According to a recent Bankrate analysis, Michigan ranks as the most affordable state to retire in 2022, due to a low cost of living and light tax burden for residents.
In creating the list, Bankrate ranked states according to five categories: affordability; health and wellness; culture and diversity; weather; and crime. To calculate affordability, Bankrate analyzed the July 2022 Cost of Living Index from the Council for Community and Economic Research, as well as property and sales tax rates from the Tax Foundation’s 2022 Rankings.
Here are the seven most affordable states to retire, according to the analysis:
- Michigan
- Tennessee
- Missouri
- Mississippi
- Kentucky
- Oklahoma
- Georgia
Notably, Florida is missing from this list. Although the state is known to have good tax benefits for retirees, it came in at No. 18 for affordability since the state’s cost of living has been rising. However, the state scored high in other categories, including ranking No. 1 for culture and diversity and No. 5 for weather.
If you want to make your money stretch in retirement, there are a number of variables to consider, such as how your income will be taxed and how you’re going to spend your money in retirement. Additionally, consider what activities you’d like to pursue and what locations (n the U.S. or beyond!) will make those possible.
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