Let’s get the obvious choice out of the way: The Sunshine State is very hospitable to retirees and their money. The state famously lacks a state income tax, which means you won’t pay any tax on your pension.
Assuming you can stomach the state’s real estate costs and the occasional hurricane, your 401(k) and IRA distributions will go further since Florida doesn’t tax distributions from those plans. And Social Security? No taxes on that, either.
Grow your retirement savings
Retiring to the Silver State is a safe bet, since Nevada is another state that doesn’t have income tax, which like Florida means no taxes on pensions, retirement plan distributions or Social Security.
Nevada is home to many of the nation’s top retirement destination towns, with the suburbs outside of Las Vegas offering the tempting combination of warmer temperatures in winter and access to casinos and other entertainment year-round.
Though recent winter conditions have proven challenging even for Texas, you can generally expect to stay warm in the Lone Star State. The tax breaks will warm your heart, too.
Texas doesn’t tax state income. Nor does it tax Social Security, pension income or distributions from retirement plans. Those factors, combined with a general lower cost of living and comparatively lower real estate costs, make Texas an attractive landing spot.
But government money lost to those tax breaks has to come from somewhere, which explains why the state has some of the nation’s highest property tax rates.
Save more with an AARP membership
If it's good enough for Dolly Parton, why not you too?
There's no income tax in this state, which means residents of Tennessee don't pay taxes on their pensions, 401(k)s, IRAs or Social Security benefits. The state also boasts a low cost of living, included low property taxes.
And if you're looking for company in your golden years, Tennessee is also home to a number of retirement communities, which it promotes through the Tennessee Department of Tourist Development.
What about that other idyllic landing spot, Hawaii?
Unfortunately, Hawaii doesn't quite make the cut: while Social Security income isn’t taxed in the state, private pensions and retirement plan distributions are.
Of course, there’s a good chance that if you’re even considering Hawaii — with its high cost of living and soaring real estate valuations — you’ve probably determined that you can survive those levies.
Jump-start your retirement plan with personalized advice
Finding financial advisors for your specific needs doesn't have to be hard.
In only a few minutes, WiserAdvisor matches you with pre-screened FINRA/SEC registered advisors in your area to guide your retirement plan based on what's most important to you.
Get started today with WiserAdvisor, a better way to find the right financial advsior.