Considering a change of scenery for retirement can be a game-changer. But with so many options out there, choosing the ideal state to settle down in can feel like a daunting task.
While moving overseas might be an option for some, the majority of retirees opt to stay within the United States. Each state in the nation boasts its own unique charm, drawbacks, and attractions, adding complexity to an already personal decision-making process.
As a recent retiree myself, originally from Ohio but now a resident of South Carolina, the thought of relocation has crossed my mind. If I were to pack up and move, my top contenders would be Washington and Tennessee.
Here’s how I arrived at this decision. As retirees, we often rely on investments, savings, and Social Security income. With this in mind, I focused on the eight states that do not tax Social Security benefits, wage income, dividends, or interest. These states include Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.
After this initial consideration, I delved into factors like climate, scenery, outdoor activities, cultural amenities, and urban versus rural lifestyle offerings. Here’s why Tennessee and Washington emerged as my top recommendations for retirees in 2024.
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Experience Nature’s Bounty with Financial Benefits in the Evergreen State
The state of Washington refrains from taxing income, offering a financial advantage to retirees. Moreover, its scenic beauty is unparalleled. Snow-capped peaks, crystal clear alpine lakes, expansive Pacific Northwest forests, rugged coastlines, and quaint seaside communities make up the picturesque landscape of Washington. Even in urban hubs like Seattle, with its vibrant dining scene, cultural attractions, and tech innovations, you’re never far from the grandeur of Mount Rainier in the backdrop.
The moderate climate in Washington, particularly around Puget Sound, allows for year-round enjoyment of outdoor activities like hiking, fishing, and boating. While Seattle may be known for its high cost of living and rainy weather, eastern Washington offers a more affordable living experience with a drier, seasonal climate ideal for agriculture, including apple orchards that thrive in the region.
With its tax advantages, recreational opportunities, top-notch healthcare facilities, and diverse lifestyle options, Washington stands out as a compelling retirement destination.
Embrace Music, Culture, and Natural Beauty in the Volunteer State
If stretching your retirement budget while reveling in live music sounds appealing, Nashville in Tennessee is an excellent choice. Lower Broadway’s Honky Tonk Highway offers non-stop live music performances from talented artists, creating a vibrant atmosphere from morning till late at night, catering to early risers and night owls alike.
For music enthusiasts, exploring Elvis Presley’s legacy in Memphis or immersing oneself in the charm of Dollywood and mountain melodies on the other side of the state are memorable experiences. The entertainment scene is just one of the many reasons why Tennessee made it to my shortlist for retirees. The state, spanning 440 miles in width, offers diverse lifestyle choices catering to a wide range of preferences.
Image source: Getty Images.
Tennessee, like Washington, features distinct regions—albeit three in this case. From Memphis in the west along the Mississippi River to Nashville, the state capital and central hub, to Knoxville in East Tennessee serving as a gateway to the mountains, Tennessee offers a rich tapestry of culture and history. Outdoor enthusiasts can explore the Tennessee and Cumberland rivers and their reservoirs, along with attractions like the Great Smoky Mountains National Park. Thriving small towns host unique festivals and shopping experiences, catering to retirees looking for a vibrant community to call home.
A Personal Decision Tailored to Your Preferences
While both Washington and Tennessee offer favorable tax environments, the cost of living within each state can vary significantly. For instance, Seattle’s living expenses soar 137% above the national average, whereas Spokane in eastern Washington maintains a more reasonable 96% above average cost of living, serving as a vital hub in the inland Pacific Northwest.
Comparatively, even in Tennessee’s costliest markets such as Nashville, living expenses hover around or slightly above the national average. Memphis and Johnson City, nestled amidst the Blue Ridge and Great Smoky Mountains, boast an 88% living cost, providing retirees with affordable yet enriching retirement options.
Deciding where to retire is an intimately personalized process, influenced by a myriad of factors. I hope this overview of Washington and Tennessee serves as a catalyst for your contemplation, regardless of where you currently stand in your career journey.
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