Many people wonder whether they should move after retirement. Doing so may lower your cost of living, bring you closer to your loved ones, and give you more opportunities to participate in your favorite activities, like hiking or golf. One state that many people consider as a retirement destination is Texas. Here are some advantages and disadvantages for the state.
First, Texas ranks as the 42nd best state to retire, according to Bankrate. It scored well for weather, average for health care and affordability, and poor for crime and welfare.
But don’t ignore it yet. Let’s dig into some details.
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Texas’ weather is generally mild, but summers can be very hot, with occasional hurricanes and floods. Opportunities for outdoor recreation abound, and for those who enjoy the arts and music, there are also plenty of outdoor recreation possibilities in Texas, especially in and around college towns like Austin. The latter city also has many great restaurants, but home prices are above average.
However, the overall cost of living in Texas is 7% lower than average, according to the World Population Review. Utility bills are about 6% higher than the Texas average, but groceries are about 5% cheaper.
Housing costs are even lower, with the typical home price in Texas recently being $309,897, about 15% lower than the national average. Car insurance also averages $2,926 per year, which is $91 less than the average. Keep in mind that home prices vary widely depending on location.
What about health care? Texas is ranked the 35th best state in the nation for senior care by MedicareGuide.com. That’s not great, but it’s better than 15 other states.
When it comes to taxes, Texas is one of 41 states that doesn’t tax Social Security benefits. Pension income and withdrawals from 401(k) and IRA accounts are also not taxed. Texas has no personal income tax or inheritance tax.
So consider Texas as a potential retirement location. If you’re serious about it, why not try living there for a few months before deciding on permanent residency?
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Should you retire in Texas? Originally published by The Motley Fool
