As retirement approaches, many individuals find themselves pondering whether they should relocate. The idea comes with its benefits, such as potentially reducing housing, tax, and other living expenses. However, there is the downside of possibly being distant from family and friends.
Nevertheless, it’s an option worth considering, and you might want to set your sights on Minnesota as your new home. That’s right, Minnesota—not the usual choices like Florida or Arizona. While the winters are indeed chillier—with January average highs at 24 degrees and lows that seldom drop below -11 degrees—the summers are quite pleasant. Plus, homes, shops, and eateries are well-equipped with heating during the colder months.
In fact, Minneapolis was recently ranked as the third-best city for retirement by WalletHub.com. The city received high marks for its array of activities (such as senior centers, art galleries, museums, book clubs, and theaters) and for its healthcare. The healthcare ranking considers factors like provider availability, the quality of the public hospital system, and life expectancy, among others. Notably, Rochester, Minnesota, is home to the renowned Mayo Clinic. According to MedicareGuide.com, Minnesota ranks first in the U.S. for elderly healthcare.
Moreover, Minnesota’s cost of living is quite reasonable, averaging about 94% of the national figure, as reported by the World Population Review. Recently, the typical home price was $346,713, approximately 95% of the national average. While healthcare costs are slightly higher than average, housing and utility expenses are below average.
However, retirees should be aware of some drawbacks in Minnesota, particularly regarding taxation. Withdrawals from 401(k) and IRA accounts are taxable, and Social Security benefits are partially taxed within the state.
For those who enjoy staying active and participating in outdoor activities, Minnesota could be an ideal choice. Known as the “land of 10,000 lakes,” the state actually boasts nearly 12,000 lakes, in addition to offering a wealth of cultural events like state and county fairs and music festivals.
While many retirees may choose to remain in their current location, it’s perfectly reasonable to do so. However, if relocation is on your mind, consider spending a few months in your intended destination to truly get a sense of the area.
The $22,924 Social Security Bonus Most Retirees Overlook
If you find yourself among the majority of Americans who are behind on retirement savings, there are several little-known “Social Security secrets” that might help increase your retirement income. For instance, a simple strategy could potentially add up to $22,924 to your annual benefits. By learning how to maximize your Social Security, you could retire with the confidence and peace of mind we all seek. Click here to find out more about these strategies.
Explore the “Social Security secrets” ›
