Article takeaways
- Our research suggests that cities in Florida, Texas, Indiana, and Michigan show promise for retirees.
- The best place to retire will depend on your individual budget and lifestyle needs.
- Make sure you research the local culture and lifestyle of a potential retirement destination to make sure it’s right for you.
- Consider renting a storage unit to save space and assist with your retirement move.
After a life spent working, saving, and securing your family’s legacy, you finally get to reap the rewards of retirement…but where will you choose to spend those years?
Retirement looks different for everyone, and you’ll want to make the best decision for your wants and needs. Do you want a simple, no-frills retirement, or a luxurious one? Do you prefer beaches, mountains, cities, or farmland? How do you compare different states based on taxes, healthcare, climate, culture, and cost?
If you’re overwhelmed by the prospect of deciding where to retire, we’re here to help. In this article, we’ll go over a few important factors to consider and tips to use when nailing down your ultimate retirement destination.
What states have the lowest tax on retirement savings?
You’ll be able to get the most out of your retirement savings in a state with little to no income tax or tax on Social Security benefits. After you’ve used the $1000-per-month rule, which states that you need approximately $240,000 in savings for every $1,000 you want to withdraw each month during retirement, it’s important to consider how taxes might affect those savings.
As of this writing, eight states don’t tax income:
These tax breaks extend to Social Security and withdrawals from 401(k) and Roth IRA accounts. You’ll also find that most states don’t tax Social Security benefits or offer tax relief for retired seniors to offset their taxes; the only states that do tax Social Security benefits are Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Vermont, Utah, and West Virginia.
However, even with this information in hand, you should still do research to see how the cost of living, sales, and property taxes offset the income tax breaks a state may offer. It’s important to compare states and see whether what you’d save from taxes is worth an increased cost of living.
What are some good cities to retire in for people of various budget sizes?
No matter your budget, you can find a place to retire that won’t wipe out your savings. Here are five selected destinations, from lowest to highest cost of living.
| City and state | Cost of living | Key amenities | Who would thrive there? |
|---|---|---|---|
| Midland, MI | 20% below national average | Close to one of the Great Lakes; walkable; top-rated healthcare facilities | Seniors looking to stay active and healthy on a budget |
| Spring Hill, FL | 16% below national average | The Weeki Wachee River, Nature Coast Botanical Gardens, and Pine Island Park beach | Seniors who want the Florida retirement experience without breaking the bank |
| Fort Wayne, IN | 7% below national average | Vibrant local art, music, and community theatre scene; over 100 miles of trails | Seniors looking to engage with the arts and seniors who enjoy the outdoors |
| The Woodlands, TX | 2% below national average | Proximity to Houston; extensive parks and trails; the Cynthia Woods Mitchell music pavilion | Seniors with a decent savings account who want to retire in an upscale yet suburban environment |
| Naples, FL | 31% above national average | Luxurious beaches, upscale living, resort-like daily life | Seniors for whom money is no object |
Fort Wayne, IN
A combination of small town and small city charm invites potential retirees to Fort Wayne, Indiana. Seniors looking to stay engaged with the great outdoors will enjoy the town’s 100+ miles of hiking and walking trails, and patrons of the arts can explore local art museums or take in local talent at community theatre shows.
Midland, MI
Alongside a significantly lower cost of living than many places, Midland, Michigan gives retirees access to beautiful Lake Michigan and plenty of places to walk and enjoy the outdoors. If you’re looking to stay healthy during your retirement, Midland consistently ranks high in affordable, high-quality healthcare to keep you in good shape and improve your quality of life.
Spring Hill, FL
Florida is a popular yet expensive place to retire, but if you’re looking for the full experience on a budget, look into the community of Spring Hill. You’ll get the natural beauty of the Weeki Wachee River, plenty of local flora and botanical gardens, and easy access to beautiful beaches, all at a cost of living that’s 16% below the national average.
The Woodlands, TX
The Texas community of The Woodlands offers an upscale take on a suburban environment, allowing retirees to build a small-town community while taking advantage of amenities you usually only get in larger cities. Take in a show at the Cynthia Woods Mitchell Music Pavilion, visit local parks and trails, or even take a day trip to Houston in minutes.
Naples, FL
Naples is where retirees who’ve been saving for years go to spend their retirement years in the lap of luxury. If you’re willing to save and pay for it, you’ll have access to resort-like daily life, upscale food and places to live, and some of the most beautiful beaches in all of Florida.
What non-monetary factors play into having a happy retirement?
No matter what the numbers might tell you, retirement satisfaction depends on much more than how much money you save or spend. The “best” place to retire depends on your individual priorities regarding location, culture, and healthcare; for example, if you prefer to retire to a simple life in a mountainous area, using your savings to retire to Naples, FL will leave you dissatisfied.
Do plenty of research into the culture and climate of your retirement options before you make a decision. You should also look into the quality of healthcare if you’re worried about staying healthy during retirement, proximity to your family members if you want them to visit you often, and the sense of community in the area if community is important to you.
Should I rent or buy my retirement home?
Housing is an important consideration when deciding what your retirement will look like. Do you prefer the flexibility of renting or the stability of buying a home?
- Renting an apartment or home for retirement gives you the ability to change your mind and figure out which location is best for you if you’re not ready to make a permanent decision. This is especially useful for your first few years in a new location.
- You may want to look into self-storage if you’re living in a smaller space or planning on moving around often, as you’ll need some extra space in a consistent location to keep your belongings.
- Buying a home for retirement will help you build equity and credit, and provide stability if you’re ready to settle down in a new location for the long term.
- Self-storage will help you in this instance as well as you figure out what your home structure will look like and you decide what to keep and what to get rid of.
How can self storage make my retirement move easier?
No matter where you move or how you spend your retirement years, it’s worth considering self storage to help make your move easier. If you’re opting for rental in order to try out several new places, or you live a “snowbird” lifestyle and travel to warmer climates every winter, you’ll benefit even more from renting a storage unit to keep some of your belongings in, and you’ll find it’s surprisingly affordable.
Here are some common storage unit sizes and monthly rental prices you may find in the states we’ve listed. As you’ll see, prices vary wildly between states based on demand and proximity to popular moving destinations, so this may factor into your decision.
| Storage Unit Size | Capacity | Florida | Michigan | Texas | Indiana |
|---|---|---|---|---|---|
| 5′ x 5′ | Contents of a closet | $32.24 | $34.33 | $27.21 | $28.23 |
| 5′ x 10′ | Contents of a single bedroom | $50.33 | $49.06 | $40.98 | $39.28 |
| 10′ x 10′ | Contents of a family or living room | $84.40 | $79.36 | $65.06 | $64.23 |
| 10′ x 15′ | Contents of three full bedrooms | $115.74 | $101.82 | $89.15 | $85.46 |
| 10′ x 20′ | Contents of an entire house | $143.95 | $117.04 | $107.29 | $101.03 |
How can I find the right self storage unit for my retirement move?
Whatever your retirement may look like, choosing the best place to spend it means you’ll need to balance quality of life with finances and savings. It all depends on your unique priorities and budget, but it always requires you to plan. With enough research, you’ll have your location and self-storage needs taken care of ahead of time for a long, fulfilling retirement.
Still seeking out a place to store belongings you don’t think you’ll have space for? We can help! Use SelfStorage.com’s built-in search tool to compare storage facilities near your retirement destination and find one that fits your budget and needs.
