The sun belt was the preferred retirement destination for the parents of the baby boomers. But the favored retirement states among baby boomers are actually North and South Carolina, according to a recent Del Webb survey. Some 36 percent of 50-year-old baby boomers planning to relocate in retirement are considering the Carolinas, beating out Florida (15 percent), Tennessee (9 percent), Arizona (8 percent), California (8 percent), and Virginia (8 percent).
Among 50-year-old baby boomers who plan to move in retirement, the cost of living in the new location was an important reason for relocating to 81 percent. The future retirees were interested in access to preferred health care programs in the new location (66 percent), the cultural and recreational amenities available (61 percent), and seeking out a more favorable climate (60 percent). Proximity to family was also a factor with many desiring to retire near children (46 percent), grandchildren (38 percent), and parents or in-laws (30 percent).
In addition to these factors, retirees should consider the tax rate in their retirement locale. Seven states have no income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. New Hampshire and Tennessee tax dividend and interest income only. Alaska, Delaware, Montana, New Hampshire, and Oregon are the states that levy no sales tax. It could also be worthwhile to weigh the property tax rates and state and local tax breaks for seniors in a retirement location.
Those who will need to work part time in retirement should look into the health of the local job market. If you’re currently seeking a retirement job, check out these Job-Search Resources for Older Workers. Also, consider these great places to retire for wine lovers, golf players, football fans, and water views.