4 Amazing Retirement Destinations Way Cheaper Than Florida
Florida has long been considered one of the most ideal places to retire in style. However, just because the real estate market is popular, it doesn’t always mean it’s the best. Though Florida does have several pros like its climate and a lack of state income tax, there are also cons like high property taxes and insurance premiums due to being in an area subject to hurricanes.
Figuring out the ideal place to stretch your retirement income is the objective, even if the location that fits your needs is subjective. With that in mind, consider the following list of recommended locations that could offer a better way to stretch out your nest egg.
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The Carolinas
Living in either North Carolina or South Carolina typically requires less income than Florida to enjoy a comfortable retirement lifestyle. Plus, along with affordability, you can enjoy a bit more seasonality and less extreme summers in the Carolinas.
Something that stands out about North Carolina is that it has 18 Certified Retirement Communities. These communities are ideal for retirees as they include amenities and services that let seniors lead active and social lives.
To put housing pricing in perspective, here are some key takeaways:
The median value of an owner-occupied home in Key West, Florida, is $816,300, with median monthly mortgage costs of about $3,486.
The average Key West home value is $1,051,811, down 5.1% over the past year
The average monthly payment on a 30-year fixed mortgage with a $445,000 home in Raleigh, North Carolina, is around $2,660.
South Carolina is full of options for retirees as well, from resort-like living in Hilton Head or Myrtle Beach.
The average Myrtle Beach home value is $324,722, down 4.2% over the past year, and goes to pending in around 53 days.
Minnesota
Minnesota might not seem like a retirement destination off the bat, but the state is more affordable in general than Florida for retirees.
The average monthly mortgage payment for the entire state of Minnesota is about $1,923, whereas the average monthly mortgage payment in Florida is $2,313. However, in bigger cities like Minneapolis, the average monthly mortgage payment is around $1,995, but the average monthly mortgage payment in the Miami-Fort Lauderdale metro area is closer to $2,452.
While winters certainly get cold in Minnesota, the “Land of 10,000 Lakes” is great for nature lovers who dream of a retirement full of outdoor recreation. In fact, 99% of seniors in Minneapolis live within a 10-minute walk of a park, according to the Trust for Public Land.
Perhaps what makes Minnesota a draw is its healthcare offerings. In addition to being home to the top-ranked Mayo Clinic, Minnesota earns high marks for healthcare cost, quality and availability for seniors.
Colorado
Colorado also makes the list of some of the (mountain) top places to retire. To be fair, Colorado overall is generally not always cheaper than Florida — especially if you are looking at Denver or some of the more luxurious ski towns — but it’s worth noting that affordability varies based on your situation. For example, if you have a significant amount of retirement assets in a Roth account, then Florida’s lack of individual income taxes may not be as appealing.
In contrast, Colorado’s low property tax rate could save you money if you plan on owning a home. The state’s effective property tax rate is 0.55%, which ranks third best in the nation, while Florida is around the middle of the pack at 0.91%, according to a Tax Foundation analysis.
Plus, Colorado has a lot going for it in terms of quality of life. For example, Colorado tends to rank at or near the top of most rankings for the most physically fit states.
Abroad
If you want to potentially save money while enjoying a great quality of life, you can also consider retiring outside of the U.S. So many places abroad — Costa Rica, Mexico, Portugal and Belgium, just to name a few — offer an inexpensive way of life and are considered to have great communities for expats.
Overall, there are many great places to consider retiring to besides Florida. Some people may still find that Florida fits their desired retirement lifestyle and budget, but don’t feel like their options are limited. There are many other cities, states and even countries that offer alternatives to enjoy an affordable, fun retirement.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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