When you're planning for retirement -- something all of us should do, even if retirement is years away -- you will likely learn and think about topics such as Social Security and Medicare. You might also consider relocating in retirement -- in order to save money or for other reasons.
Florida and Arizona are commonly thought of as top retirement destinations, and they do offer ample upside. But you might consider Massachusetts, too. Let's look at some pros and cons of doing so.
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We'll get the biggest drawback out of the way first: Massachusetts can be expensive. According to the World Population Review, its overall cost of living is 48% above the national average. Grocery costs there are only about 5% higher than average and healthcare costs only about 13% higher. But housing costs are more than twice the national average. The typical home price in Massachusetts was recently $653,648, though you can find many higher and lower prices, of course. That's out of reach for many, but within reach for others. And on a more positive note, the average annual cost of car insurance in Massachusetts was recently $2,315 -- about 23% below the national average.
Some have called Massachusetts "Taxachusetts." Is that fair? Well, know that Massachusetts is one of the 41 states where Social Security benefits are not taxable. But many pension incomes are, as are withdrawals from 401(k) and IRA accounts. There's an estate tax, too, though $2 million is exempted.
On to more positive attributes. The folks at MedicareGuide.com have rated Massachusetts the third-best state in the nation for elderly healthcare, rating well on cost, quality, and access. Like many states, Massachusetts boasts lots of natural beauty and outdoor recreational activities, but unlike many states, it's home to lots of cultural offerings. That's in part because it and has lots of college towns such as Cambridge and Amherst and Williamstown where residents can enjoy art, theater, music, lectures, and more.
If you think Massachusetts might be a good fit for your retirement plan, learn more about it.
