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13 places everyone will be flocking to for retirement in the 2020s
13 places everyone will be flocking to for retirement in the 2020s
Liz KnuevenNov 6, 2019, 04:39 IST
Adrian Weinbrecht/Getty Images
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The states that are pulling in the most retirees are changing, and the top 13 that have grown in the past 10 years don't even include Florida.
Data from the US Department of Health and Human Services and the Administration on Aging shows that retirees are have been moving to Alaska, Nevada, and Colorado in droves between 2007 and 2017, If the trend continues, they'll keep moving there in the 2020s.
These states all have two things retirees want, which one expert says will be even more critical in the future: affordable healthcare and low taxes.
American retirees aren't all flocking to Florida anymore - instead, they're heading to places like Colorado, Nevada, and Alaska.
Retirement planner Jeannette Bajalia says that healthcare costs and taxes are going to be on retirees' minds as they plan moves in 2020 and beyond. "Healthcare costs are escalating both for routine medical costs as well as for long-term care," Bajalia told Business Insider. In deciding where to live, she said, "People will be looking for ease of access to, and affordability of, medical care."
Another big factor for people retiring in the new decade will be taxes. "I think most people will be relocating to more tax-friendly states where their money can spread, and instead of paying taxes, they can stay active longer and fund their lifestyles more effectively," Bajalia said.
Below, find 13 states that will likely become hot destinations for retirees over the next decade. These states had the largest growth in senior populations between 2007 and 2017, according to the Administration on Aging's data, pulled from the American Community Survey, and include traditional sun belt favorites like South Carolina, Georgia, and Arizona, but also tax havens like New Hampshire and Washington. While the data doesn't distinguish between residents aging into the senior population and newcomers relocating to the state, a significantly larger senior population is bound to make the area more welcoming to those who might want to move.
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On this list, five of the 13 states don't tax income. And, many other states on this list have little to no income tax. Plus, according to data from the Kaiser Family Foundation, many of these states have fairly affordable healthcare costs.
Montana has seen a fairly large increase of retirees since the early 2000s. With relatively low costs of living, it's an ideal place for seniors in many ways. Healthcare costs have also decreased between 2017 and 2018, giving retirees a help with a major expense.
Percentage increase of senior population, 2007 to 2017: 40%
Average monthly costs for healthcare: $321
State income tax rate: 1% to 6.9%
12. New Hampshire
New Hampshire is an excellent place for retirees to escape income tax (the state doesn't tax wages, salaries, or Social Security or retirement account disbursements) and sales tax, too.
Percentage increase of senior population, 2007 to 2017: 42.1%
Average monthly costs for healthcare: $303
State income tax rate: none
11. Oregon
Oregon has seen quite a few retirees move there in the past few years. Plus, Oregon offers relatively low healthcare costs.
Percentage increase of senior population, 2007 to 2017: 43.6%
Percentage increase of senior population, 2007 to 2017: 45.6%
Average monthly costs for healthcare: $286
State income tax rate: none
9. Utah
Retirees have been flocking to Utah during the past 10 years, and with affordable healthcare costs and fairly low taxes, it's likely they'll keep moving there in 2020.
Percentage increase of senior population, 2007 to 2017: 47%
Average monthly costs for healthcare: $271
State income tax rate: 4.95%
8. Washington
With a large senior population and no income tax, Washington state might be an ideal place to retire.
Percentage increase of senior population, 2007 to 2017: 48%
Average monthly costs for healthcare: $319
State income tax rate: none
7. Idaho
Idaho has seen an almost 50% increase in seniors moving in during the last decade measured. Low taxes and affordable healthcare costs might keep retirees coming in through 2020.
Percentage increase of senior population, 2007 to 2017: 49.4%
Average monthly costs for healthcare: $282
State income tax rate: 1.13% to 6.93%
6. Arizona
Arizona has seen an 18% drop in average monthly healthcare costs between 2018 and 2019. If that trend continues, even more seniors will be flocking to this sunny southwestern state in 2020.
Percentage increase of senior population, 2007 to 2017: 49.6%
Average monthly costs for healthcare: $333
State income tax rate: 2.59% to 4.54%
5. Georgia
Georgia has over 50% more retirees than it idd 10 years ago. Over the past year, healthcare costs there have dropped by 15%. Combine that with relatively low costs of living, and it's easy to see why Georgia is so attractive to retirees.
Percentage increase of senior population, 2007 to 2017: 50.3%
Average monthly costs for healthcare: $316
State income tax rate: 1% to 5.75%
4. South Carolina
South Carolina has some very affordable costs of living, and has grown its senior population significantly over the past decade measured.
Percentage increase of senior population, 2007 to 2017: 50.7%
Average monthly costs for healthcare: $405
State income tax rate: 1% to 7%
3. Colorado
Over the past 1o years, Colorado has had a boom in retirees, and with lots of nature to explore, it's bringing in lots of older people.
Percentage increase of senior population, 2007 to 2017: 55.7%
Average monthly costs for healthcare: $336
State income tax rate: 2.59% to 4.54%
2. Nevada
Nevada has seen a big spike in retirees in the past decade, and it might be thanks to the state's generous tax policies.
Percentage increase of senior population, 2007 to 2017: 57.8%
Average monthly costs for healthcare: $292
State income tax rate: none
1. Alaska
While healthcare might be less affordable in this state than in many others, it doesn't have income tax. Alaska's 65-and-up population has grown the most of any state in the US, and it doesn't seem that retirees will stop flocking there in 2020. Alaska might be the new Florida thanks to a large retiree population and low taxes.
Percentage increase of senior population, 2007 to 2017: 70.7%
