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Many seniors eventually retire to the same place where they lived during their working years. And if the city or village in which you lived throughout your career is teeming with amenities, family members and friends, then you may want to stay in place for your age of one year. gold. At the same time, moving to retirement could contribute to a more relaxed and less stressful lifestyle. Here are some reasons to consider moving.
1. You live somewhere with a high cost of living
Some cities are more expensive than others. Living in an expensive city often gives you access to better jobs and higher pay, but once you stop working, it's no longer a motivator to stay. Therefore, if you live in a place where the cost of living is high, a move could help you better leverage your limited income.
SOURCE OF IMAGE: GETTY IMAGES.
2. You live in a region with high taxes on property or property
High taxes can be a source of financial stress in retirement, even if you live in a place that does not cost so much. Although you would not earn a full-time job salary, you will still have income from Social Security, your retirement savings (hopefully) or maybe a job part time or from a business. The less tax you pay on this income, the more money you will have to spend.
The same goes for property taxes. Many seniors start to retire while their mortgage has already been paid back, but even if you own your home, high property taxes can be brutal when you have a fixed income. Moving to a place where it is cheaper to own a house could help you better manage your limited income.
3. You live in a state that taxes social security
Most states do not impose tax on social security benefits, but there are 13:
- Colorado
- Connecticut
- Kansas
- Minnesota
- Missouri
- Montana
- Nebraska
- New Mexico
- North Dakota
- Rhode Island
- Utah
- Vermont
- West Virginia
The good news is that most of these states also offer exemptions for low- and middle-income households. If your retirement income is not particularly high, you may avoid tax on your social security benefits. The only one indicates that do not Minnesota, North Dakota, Vermont and West Virginia offer an exemption. Nevertheless, it is worth considering moving to a place where you will not have to worry about state taxes on your benefits.
That said, some of the states mentioned above may offer a lower cost of living as a whole. So do not let taxes on social security benefits be the priority. Unique factor that informs your decision. Also, keep in mind that even if you manage to avoid state-level social security taxes, you could be taxed on these benefits at the federal level, especially if it's not your only source retirement income.
4. You live in a place where you absolutely need a car
Living in a pedestrian city or with public transport could save you a lot of money during your retirement by allowing you to get by without a car. According to AAA, owning a vehicle costs an average of $ 8,849 per year on average.
In the meantime, walking is free and public transportation can be relatively inexpensive compared to owning a car, especially as many cities offer discounts to seniors. Living in a place where you can walk can also help you stay in shape, saving you money on health care.
Moving to retirement is not an easy thing to do. Your life and move are expensive, but if you make this investment, it could make your golden years easier from a financial point of view. And who knows? You may find that your new city offers more activities and social opportunities than the ones you previously had access to.
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