Iowa. Iowa ranks as the most affordable overall state for those living on a Social Security check, with low rent as one of the prime contributors.
No matter where in the United States you live, your Social Security retirement, disability, family or survivor benefits do not change. Along with the 50 states, that includes the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa and the Northern Mariana Islands.
According to Bankrate's study, Florida is the best state for retirement in 2022, followed by Georgia, Michigan, Ohio and Missouri. Alaska, on the other hand, held last place in our ranking. The state was dragged down by back-of-the-pack scores in affordability and weather.
1. Florida. Florida takes the top marks in the rankings, with relatively low costs of living and a high percentage of retirees to mingle with.
The ten most tax-friendly states for retirement (in no particular order) are Alaska, Flroida, Georgia, Kentucky, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, and Wyoming.
Alaska is the top state for fiscal stability. It's followed by South Dakota, Tennessee, Idaho and Utah to round out the top five. Half of the 10 states with the best fiscal stability also rank among the top 10 Best States overall.
Nine of the 13 states in the West don't have income taxes on Social Security. Alaska, Nevada, Washington, and Wyoming don't have state income taxes at all, and Arizona, California, Hawaii, Idaho, and Oregon have special provisions exempting Social Security benefits from state taxation.
Panama offers a dry, warm climate year round and a very low cost of living–with beach views. You can retire comfortably on $1,300 per month, and it's one of the best countries for quality of life. What's more, English is widely spoken, and you can use your US money anywhere across the country.
Social Security offers a monthly benefit check to many kinds of recipients. As of June 2022, the average check is $1,542.22, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient.
Social security benefits are not impacted by geographic location but other federal benefits are.
Social Security provides retirement, disability, and survivor benefits to workers and their dependents. If you get benefits now but you've moved, you must change the mailing address you use for your benefits. If you've moved, even if you're not getting benefits now, you may still want to change your address.
Effective January 1, 2022 the Federal benefit rate is $841 for an individual and $1,261 for a couple. Some States supplement the Federal SSI benefit with additional payments. This makes the total SSI benefit levels higher in those States.
Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average. The median single family home costs around $140,818.
Massachusetts topped 2022's list, touting a score of 62.65 out of 100. New Jersey came in second, dropping from the top spot last year. New York, Idaho and Virginia fill out the rest of the top five states to live in, in that order.
Alabama is the third cheapest state in the United States, with a cost of living index of 87.9. Housing in the state is the second cheapest, only behind Mississippi. The average single-family home in Alabama sells for $170,184.
States That Don't Tax Retirement Income
Eight states have no state income tax. Those eight – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – don't tax wages, salaries, dividends, interest or any sort of income.
Florida, South Carolina, and Arizona are the top three states people are retiring to. New Jersey had the greatest percentage of outbound moves last year at almost 71%. The Mountain West area is one of the most popular regions for retirees.
#1: South Dakota
Tax-wise, South Dakota is one of the best states for retirees. In addition to no state income tax, retired homeowners may also qualify for the state's property tax relief programs.
A good retirement income is about 80% of your pre-retirement income before leaving the workforce. For example, if your pre-retirement income is $5,000 you should aim to have a $4,000 retirement income.