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Retiring Out of State

Retiring Out of State

February 27, 2018
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Where you retire could be as important as when you retire. I covered it briefly here, but we need to dive deeper into this. One of the more popular thoughts about where to retire is retiring out of state, with Florida being the common destination.

Retiring out of state can be a really great option for some, but before you get too ahead of yourself, you need to answer a few questions.

Do you have high property taxes?

A good reason for moving to another state is to escape the high property taxes that you pay presently. Some geographic locations are notorious for having high property taxes, for example, the Northeast. These taxes can also increase due to surrounding school districts looking for more funding.

Income Taxes

Do you want to retire in a different state to avoid paying income taxes? There are seven states that currently do not have any income taxes, including Florida, Nevada, and Texas, to name a few. You can find the whole list here.

Government Pension

Were you in the military or did you work for the federal government? If you did, you will probably receive a pension. You might consider moving to a state that will give you a pass on that pension, in terms of taxation. In some states, a federal government pension is fully or partially tax exempt.


A very popular reason for moving out of state for retirement is you just can’t stand the winters. Here in Wisconsin, our winters get extremely cold and snowy. I have a number of clients who move to a warmer state during the harsh Wisconsin winter.


Before you move or consider moving, you should find out how the healthcare is in your community of choice. Go online, look up healthcare facilities in your desired retirement location, and do your homework. Look at reviews and maybe distance you have to travel.

We all know that healthcare is important, but even more so during retirement. Make this a priority when looking for a retirement destination.

Culture/Senior Living

How does your desired community look? Does it seem like you would enjoy yourself at the various establishments in the area? Are you planning on living in a retirement community that has similarly aged people and numerous amenities?

Loved Ones

Are you able to leave your loved ones behind? Sure you can visit a couple of times a year, but traveling numerous times can get expensive. Instead of moving to another state for 100% of the year, maybe you can split your time 50/50. Unfortunately, this can get expensive as well, paying for and maintain two homes.

Also, if you are taking advantage of income taxes, or lack thereof, you have to make sure you are staying longer, even if it’s one day longer, in the tax-advantaged state.


Retiring in a different state can be scary. It’s not easy leaving your friends and family. However, this could be a very smart move for both your finances and your happiness. Use some of these questions to figure out if retiring out of state is right for you.

Note: This article is for informational purposes only. Please consult with a financial professional regarding your personal financial situation. Do not make decisions based solely on what you read or hear.