We all complain about Minnesota weather but if that’s not enough to make you move maybe the taxes are. Let’s take a look at the retirement environment heading into 2016 for all of us Minnesotans.
So despite the weather should you stick around? Well once you look around you’ll see some things you might like as a retiree. We are usually a very friendly bunch, we have wildlife galore, and a plethora of outdoor activities, year round. Plenty for the Minnesota retiree to keep active. If you really hate the cold and snow you could always be a snowbird for 3 months of the year.
Everyone Loves Water and other Hobbies
Oh and talk about water. We have 10,000 lakes so you have plenty of options when it comes to a cabin or even your primary residence being on water. And because of the ample supply of water you should be able to move there for less. Remember more supply will mean lower prices. Oh and I haven’t even mentioned fishing yet. Prime retiree pastime. We have some of the best Crappie, Walleye, and Northern Pike fishing in the US.
Fishing not your thing. How about Golf? We have over 400 golf courses and plenty of time to use them. Spring, summer, and Fall provide plenty of opportunities to get in a round. We also have hunting, snow-mobiling, skiing, hiking, camping, and a huge variety of other hobbies to keep you occupied. Remember, you’ll want to have plenty of activities for your grandkids as well. Even if you don’t enjoy an activity, in order to get your family to visit you’ll have to have something for them to do on their vacation.
Let’s Get Down to the Numbers
While it’s not all about cost of living, taxes, and other financial matters this should be a consideration. First off, income taxes are as high as 9.85% for taxpayers earning more than $150,000 if you are single and $250,000 if you are married filing jointly. The cost of living is 3.2% higher than the national average – this is according to Sperling’s Best Places index. However, for your later years, average assisted living expenses are lower than the rest of the US but nursing home costs are slightly above average. This is based on a 2014 study by Genworth, a large provider of insurance including Long-Term Care. Unemployment is at 4.5% so if you want to transition into retirement with part-time work you shouldn’t have a problem finding a job. If you need good tax preparation help in minnesota check out PJF Tax.
Yeah, but where exactly in Minnesota should I Retire?
Ok so you still want to stick around for retirement. Then where in Minnesota should you settle down for the golden years? How about Northfield. Forbes voted Northfield as one of the top places to retire in the US. They call it the best place for a “Well Rounded Retirement.” You can check out their reasoning here. All the above info we discussed above really applies to all of Minnesota so don’t feel like you have move out of your hometown.
Or Maybe Not.
Everyone has their own opinions. Daily Finance ranked Minnesota as the 7th worse state to retire in 2012. The cited the following reasons.
“With no income tax exemptions for pensions or Social Security, Minnesota puts a heavy tax burden on retirees — the nation’s fourth highest levy.”
Overall there are a lot of considerations when deciding where to retire. We think Minnesota is a very viable option whether you are a transplant or a lived here your entire life. Personally, we love it here and while not retired yet don’t anticipate moving when the time comes. With the winter we are having right now (40 degrees in September), the cold is not a reason leave the state.
Remember to always consult your Maple Grove Financial Advisor for more info on when, how, and even where to retire.