Are you worried that the grass in your golden years could be greener in another state? You may be right. Freshen your perspective with our list of the top six states for retirees seeking financial security.
Some states offer abundant sunshine or an array of entertainment options. Then there are states that provide a good shot at thriving financially during retirement. Three key factors go into that equation—all of which are related to taxes.
To come up with our list, we first looked at the states that don’t tax 401(k), IRA, or pension distributions. According to AARP, those 12 states are:
- New Hampshire
- South Dakota
Then, if you take that list and include only the nine states that don’t impose an income tax:
- New Hampshire
- South Dakota
Finally, we narrowed our list to the six of those nine states that have the lowest property taxes:
It just so happens that five of those six states are also among the top gold-producing states in the U.S.
Warm-weather destinations may lure many retirees, but don’t give the cold shoulder to the 49th state. Alaska is one of five states that “boast more generous benefits, more working opportunities, and better-funded services for seniors than popular retirement destinations like Florida and Arizona,” according to PBS.
Gold fact: Alaska ranks as the no. 2 state for gold production.
The Sunshine State’s mild weather and beautiful beaches draw seniors in droves. The favorable tax environment also attracts them.
“Moving to the Sunshine State could save you a lot of money in taxes. Florida, one of [the] most tax-friendly states for retirees, has no state income tax. That means no state taxes on Social Security benefits, pensions, IRAs, 401(k)s, and other retirement income. It also has no inheritance or estate tax,” Kiplinger.com points out.
Gold fact: Florida is the only state on our list without any known gold deposits. The state is made almost entirely from limestone—a sedimentary rock that is not gold-bearing!
Retirees may want to take a gamble on living in Nevada.
“Nevada is a tax-friendly state, making it ideal for many retirees. You’ll pay no regular or retirement income tax, and Nevada property taxes are low,” RetirementLiving.com says.
Gold fact: Nevada leads the nation in the production of gold.
Silver fact: Known as the Silver State, Nevada ranks as the top producer of silver in the U.S.
It’s no wonder that so many retirees volunteer to settle in tax-friendly Tennessee.
“The Volunteer State is a good choice for budget-conscious retirees. According to data from the Council for Community and Economic Research, every major metro area offers below-average living costs in almost every category of expenses, including healthcare—among the biggest financial concerns for aging Americans,” Kiplinger.com reported in 2018.
Gold fact no. 1: In the past, Tennessee lawmakers have supported a plan to set up a state depository for gold and silver. However, legislation authorizing a depository has yet to make it to the governor’s desk.
Gold fact no. 2: Most of the gold in Tennessee is located in the southeastern part of the state.
The biggest state in the Pacific Northwest offers a big reason to retire there. SmartAsset hails Washington as a tax-friendly place for seniors, “ensuring a more affordable retirement option.”
Gold fact: Every county in Washington has produced gold.
If you want to hang onto your wealth, Wyoming may be the place to hang your hat. In 2019, SmartAsset ranked Wyoming first on its list of the states where it costs the least to be rich.
Gold fact no. 1: Every gold prospector in Wyoming must obtain a mining lease from the state.
Gold fact no. 2: Legislators in Wyoming have regularly advocated to establish a state depository for precious metals.