirable places to live and/or retire typically end up being the most expensive as well, simply as a function of supply and demand.

As part of a 2018 study by United Van Lines, customers were asked what their primary reason for moving was. Among the many reasons given, “retirement” was a common response. The company was able to create a list of the most popular states to retire in based on those answers.
 

Most Popular Retirement States

The following ten states are currently the most popular retirement destinations, as determined by the number of people citing their reason for moving there as “retirement”. They are listed from most to least popular.

  1. New Mexico
  2. Florida
  3. Arizona
  4. South Carolina
  5. Idaho
  6. Maine
  7. Vermont
  8. Nevada
  9. Wyoming
  10. Montana

As you can see, western states and states with traditionally warmer climates dominate the list. However, these states aren’t necessarily the least expensive places to retire to.
 

Most Affordable States To Live In

Last summer, US News and World Report published a report of the most affordable states to live in. The report was based on the average cost of living and average home prices. Here are the top ten most affordable states, according to their rankings:

  1. Ohio
  2. Indiana
  3. Iowa
  4. Michigan
  5. Nebraska
  6. Oklahoma
  7. Kansas
  8. Kentucky
  9. West Virginia
  10. Missouri

None of the most affordable states are the same as the most popular states to retire in. That doesn’t mean the most affordable states are bad retirement destinations, they’re just not the most popular right now.
 

Where You Live vs How You Live

When deciding on where you want to retire, it’s important to ask yourself a question: Is where you live more important than how you live.

If where you live is more important, you may have less money for day-to-day activities because your home/condo/apartment is a bit more expensive than other places.

If your priority is having plenty of money for dining out, recreation, shopping, etc.–you might be happier in a state with a lower cost of living.

Regardless of which option you choose, consider working with an experienced financial planner to help you plan for retirement. To learn more about how to set up a retirement plan that works for you, please contact us today for a free consultation.

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