Are you finally ready to make the big move of shifting to a new city to spend your retirement years?
Moving to a new place to live a frugal life is a great idea. You want to live in a place which has low taxes, low expenses, warm weather, and friendly people. But there are some states in the United States which are just not right for a retired couple. Places like New York and Los Angeles might have the best opportunities for young people, but they are debt-traps for the elderly.
Avoid retiring in the following money-grubbing states.
1. New York
There used to be a time when New York considered one of the best states to retire in. But now it is nothing but a polluted and an over-populated city. There are more than 8 million people jammed into this city. The infrastructure has also begun to crumble as it was not built for such a large population.
Often, people hear from the news and media about how great New York is and get fascinated with the idea of retiring there. This is only a fallacy as New York is one of the most expensive places in the world. There is no way you can live here by spending less than 4 percent of your total saving in your first year of retirement.
Maryland is one of the least tax-friendly states. Residents also have to pay a special tax of 1.75% in addition to the state income tax. Moreover, there is a 6 percent tax on every transaction you do. Cities like Baltimore(in Maryland) are considered unhygienic and unclean.
According toNumbeo, a single person living in Baltimore has to spend $937.36 per month. It also ranks 54th in the list of worlds most expensive places to live. Do not get swayed by attractions like Fells Point and Inner Harbour(in Baltimore). They might look great but they falsely represent the state of other places in Maryland.
Connecticut is more tax-friendly as far as shopping is concerned as there are no local sales taxes levied on the residents. But when it comes to real estate, Connecticut has one of the highest property taxes(2.02%) in the entire nation. Moreover, you will also face difficulty in finding part-time jobs here as the state has a negative economic outlook.
4. Rhode Island
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A meal for two in an average restaurant will cost you $60. Living in Vermont is challenging as the winters are a nightmare. Although the temperatures are falling as they used to about 10 years ago, you might still want to stay away from this northern state. Vermont is not very friendly for the business people. According to a report by CNN, businesses have to pay corporate taxes of 8.5% rate for any profit made above $25,000.
The above post is based on stats provided by websites like Numbeo, CNN and Kiplinger. The main factors that influence your decision to move to a new place are state taxation, infrastructure, cost of living, public transport and population. Do not move to a new place without doing adequate research about it. Also, interview other retirees who have been staying in your desired city for more than 2 years.