There are lower-cost beach destinations for retirees in Florida.
Like most things in life, the best of anything is subjective. If your budget is the driving force in deciding where to retire, you are in luck because there are several good options.
Considerations
To determine which location is best for you, in addition to a focus on budgetary constraints, consider the type of weather you prefer, how near or far you prefer to be from your family, your health care needs, your ability to drive, your cultural and religious preferences, and the type of leisure activities you enjoy. Also, if you currently live in a populous, high-tax state, a move to just about any state with lower taxes and home prices will help stretch your retirement dollars. Weighing these considerations will help you determine which location best meets your specific needs.
Florida
Yes, Florida is still a good deal for retirees. As of 2011, the state sales tax rate is about 6 percent, and real estate is less expensive there now than before the boom in 2007 to 2008. Since taxes and the cost of housing eat up much of your budget, looking at communities in Florida that are not near the higher-cost cities like Miami, Orlando and Palm Beach offer better housing values. Plus, Florida does not have personal income, inheritance or gift taxes, according to a "U.S. News" report.
Pennsylvania
If you still love the changing seasons and don't want to move south, another income-tax-friendly state is Pennsylvania, according to Kiplinger's 2010 to 2011 reports. The state does not tax Social Security or any other public or private pensions if you have them. Plus the distributions you take from your IRA, 401K, deferred compensation plans or other retirement accounts are not taxed as income. The tax rate on other income is a flat 3.07 percent. It has a sales tax of 6 percent, but basic necessities including food, clothing and medications are exempt. Property taxes are a bit pricey in some areas and are controlled by local communities, so due diligence is required before you buy.
Texas
Texas offers many types of topography and climates. The cost of living in areas such as Fredericksburg and Fort Worth may well be lower than where you live now, and they offer solid access to cultural events, educational opportunities, excellent health care, a zoo, botanical gardens, art museums and music festivals. These communities offer discounts to individuals over 65, including free and reduced rates at their colleges and universities. Housing is generally affordable in these friendly communities, and special apartment units for seniors are often available.
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