In recent decades, Arizona has proved to be one of the most popular destinations for retiring Americans. Between 2010 and 2018, Arizona’s median age rose by 5.8 percent, the fourth-fastest rate in the country. There is a reason retirees find the state attractive: it has mild winters, and the cost of living is low. Because of the state’s popularity for retirees, the state has ample attractions and resources for people who wish to enjoy their Golden Years in reasonably priced comfort.
Here’s a closer look at retiring to Arizona:
“Snowbirds”
Many retirees move to Arizona on a full-time basis; others leave their primary homes and spend the winter there as so-called “snowbirds.” The proliferation of remote work opportunities has made both prospects easier for older Americans who still work: after all, they can work from anywhere as long as they have a reliable high-speed internet connection and a camera-equipped device. A study conducted by Arizona State University reported that Arizona’s population rises by nearly 300,000 each year in the form of retirees who temporarily settle in the state during the winter months.
Lower Cost of Healthcare
Seniors tend to use more healthcare resources than other age groups, and the cost of healthcare in Arizona tends to be lower. The average for home health care in Arizona is $4,004 per month, lower than the national average, while costs for adult day health care are approximately $1,766 per month. Many seniors in Arizona live largely independently but rely on a bit of help with day-to-day activities. For these individuals, the lower cost of health-based assistance is highly attractive, even if they don’t need it yet.
A Good Income Tax Environment
One of the major factors that draw retirees to Arizona is its friendly tax codes. Kiplinger has rated Arizona as one of the nation’s most tax-friendly states. The state does not tax Social Security benefits. For other types of income, tax rates are relatively low — from 2.59 percent (for married filers with as much as $54,544 of taxable income) to 4.5 percent (for married filers with more than $327,263 of taxable income). There is a 3.5 percent surtax on taxable income over $500,000 for joint filers. Additionally, there is no inheritance tax in Arizona, a fact that’s attractive to seniors who wish to leave more to their heirs.
Arizona-based Prime Wealth Advisors is a full-service tax, retirement planning, estate, and wealth management firm. We can help you protect your wealth and structure a secure income stream in retirement. Call 623.77.PRIME or visit our website for more information.
