Forget sandy toes and piña coladas. The hottest retirement spots may not be what you think. Turns out, a recent list crowns the mountain and midwestern states as surprisingly great places to settle down. Why? They prioritize what matters in your golden years: affordability, community and adventure.
Imagine cozy cabins with crackling fireplaces, vibrant college towns bursting with energy and friendly farmers’ markets brimming with fresh, local goodness. That’s the real retirement paradise!
Think of this blog as your guide to ditching the beach bum life and embracing a different kind of sunshine: one where community thrives, nature reigns and your wallet smiles. No matter your passion, the mountains and midwest have a hidden gem waiting to be discovered.
Sure, warm weather is great, but this list prioritizes factors that contribute to a fulfilling and secure retirement:
- Cost of Living: Stretching your nest egg further means more freedom and less financial stress. These states offer lower living expenses, allowing your retirement dollars to go the extra mile.
- Crime Rates: Safety first! These havens boast low crime rates, providing peace of mind and the freedom to enjoy your golden years without worry.
- Healthcare Quality: Access to top-notch healthcare is crucial. These states prioritize quality care, ensuring your health is well looked after.
- General Well-being: Happiness truly matters! Residents in these states report high levels of well-being, suggesting a lifestyle that goes beyond the superficial allure of a beach.
Let’s Meet the Top 10 Retirement Locations
- South Dakota: Don’t underestimate the power of a snow shovel! Despite the chilly winters, South Dakota boasts affordable living, quality healthcare and zero state income tax. Plus, the Badlands and Black Hills offer stunning natural beauty and diverse outdoor adventures, from hiking and biking to exploring historic ghost towns.
- Colorado: Beyond the majestic Rocky Mountains lies a secret – mild winters in certain regions like Denver and Grand Junction. Colorado also shines with high-quality healthcare and a lower tax burden compared to coastal states. Just be prepared for a slightly higher cost of living compared to other states on the list.
- Utah: Calling all city slickers and nature lovers! Utah offers the vibrant cultural scene of Salt Lake City with its convenient light rail, alongside breathtaking natural parks like Zion and Canyonlands. Add to that the low cost of living and excellent healthcare and you have a recipe for a fulfilling retirement that balances urban convenience with breathtaking natural beauty.
- North Dakota: Brace yourself for some serious winters, but embrace the trade-off: an incredibly low crime rate, fantastic healthcare and the highest level of reported general well-being in the nation! Turns out, happiness can bloom even in snowdrifts.
- Wyoming: Tax-conscious retirees, listen up! Wyoming boasts rock-bottom taxes and moderate living costs. Just remember, healthcare quality takes a slight dip compared to other top contenders, but the trade-off might be worth it for budget-minded folks who can access specialized care in neighboring states if needed.
- Nebraska: Wide-open spaces, low cost of living and a relatively low crime rate make Nebraska a haven for peace-loving retirees. Plus, residents report high levels of well-being, suggesting a simple life isn’t always synonymous with dissatisfaction.
- Montana: Montana might be one of the largest states by landmass, but it has one of the smallest populations. This translates to plenty of room to roam for retirees who love wide-open spaces and unspoiled natural beauty. While the cost of living isn’t the lowest, the lack of a sales tax helps offset some of the expense. Plus, Kalispell boasts the largest freshwater lake west of the Mississippi and a top-ranked regional medical center.
- Idaho: Affordability and safety? Check! Idaho boasts the lowest crime rate in the nation and living costs are below the national average. While taxes are slightly higher than other Mountain states, the capital, Boise, offers access to outdoor activities, the arts and a massive cultural center.
- Iowa: Don’t be fooled by the cold winters! Iowa makes the list for its low crime and living costs, coupled with high-quality healthcare. The college town of Iowa City offers retirees cultural and intellectual stimulation, with free outdoor movie nights and concerts throughout the summer.
- Virginia: Finally, a warmer option! Virginia’s coastal charm shines in Norfolk, with miles of beaches, kayaking and sailing in Chesapeake Bay. Plus, you’ll find an art museum, opera house and theater company waiting to entertain you. If the beach beckons but the mountain chill doesn’t, Virginia offers a welcoming alternative with a touch of Southern hospitality.
While picturesque beach towns might paint the perfect retirement dream, financial reality takes center stage. So, how much do you truly need to maintain your lifestyle after hanging up the work hat?
Experts have varied opinions, but Fidelity Investments offers a simple rule of thumb: aim for eight times your ending salary saved by the age of 60. Don’t let the number shock you! You can build your nest egg gradually, following Fidelity’s suggested milestones:
Age 30: Save 1x your current salary
Age 40: 3x your current salary
Age 50: 6x your current salary
Age 60: 8x your current salary
Age 67: 10x your current salary
Linking clear goals to your salary simplifies planning and keeps you on track. Why is this crucial? Today’s workplace throws curveballs with layoffs, longer lifespans, job changes and rising healthcare costs.
But how did Fidelity land on that “8x” figure? They analyzed a hypothetical worker’s savings and expenses, concluding that reaching roughly 8x their ending salary would cover 85% income replacement minus estimated taxes. This scenario even includes a financial cushion.
Remember, the exact amount will be unique to your situation. Use this information as a starting point, consult financial advisors and adjust your goals based on your specific needs and lifestyle aspirations. But most importantly, start planning now—your golden years will thank you for it!
