Pulling up stakes and moving somewhere new for retirement can be a great move for some folks. But where to go?
You certainly could consider moving abroad, and many have, but most Americans will stay here in the United States. Each of the 50 states has its own personality and appeal, drawbacks and attractions, and the considerations beyond that are as varied as the factors that make up each individual's very personal decision.
I'm a recent retiree -- an Ohioan long living in South Carolina -- with no plans to move, but I've given it some thought and if I were to move, I'd look first at Washington and Tennessee.
Here's how I came to that decision. As a retiree you're likely to be living on your investments, savings, and Social Security, so I narrowed the list to the eight states that don't tax Social Security benefits, wage income, dividends, or interest. They are Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Then I considered climate, scenery, and outdoor recreation, and the range of cultural and entertainment opportunities, as well as a mix of small towns and urban life. Here's why I landed on Tennessee and Washington as my 2024 picks for the absolute best states to retire to.
Image source: Getty Images.
Get your green on, and keep more of it, in the Evergreen State
The State of Washington does not tax income, and it's also easy on the eyes. That is unless you don't like snow-covered peaks, pristine alpine lakes, millions of acres of verdant Pacific Northwest forest, rugged shorelines, and charming seaside towns. Even then, you can live in Seattle, an international dining, cultural, and entertainment mecca and high-tech bastion. (And still see massive Mount Rainier looming in the near distance.)
The climate is generally moderate in the Evergreen State -- especially around Puget Sound -- making it easy to enjoy pursuits such as hiking, fishing, and boating year-round.
To be sure, Seattle is one of the most expensive markets in the country, and it is indeed rainy, but the cost of living can be notably less in eastern Washington, with its distinctly drier, and seasonally hotter and colder climate that's home to much of America's apple production and other agricultural pursuits.
Overall, Washington's tax advantages, outdoor recreational opportunities, healthcare facilities, and lifestyle and cultural choices make it an attractive destination to consider for retirement.
The Volunteer State sets the stage with Nashville and the great outdoors
Want to make your retirement dollars stretch, even on Broadway? Check out Nashville. Its Lower Broadway district is home to Honky Tonk Highway, where a row of clubs boasts talented hopefuls pumping out live music at no cover charge. That's from 10 a.m. to 3 a.m., hours that suit day trippers and night owls alike.
And if music matters, you can always look for Elvis history in Memphis and hang out on Beale Street. And don't forget Dollywood and mountain music on the other side of the state. Entertainment is just one of the myriad reasons why Tennessee makes this list of two states I'd consider for retirement. More significant, of course, is the choice of lifestyle and living situations offered in a state that's 440 miles wide.
Image source: Getty Images.
Like Washington, Tennessee is divided into distinct sections -- only in this case there are three instead of two. The Volunteer State is anchored on the west by Memphis on the Mississippi River, Nashville is the state capital and hub of middle Tennessee (as well as a regional healthcare hub anchored by Vanderbilt University Medical Center), and Knoxville is the largest city in East Tennessee and gateway to the mountains.
Culture and history buffs find much to love here, as do outdoors enthusiasts enjoying the Tennessee and Cumberland rivers, and their reservoirs -- many of which are home to multiple planned developments that appeal to retirees -- along with parks headlined by the Great Smoky Mountain National Park, and a diverse array of thriving small towns with their own festivals and unique shops that need employees (important if you want to keep working).
It's personal
Tennessee and Washington each have favorable tax climates, but living expenses vary widely after that, including within their own borders. For instance, in one recent study, the cost of living in Seattle is a resounding 137% above the national average, while it's at 96% in Spokane, the largest city in eastern Washington and a business, culture, healthcare, and transportation hub of the more sparsely populated inland Pacific Northwest.
Meanwhile, the same survey from Salary.com places even the most expensive markets in Tennessee -- Nashville and its major suburbs -- at only right at or slightly above the national average for cost of living. Memphis is at 88%, as is -- hundreds of miles to the east, Johnson City -- nestled between the Blue Ridge and Great Smoky Mountains.
As with when to retire, where to retire is an intensely personal decision with multiple factors to consider. I hope this broad overview of these two states can help jump-start some of that consideration regardless of where you are in your working life's journey.
