Understanding the modern retirement move
In the past, the conventional wisdom for retirement moves often pointed retirees toward sunny, low-tax states like Florida and Arizona. While these destinations remain popular, recent analyses reveal a more nuanced picture of where and why seniors are relocating. Economic pressures, shifting priorities, and a desire for different lifestyles are all influencing where today's retirees choose to call home.
Top US states for retiree migration
For years, states in the Sun Belt have dominated retirement rankings due to favorable tax policies, warm weather, and a high concentration of retirement communities. Based on recent data from sources like SmartAsset and AARP, here are some of the states with the highest net migration of retirees:
- Florida: The perennial leader, Florida consistently attracts the highest number of new retirees each year. Its draw is a combination of zero state income tax, warm weather, and an abundance of recreational activities, from beaches to golf courses. Despite its popularity, some areas face increasing costs for housing and insurance.
- North Carolina: A strong second-place contender, North Carolina offers a more moderate four-season climate and a diverse landscape, from mountains to coastlines. The state has seen a significant influx of retirees seeking a lower cost of living and a different pace than Florida.
- Arizona: A long-standing favorite, Arizona continues to draw retirees with its dry climate and access to the outdoors. The Phoenix metro area, in particular, attracts many older adults.
- Other notable states: States like South Carolina, Georgia, and Texas also rank highly for inbound retiree migration, offering a similar combination of affordable living and appealing climates. Some studies also highlight unexpected contenders like New Hampshire and Maine, which attract retirees with a focus on safety, healthcare, and smaller populations.
Where retirees are leaving
High-cost, high-tax states are seeing the largest exodus of retirees. Factors such as expensive real estate, high property taxes, and state income taxes on retirement income drive seniors to seek more financially sustainable locations. The states with the highest net loss of retirees include:
- California
- New York
- New Jersey
- Illinois
The top retirement cities
Beyond state-level trends, specific cities and towns stand out as popular hubs for retirees. These locations often offer a balance of affordability, amenities, and community tailored to an older population.
- Mesa, Arizona: This southwestern city gained the most retirees in a recent study, highlighting the sustained appeal of the region.
- Henderson and North Las Vegas, Nevada: These cities offer a mix of affordable living and proximity to big-city amenities without the hefty price tag of California.
- Raleigh, North Carolina: Attracting both new retirees and "half-backs" (retirees who moved to Florida but came back north), Raleigh offers a moderate climate and a lower cost of living.
- Naples, Florida: Though Florida sees a high number of new retirees, specific cities like Naples attract those seeking a less congested, low-crime environment.
- Lincoln, Nebraska: Studies focusing heavily on affordability and quality of life sometimes reveal surprising top cities. Lincoln, for example, is recognized for its access to parks and a strong community.
Factors influencing the decision to move
Relocating for retirement is a major life decision, and finances are often the primary driver. However, other factors also play a significant role in where retirees choose to settle.
Cost of living and taxes
For many retirees on a fixed income, stretching their savings is a top priority. Moving to a state with a lower cost of living, lower taxes, or no state income tax can make a significant difference. Tax-friendly states often exempt Social Security benefits, pension income, and retirement account withdrawals.
Climate and weather
The desire for warmer weather is a classic retirement motivation. Many retirees seek to escape harsh winters, which is a major factor in the popularity of the Sun Belt. However, others might prioritize four seasons or a dry climate for health reasons, demonstrating that climate preferences vary.
Healthcare access and quality
As people age, access to quality healthcare becomes increasingly important. Many retirees move to areas with a strong healthcare infrastructure, including top-rated hospitals, specialists, and senior-specific medical services. Some states, like Minnesota and Wisconsin, rank highly for healthcare, even if they aren't traditional retirement destinations.
Lifestyle and community
Retirement is a chance to pursue hobbies and interests that were not possible during working years. This can include anything from outdoor activities like hiking and fishing to arts and culture. Finding a community with a large senior population and ample opportunities for social engagement is often a key consideration.
Proximity to family
Some retirees choose to move closer to their children and grandchildren, an increasingly common trend. This provides a vital support network for both the retirees and their families and combats loneliness.
A comparison of popular retirement states
| Feature | Florida | Arizona | North Carolina | New Hampshire | Idaho |
|---|---|---|---|---|---|
| Net Retiree Migration (2023) | +44,504 (Highest) | +20,203 (Third Highest) | +20,369 (Second Highest) | Net Inflow (Top 10) | Net Inflow (Top 10) |
| State Income Tax | No state income tax | State income tax applies | State income tax applies | No broad-based income tax | State income tax applies |
| Climate | Warm/humid, prone to hurricanes | Warm/dry, desert climate | Four seasons, moderate | Cold winters, four seasons | Four seasons, mountain/outdoors |
| Cost of Living | High costs in some areas | Varies by location, generally rising | Relatively lower cost of living | High cost of living | Rising housing costs |
| Top Cities | Naples, St. Petersburg | Mesa, Scottsdale | Raleigh, Durham | Concord, Manchester | Boise, Meridian |
| Pros | Tax benefits, beaches, activities | Dry heat, outdoors, established communities | Four seasons, diverse landscape, affordability | Safety, health care, no income tax | Outdoors, safety, smaller population |
| Cons | Rising insurance, high humidity | Extreme summer heat | Moderate weather, rising popularity | Cold winters, high cost of living | Higher taxes on retirement income |
The international option for retirement
While many retirees remain in the US, some are choosing to move abroad for a different experience. Countries in Latin America and Southeast Asia, such as Costa Rica, Panama, and Thailand, often offer a lower cost of living and a welcoming lifestyle. Europe also offers options like Portugal, known for its safety and favorable tax policies for expats. Retiring abroad is an option for those who want to maximize their retirement income, experience a new culture, and enjoy a different quality of life. For more on global options, consult authoritative resources on international relocation, such as the guides published by International Living: https://internationalliving.com/.
Conclusion
While states like Florida and Arizona continue to be top destinations, the question of where do most retired people move to is more complex than it once was. Factors like cost of living, taxes, healthcare, and lifestyle preferences all influence a retiree's choice. Modern retirees are a diverse group, and their destinations reflect their varied priorities, whether it's chasing adventure in a rural state, finding affordability in the Midwest, or moving abroad for a new cultural experience. By understanding the data and the underlying motivations, prospective retirees can make a more informed decision about where to start their next chapter.
