The Best Places to Retire with Your Federal Pension

A federal pension means you’ll have a fixed income for years to come. While this may provide some stability, it also means you might have to start budgeting differently.

Having to spend your retirement worrying about money is no fun. You’ve worked hard and earned a break, and you should be allowed to enjoy it. So the place where you opt to live is a key factor in your future security.

There are things to consider, of course: tax structure, housing costs, entertainment, socializing, public transit, and senior support resources, to name a few. And so, here is a list of some of the best places for a senior to retire with your federal pension.

Florida

One of the most popular retirement spots is Florida, and with good reason: it’s warm, it’s a nice place for your relatives to visit, and there are other tax-related reasons too. Currently, there is no state income tax in Florida, nor do they impose taxes on Social Security payments.

While city living has it’s benefits, the cost of living there can be expensive, so retirees looking to live in suburban and rural areas can have their dollar stretched much further. That could be the reason why 23 percent of Florida’s population is made up of senior citizens. But with such a large older population, there are plenty of communities and resources for retirees of every income level.

Georgia

If Florida isn’t your bag, you only need to head north one state. Georgia is another good location for retirees. A retirement income exception is available to all people over the age of 62, in addition to plenty of city-issued tax breaks too.

For people looking to have an active social life and community, Atlanta is rich with culture, and plenty of interesting places to eat. And beyond the metropolis itself, there are lots of rural parts of Georgia too that have their share of woods and small-town charm.

Or why choose? A popular new retirement spot it Canton, outside of Atlanta, meaning you get the excitement of the big city, with the naturalistic and relaxing environment of a small town, while having tons of senior living communities for all levels of independence.

Wyoming

In addition to being one of the cheapest cost of living states, Wyoming is also full of natural beauty, and towns like Jackson Hole are great for things like going fishing and game hunting. Cities like Casper and Larmine are affordable, and some of the least expensive places to live in the state, and when you add in the fact that there is no pension or Social Security tax, no state income tax, and other tax exemptions offered only to retirees. Generally, it has lower taxes than most other places.

Alaska

A surprisingly good but not often thought of retirement destination is Alaska. Although it may get a little chilly in the winter, the summer months the state is quite warm. There is no sales tax or income tax. And Anchorage is full of communities geared for retirees, with plenty of things do. Plus Alaska can’t be beat when it comes to natural beauty.

Hawaii

While Hawaii is certainly not the cheapest of these destinations, if you have the means, the quality of life in Hawaii is unparalleled. And any retirees looking to invest in real estate, renting out a property in Hawaii can be quite lucrative. If you use services through the VA, Hawaii has many military bases, so that would be readily available. And, like all the other states mentioned so far, Hawaii does not tax pensions.

Nevada

We all know Las Vegas. While the cost of living may be high there, the trade-off is almost limitless options for entertainment. Casinos feature shows and fancy restaurants, in addition to gambling.

No Social Security tax and no income tax means more money in your pocket. And if you don’t want to live in Vegas, check out nearby Gardnerville, know for its large retiree population, low taxes, and high-class medical facilities.

South Dakota

Not the most glamorous of destinations, South Dakota, does have its perks. Low sales tax, low property tax, no income tax, and no Social Security tax, in addition to a low cost of living rate, and South Dakota will help keep your expenses down. Even in places like Mobridge, a beautiful retiree-filled town along a lake that has good school and low crime.

Regardless of where you end up, it’s important to weigh all your options and see what kind of places cater, specifically to seniors, and how.