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How to Retire Well in Utah

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how to retire well in Utah

Many appreciate the natural beauty you can find in Utah. Plus, it has a variety of climates to choose from. There are also many opportunities for outdoor recreation, and is more affordable than some other states. However, if you want to retire well in Utah. You do need to be prepared. Before you set your sights on the Beehive State for your retirement.  Here’s what you need to know.

Cost of Living

Assessing a state’s affordability is a great idea if you want to retire well. You can estimate how moving will impact your long-term budget, allowing you to ensure your savings is up to the task.

Often, the simplest way to gauge a state’s affordability is to look at its cost of living metrics. They let you make quick comparisons to the national average and to other states. The national average is 100, with scores higher or lower than that being more or less expensive than the average, respectively. When you compare states, the lower-numbered one is cheaper.

Utah has a combined cost of living score of 97.9, putting it just shy of the national average. Also, each category score is below the 100 mark. Groceries are at 97.9, while utilities and transportation come in at 93.2 and 99.8, respectively. Healthcare is just 92.8, which can be a boon for retirees with medical conditions.

Now, the Utah housing category score is 97.6. However, home values have skyrocketed during the last year, and that growth may not be fully reflected in the housing score. Currently, the average home value is $465,012, which is a more than 24 percent increase over the previous 12-month period.

However, property tax rates are very low. That helps bring the housing category score down.

Tax Considerations

If you want to retire well in Utah, you need to look at the tax situation. Taxes can have a substantial impact on your budget, so you want to be ready for them before you arrive.

For state income taxes, Utah uses a flat-rate approach. It’s currently set at 4.95 percent, which makes it simple to calculate regardless of your income level.

Now, Utah does tax retirement income. However, there are tax credits that apply to certain Social Security benefits that benefit lower-income retirees, as well as specific sources of military retirement income. Additionally, there are some tax breaks on other kinds of retirement income, mainly for funds that were previously taxed in other states.

The Beehive State also has a sales tax. The rates can vary from one municipality to the next, and they typically fall in the 6.1 to 9.05 percent range. However, prescription medications are exempt from sales tax, and groceries only have to pay a reduced sales tax rate, usually around 3 percent.

When it comes to property taxes, Utah is on the lower end. County assessors can exempt 45 percent of a residential primary residence’s fair market value from the equation, and that makes a big difference. Plus, low-income seniors age 65 and older may qualify for an indigent abatement or deferral, reducing your budget further.

Part-Time Job Opportunities

Working in a part-time job after retirement can be a great idea. Not only will you have a source of income, but you may also have chances to socialize and stay active, which can be great for your mental health.

In many cases, unemployment rates can give you some clues about the overall availability of part-time jobs. Lower unemployment commonly means an increased number of opportunities, while higher numbers indicate competition for positions may be fiercer.

Luckily, the unemployment rate in Utah is incredibly low. As of May 2021, it was just 2.7 percent. In comparison, the national average at that time was 5.8 percent, which is more than three percentage points higher.

Generally speaking, part-time jobs should be plentiful in Utah, especially if you’re open-minded about the kind of work. Plus, low unemployment may mean higher pay rates, allowing you to earn more or work less to make ends meet, depending on your preference.

Best Cities for Retirees in Utah

Choosing the right city for your retirement is another critical part of the equation. Luckily, Utah gives you a wide range of options, so something is almost guaranteed to fit your preferred lifestyle.

For active retirees, Ogden might be the perfect match. It’s near the Great Salt Lake, is close to beaches and ski slopes, and is pretty affordable. Plus, there are plenty of critical amenities, including high-quality medical facilities. It’s also home to Hill Air Force Base, so it can easily be the perfect choice for retired military with on-base privileges.

If you prefer a more desert landscape, consider St. George. It’s incredibly popular with snowbirds, and the average age is a bit higher than you find in some other areas. Plus, it’s close to Zions National Park and other great outdoor destinations and is only a two-hour drive from Las Vegas.

For retirees looking for a slower pace, Spanish Fork is an excellent choice. It’s got a very relaxed feel but is still close to every amenity you could need. Plus, there are nearby ski resorts and several festivals during the year, giving you plenty of options for entertainment.

Movie fans may appreciate Park City. The town is home to the Sundance Film Festival, and there are numerous opportunities for skiing, hiking, and other outdoor fun. You can also take advantage of the great bus system to get around, and there’s even a shuttle to nearby Salt Lake City.

How Much Money You Need to Retire Well in Utah

Since the Beehive State comes with a moderate cost of living, you can get by with a modest amount of income. If your goal is to retire well in Utah, around $61,425 per year can probably be enough. Your needs will be covered, and you’ll be able to afford some wants, too, ensuring your golden years are enjoyable ones.

Is there anything else people should consider to make sure they can retire well in Utah? Share your thoughts in the comments below.

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How to Retire Well in West Virginia

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how to retire well in west virginia

You’re doing your retirement planning. As a result, you’re considering moving to a place where your money will go a long way for the rest of your years to come. With its low cost of living, West Virginia comes to mind. Here’s how to retire well in West Virginia.

What Does It Mean to Retire Well in West Virginia?

Before we get into the details, though, make sure to ask yourself what a good retirement means for you. Do you want to be close to family? Are you concerned about the quality of health care near you? Are you interested in a walkable urban area or a rural life? Learning how to retire well in West Virginia means that you have to get honest with yourself about what you want from retirement. After all, just because West Virginia is perfect for many retirees doesn’t necessarily mean that it’s perfect for you.

West Virginia is a Top Place for Retirees

A 2021 Retirement Living survey found that West Virginia ranks in the top ten states for retirement. In fact, the state ranks at number three. Only Florida and Texas are higher on the list.

Here are some of the key reasons why they say many find it easy to figure out how to retire well in West Virginia:

  • Homes are highly affordable. Moreover, so are senior care communities.
  • Other costs of living are also very low.
  • The state has an excellent health care and dental care system.
  • One fifth of the population is over 65. It’s the third largest retirement age population in the country. Therefore, it’s easy to find community. Moreover, services and activities are naturally geared with this population in mind.
  • Many taxes are low. Although the state has traditionally had some high retirement income taxes, some of those are now fading out. Therefore, this situation continues to improve.
  • No matter how rural you live, you’re within 100 miles of “city conveniences.”

The number one retiree drawback to West Virginia is the weather. The winters can be harsh, particularly if you live in the mountains (for which the state is known.) Therefore, Texas and Florida rank higher on the list of best places to retire.

At least, that’s according to one survey. Another 2021 MoneyRates.com survey listed West Virginia as tied with Iowa for the number one place to retire!

West Virginia Cost of Living

West Virginia is a very affordable state to live. MoneyRates.com reports that the total cost of living in the state is more than 9% below the national average. If you’re looking to move to a place where the cost of living is low, then West Virginia is a good choice.

Housing Costs in West Virginia

In particular, housing is affordable. If you’ve already paid off your mortgage in another state, then you could easily sell that home to purchase a retirement home in West Virginia. The Retirement Living Survey cites the average home price as $119,600.

Cost of Elder Care Housing

Hopefully you’ll be able to remain in your own home for a very long time. However, eventually many people need to move to assisted living in one form or another. Therefore, it’s important to consider those costs when retirement planning. According to the aforementioned Retirement Living survey, these costs range from about $3500 per month (for in home care or assisted living) to $8400 per month (for a nursing home). Since many people are concerned about age-related memory loss, it’s worth nothing that the average cost of memory care housing is around $5000 per month.

West Virginia Health Care Costs

Whether or not you’re looking into elder care housing, chances are that you need to pay attention to health care costs in general. MoneyRates.com reports that West Virginia is ideal for this because they have the third lowest overall healthcare costs in the nation. Retirement Living explains that the West Virginia University Health System provides extremely high quality care to people across the entire state.

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Tax Considerations for West Virginia Retirees

West Virginia’s property taxes are very low. According to MoneyRates.com, only four states in the US have lower property rates.

Retirement Living reports that the state’s highest income tax rate is 6.5%.

New Cyber Senior argues that the state’s overall taxes are higher than average. However, they emphasize that retiree taxes are lower. They cite these factors:

  • An $8000 income tax deduction allowed for everyone over age 65, applicable to any form of retirement income
  • Bonus $2000 deduction for anyone receiving government pension
  • Some Social Security income is taxable. However, this is supposed to phase out in the next couple of years.

Best Cities to Retire Well in West Virginia

As discussed, if you want to know how to retire well in West Virginia then you really need to know what that means for you. But generally speaking, you have a lot of great choices within the state. New Cyber Senior reports that there are a number of Designated Retirement Communities, which means that these regions are specifically designed and upgraded with the amenities preferred by seniors.

They list the top five West Virginia cities for retirees as:

  1. Beckley
  2. Charleston
  3. Cheat Lake
  4. Morgantown
  5. Shepherdstown

You’ll Likely Retire Well in West Virginia If …

West Virginia is a state filled with beautiful nature. If you like living in a place with all four seasons – but none too extreme – then you’ll probably enjoy life in West Virginia. If you enjoy living in a state that has a high median resident age and a lot of other retired people, then you’ll find a lot to love about West Virginia. Moreover, if you are looking for a very low cost of living and aren’t concerned about making an income after retirement, then West Virginia should work well for you.

If you don’t like cold winters, then you will want to stay away from homes at the heights of the state’s mountains. The median income in the state isn’t very high. Therefore, if you’re relying on a job post-retirement for income, that’s going to be an important thing to take into consideration. However, overall, many surveys agree that West Virginia is not only in the top ten states for retirement but actually in the top three. If you want to know how to retire well in West Virginia, those are the main things to take into consideration.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

 

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How To Retire Well in Pennsylvania

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How to Retire Well in Pennsylvania

If you have the option to live anywhere in the United States upon retiring, where should you go? Of course, you’ll factor in many things from weather to where your family resides. However, don’t neglect to consider the financial aspect. This includes cost of living, tax considerations, part-time retiree jobs, and more. Here is some of the info to consider if you want to know how to retire well in Pennsylvania.

Pennsylvania Cost of Living

You definitely want to think about cost of living when deciding where to retire. After all, the more you have to pay out in annual living costs, the more money you’re going to need to retire well. According to Best Places, Pennsylvania is slightly below average on most cost of living factors.

Most importantly, the median home cost in Pennsylvania is only $173,700. That’s significantly lower than the country’s average, which is $231,200. On the Best Places Scale, a score of 100 puts you at average, so anything below that is good. On the housing costs scale, Pennsylvania is a relatively low 75.1.

Pennsylvania does score slightly higher than average on a few cost of living factors. Transportation and grocery costs are slightly higher there than the median for the United States. On the other hand, it’s slightly lower in Pennsylvania for health, utilities, and miscellaneous costs. On that 100 scale, Pennsylvania is at 92.5 overall. Therefore, it’s a good place for many people to consider if they want to retire well.

Tax Considerations in Pennsylvania

Of course, you don’t want to live in a state that has a low cost of living but terrible taxes for retirees. Luckily, that’s not the case for Pennsylvania. According to an article that cites Pennsylvania as a great place to retire, there are many tax benefits for retirees.

Most importantly, it is one of only two states that does not tax residents’ retirement income. All pension income is tax-exempt at the state level in Pennsylvania. That’s a huge factor to consider. It’s definitely a reason to think about for how to retire well in Pennsylvania. After all, this means that the more retirement income you can accrue before retiring in Pennsylvania, the better off you’ll be.

Other tax considerations for Pennsylvania retirees include:

  • The federal income tax rate is low. It is a 3.07% flat tax rate. That’s actually the lowest in the United States!
  • The state sales tax is 6% which is one of the lowest in the country.
  • Moreover, food, clothing, and both prescription and non-prescription medication are tax-exempt in Pennsylvania.
  • There are military tax benefits for members and their surviving families.
  • Low-income home renters and homeowners can receive housing rebates in Pennsylvania that offset property taxes.
  • If you leave an inheritance to someone in your family who is under age 21, then there will be no estate tax on that inheritance.

If you have a strong retirement income and can benefit from tax-exempt status on things like medication and food then you can retire well in Pennsylvania. There are also several other tax benefits to consider for low-income, military, and people intending to leave an inheritance to younger family members.

Best Pennsylvania Cities for Retirees

Lancaster, Pennsylvania was recently named by the US News and World Report as the fifth-best city for retirees out of the entire country. It ranked especially high in health care. In fact, high-quality health care is one of the most important reasons that people retire well in Pennsylvania. Obviously, as we age, we need more health care. With quality care plus tax-exempt status for medication, Pennsylvania really offers a lot in this area.

Pittsburgh, Harrisburg, and Allentown are also within the top 40 on this list. Do note that Pittsburgh does have a local tax on top of the state tax. Philadelphia is the only other city in the state that adds a tax like this. That’s certainly something to consider if you want to retire well in Pennsylvania.

In a list by the same organization on the best places to live in Philadelphia, Lancaster is number two behind Harrisburg. Pittsburgh, Reading, and York are also in the top five. While it’s important to look at factors specific to retirement, it’s also smart to consider all quality of life factors. Do your research when thinking about where you want to retire. After all, your retirement lifestyle is entirely up to you.

Part-Time / Retiree Job Opportunities in Pennsylvania

If you want to retire well in Pennsylvania then you might think about getting a part-time job. Do something that you love that will also earn you a little bit of extra income. The Bureau of Labor Statistics reports that Pennsylvania has an unemployment rate hovering around 7% which is just about 1% higher than the national average. Chief executives, financial managers, sales managers, and of course doctors and lawyers all do well in Pennsylvania. That said, if you’re ambitious and seeking employment, you should be able to find part-time work in the state.

How Much Money Do You Need to Retire Well in Pennsylvania?

Everyone has different retirement needs. Therefore, you need to figure out exactly what it means to you to retire well in Pennsylvania. Nevertheless, it helps to have some guidelines. Go Banking Rates says that the average annual expenditure for Pennsylvania retirees is a little over $52,000. They recommend a 20% “comfort buffer.” As a result, they suggest an annual retirement cost of between $65,000 and $66,000.

In order to figure out how much money you need to retire well in Pennsylvania, you have to consider how long you’re likely to live there after retiring. At the above rate, you’ll need $650,000 to retire well there for a ten-year period. Of course, you can factor in your retirement income, which might include retirement benefits, pensions, part-time work, etc.

Do you have tips for how to retire well in Pennsylvania? We’d love to know about them in the comments below!

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

 

Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Top 5 Best Retirement Communities in Alaska

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best retirement communities in alaska

For many retirees, simplifying their lives is a major goal. Additionally, some seniors, as they age, find living home alone too challenging and would like options that provide them with more support. Luckily, many of the best retirement communities in Alaska can handle those needs. Whether it’s building a community of retirees that living independently, offering robust assisted living services, or both, there’s an option that can meet nearly anyone’s needs. If you’re looking for a senior living community in Alaska. Here are five retirement communities worth exploring.

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1. Veterans and Pioneer Homes – Palmer

At Pioneer Homes in Palmer, residents get amazing views of the nearby mountain ranges, along with the stunning Knik Glacier. But it isn’t all about the views, as the services offered are designed to ensure that retirees in need of assistance have all of the care they need.

Along with private room options, there are meal and housekeeping services. Plus, assistance with daily living activities is part of the package, along with a recreation calendar filled with great activities.

This property is also the state’s first official veterans’ home. It meets all VA requirements and designates 75 percent of its capacity to veterans. For military veterans looking for comradery, this can be ideal.

2. Campbell Creek House – Anchorage

Located in the heart of Anchorage, Campbell Creek House offers a park-like setting right in the city. When it comes to assisted living care. Each resident gets customized support 24 hours a day. Along with three homemade meals, the staff can help with bathing, dressing, and more. Plus, housekeeping and laundry services are part of the package. This may also include transportation assistance for medical appointments.

Each living space offers plenty of privacy, along with the core features you’d expect in a nice home. Bathrooms have been designed to keep them accessible but also have many of the elevated touches to make them as attractive as they are functional.

There is also an activity calendar designed to help keep residents engaged and entertained. Along with social opportunities, the calendar includes solo activities that can help seniors learn and grow, too.

3. Raven Landing – Fairbanks

Located on six amazing acres across from the Noel Wien Library in Fairbanks. Raven Landing is a breathtaking 55+ community made up of four buildings, all of which are connected by heated corridors. Apartments are spacious, all featuring accessible bathrooms, full kitchens, washer/dryer hookups, balconies or patios, and much more.

Raven Landing isn’t an assisted living facility. However, certain amenities are available for a fee. This includes light housekeeping, meals, and much more. Plus, there are activity options available, making it easy to stay active.

The close proximity to downtown Fairbanks also means it’s easy to enjoy the city. Apartments come with covered parking, too, so you’ll always have a place to park when it is time to head home.

4. Aspen Creek – Anchorage

As an assisted living facility, Aspen Creek provides 24-hour care to each of its residents. The community caregivers focus on compassionate care, aiming to deliver exceptional service to every person living in the community. Whether a resident needs assistance with daily tasks like bathing and dressing, requires medical reminders, or anything else, the employees are there to lend a hand.

Additionally, Aspen Creek has plenty of amenities. When it comes to dining, there is a focus on provided great cuisine, but those with diet restrictions will also find plenty to enjoy.

For the wellness program, it’s not just about staying active. Having fun and being engaged are also priorities. Physical, social, mental, and emotional needs are all addressed, making it very well-rounded.

5. Primrose Retirement Community – Wasilla

Located in Wasilla, Primrose offers a range of services to residents, ensuring those who live there can genuinely enjoy their golden years. This retirement community is brimming with amenities, including an on-site library, hair salon, movie theater, pub, ice cream parlor, chapel, and more. Plus, each day features hosted activities every day. They range from exercise, to art to music classes.

There are also multiple service levels. Along with independent living options, including convenient apartments and townhomes, there is also an assisted living program available. With assisted living, residents get help with a variety of needs, all while being able to live in a private apartment.

 

Are there any other retirement communities in Alaska that retirees shouldn’t overlook? Are there any that people should avoid? Share your thoughts in the comments below.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

How to Retire Well in Kansas

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how to retire well in Kansas

When you get close to retirement, you may decide that now is the time to head somewhere new. Many retirees relocate to a different area, allowing them to enjoy what a particular state has to offer. While Kansas isn’t a traditional choice, it’s critical not to overlook the Sunflower State. Aside from great affordability, it brings a lot more to the table. If you’re wondering if you can retire well in Kansas, here’s a look at some critical decision-making points.

Cost of Living

Before you settle on a place to retire, it’s crucial that you take a look at a state’s cost of living scores. Those metrics give you indications about a state’s affordability, both in comparison to other states and the national average.

For simplicity, the national average is always set at 100. If a state has scores above 100, either overall or in individual categories, it means that it is more expensive than average. For scores below 100, it can be a mark of affordability.

Overall, Kansas has a cost of living score of just 87.9. Additionally, the Sunflower State has some of the lowest housing costs around, coming in with a score of only 71.8.

In the United States, the average home value is $262,604. However, in Kansas, the average is just $167,248. That’s a $95,356 difference.

As for other cost of living categories, Kansas also does very well. All of the scores remain below 100. Groceries and transportation are just 92.8 and 94.8, respectively. Healthcare comes in with a 98.4, and utilities, which has to highest score, is still only 99.4.

Tax Considerations

When you’re choosing a place to retire, looking at various local tax rates is a smart move. How much you’ll owe in taxes impacts how far your income and savings will go, significantly affecting your budget.

Kansas does have a state income tax. The Sunflower State mimics the federal government’s approach, using a bracketed system. Depending on your income level, your tax rate can vary between 3.1 and 5.7 percent.

There are some exemptions that can reduce your income tax burden. For example, retirement income from a Kansas Public Employees Retirement System account isn’t taxed. If your federal adjusted gross income is no more than $75,000 a year, then Social Security may be exempt, too.

However, most other retirement income is taxable. This includes military retirement, as well as IRA, 401(k), private pensions, and similar sources.

Kansas also has a sales tax. The base rate for most retail purchases is 6.5 percent. Cities can also add more sales tax. For example, starting in 2021, the combined tax rate in Douglass will hit 8.5 percent. But that isn’t the highest rate. In some locations, sale tax rates are 10 percent or more.

In Kansas, property tax rates are generally reasonable. Plus, retirees may qualify for programs that reduce how much they owe. For example, the Kansas Property Tax Relief for Low Income Seniors provides qualified individuals with a property tax refund worth up to 75 percent of what’s owed. For those who aren’t eligible for that program, there’s also a Homestead Refund worth up to $700.

Part-Time Job Opportunities

One option may retirees take is to find a part-time job after leaving their main career. It provides them with a source of income, something that can help them stretch their retirement savings or even set aside more money for their golden years.

Generally speaking, part-time jobs are typically available in Kansas. However, COVID-19 has shaken things up a bit, impact the availability of opportunities.

When the pandemic first began, The Sunflower State saw it’s unemployment rate skyrocket from 2.8 percent in March 2020 to 11.9 percent in April 2020. While those numbers are both markedly better than the national averages at that time – which came in at 4.4 percent and 14.7 percent, respectively – it does show that opportunities dwindled quickly.

As time passed, Kansas has largely recovered. While the national average in October 2020 came in at 6.9 percent, Kansas was at 5.3 percent, a full 1.6 percentage points lower. However, that’s still high in comparison to March’s 2.8 percent. That means it may be harder to find a part-time job, at least for a little while. So, it’s important to make sure you have enough in savings to cover you if you can’t secure a position.

Best Cities for Retirees in Kansas

Another big decision point for retirees is the city they head to for retirement. Every location can bring something a bit different to the table. Some a vibrant while others are laidback, for example. Additionally, they may offer up a unique variety of amenities and can have different costs of living.

If you’re trying to figure out which city may be a good choice, there are a few that stand out. If you want to be near Kansas City, then Lansing might be right for you. It’s a smaller city along the Missouri River that’s just brimming with amenities, all while being just a quick drive away from the big city.

Lawrence can also be a great choice. While it’s seen as a college town, it has a lot to offer retirees. It has a vibrant arts scene, for example. Lawrence also does well when it comes to accessing critical amenities.

Atchison should also be on your list. This quaint railroad town was the birthplace of Amelia Earhart, and it also settled near the banks of the Missouri River. There’s also a college in the area that gives the city a hint of youthful flare.

The same goes for Emporia. This charming town is between Wichita and Topeka, making both cities accessible. It’s also a college town, ensuring it remains vibrant and that there are plenty of amenities.

How Much Money You Need to Retire Well in Kansas

With the cost of living in Kansas being fairly low, retiring comfortably there doesn’t take as much income as some other areas. With a moderate amount of income, you might be able to retire well in The Sunflower State.

Overall, if your annual income level is at least $54,832, you will likely be in pretty good shape in Kansas. Covering your needs shouldn’t be an issue, and many of your wants should fit into your budget, too.

Retirement Apps you can use in Kansas

AppFees and MinimumBest for:
Betterment0.25% per year
no account minimum
Saving for retirement
Ellevest$1-$9 per month
no account minimum
Retirement especially for women
Personal CapitalFreePlanning retirement

Do you have any other tips that can help someone retire well in Kansas? Share your thoughts in the comments below.

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How to Retire Well in Missouri

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how to retire well in Missouri

Choosing a place to retire can be tricky. Often, aspiring retirees who are open to relocating focus on traditional destinations. While this can certainly work, it also means you may overlook the potential of a state like Missouri. The Show-Me state actually has a ton to offer. Plus, it’s substantially more affordable than many other states you may be considering. If you are wondering what it takes to retire well in Missouri, here’s everything you need to know about spending your golden years in this state.

Cost of Living

One of the biggest factors to consider when you’re choosing a place to retire is the state’s cost of living scores. With those, you can see how expensive a state is in comparison to others, as well as the national average.

For cost of living scores, the national average is forever set right at 100. When a score exceeds that mark, it means it is more expensive than average. When a score is below 100, that can be a sign of affordability.

Missouri’s overall cost of living score is just 88.9, showcasing that it costs less to settle in Missouri than many other states. Grocery and healthcare both come in with scores of 97.6, putting them slightly below average. Utilities are similar with a score of 97.5, and transportation comes in even lower with a 93.9.

However, where the Show-Me State really stands out is housing. That score is a startling 71.6, making it one of the lowest in the nation.

While the average home value in the United States is $262,604, the average in Missouri is just $173,541. That’s a difference of $89,063, showing just how affordable homes can be in the Show-Me State.

Tax Considerations

Before you pick a state to retire in, you also want to look at the tax implications of choosing that location. How much you have to pay in taxes affects your budget and how far you’re savings will go, so it’s important to take taxation into consideration.

Missouri does have a state income tax. Like the federal system, the Show-Me State uses tax brackets. Depending on your income level, you could pay anywhere between 0 to 5.4 percent on your taxable income.

Now, not all forms of retirement income are taxable income if you live in Missouri. Many qualify for deductions or exemptions. Social Security is exempt if you are at least 62 years old (or are disabled) and have less than $85,000 a year in income as an individual, or $100,000 per year if you file jointly.

There are also other exemptions and deductions available, including for public and private pensions, though not everyone is eligible. However, funds from an IRA or 401(k) don’t qualify for deductions or exemptions.

There’s also sales tax to contend with if you choose to retire in Missouri. The state sales tax rate comes in at 4.225 percent. However, cities, counties, and districts can impose additional taxes, leading to higher rates in many areas.

When it comes to property taxes, Missouri’s are fairly reasonable. Additionally, many retirees may qualify for credits or deductions that lower the cost. For example, the Missouri Property Tax Credit Claim can be worth up to $1,100 a year.

Part-Time Job Opportunities

Many retirees look for part-time jobs to bring in a little income during their golden years. In many cases, Missouri has quite a bit to offer in this department. However, COVID-19 may make positions comparatively scarce, at least for a while.

At the beginning of the COVID-19 pandemic, Missouri went from an unemployment rate of 3.9 percent in March 2020 to 10.2 percent in April 2020. Now, both of those numbers were better than the national average, which came in at 4.4 percent and 14.7 percent, respectively. However, it certainly led to some hardship.

As recovery efforts moved forward, Missouri faired well. While the national average in October 2020 was 6.9 percent, Missouri’s was 4.6 percent, less than a percentage point away from pre-pandemic levels.

While this suggests that opportunities may be returning to normal, it’s important to remember that the situation is highly fluid. As a result, it’s best not to count on part-time work as being an option, at least for the near future.

Best Cities for Retirees in Missouri

The city you choose has a big impact on your retirement. Not only can it affect your budget, as some areas cost more than others, but it can also do more. Some locales have better amenities or different vibes, altering your quality of life.

If you’re looking for a slower pace, Kennett could be a great choice. It’s in a mostly agricultural part of the state and has a smaller population. However, it still has everything you could need.

Kirkwood is another great option, especially if you want to be near St. Louis without living in it. It’s a very charming suburb that’s part of the inner ring, ensuring you can access all that St. Louis has to offer easily.

Springfield could also be an excellent choice. It’s near the Ozark Mountains, which could make it ideal for outdoorsy retirees.

How Much Money You Need to Retire Well in Missouri

Overall, the Show-Me State is pretty affordable, thanks to its lower cost of living. As a result, you should be able to secure a comfortable retirement without a ton of savings.

Generally, if you have access to at least $55,973 each year, you can likely retire well in Missouri. You should be able to cover your needs without much trouble, and many of your wants would fit into your budget, too.

Best Retirement Apps you can use in Missouri

AppFees and MinimumBest for:
Betterment0.25% per year
no account minimum
Saving for retirement
Ellevest$1-$9 per month
no account minimum
Retirement especially for women
Personal CapitalFreePlanning retirement

Do you have any tips that can help someone retire well in Missouri? Share your thoughts in the comments below.

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