Smart Asset – Nick Wallace – 05/04/2016
As the baby boomer generation ages into their 60s and 70s, the number of retirees in the United States is going to increase. So too will their economic sway. Many retirees, no longer anchored to a city or region by their job, choose to pack up and leave. Some seek a lower cost of living. Others want beautiful scenery, warm weather or both. Some are looking for lower taxes on their retirement income.
Regardless of their reason for relocating, those retirees who do move will have a direct impact on two places: the one they are leaving and the one to which they are moving. They will bring with them an average of $15,528 annually in Social Security income, along with their income from other sources like a 401(k) or pension. As a result, their new home will see added demand for goods and services, while the place they leave will see the opposite impact.
Warm weather appears to be key, but taxes also seem to be an important draw for seniors. Along with Florida, three of the other top 10 states with the highest net migration have no state income taxes (Texas, Nevada and Tennessee). Delaware has no sales tax and some of the lowest property taxes in the nation.
The Cities Where Retirees Are Moving