There are a lot of decisions to make when planning for retirement, but one of the biggest is where you’re going to live. Florida is known as a great state to retire in, but there are also some other fantastic options that you may have not yet considered. One of potential options is South Carolina. The palmetto state’s tax advantages, lower cost of living, beautiful weather, wide variety of activities, and hospitable culture make it a great option for retirees.
If you’re looking for assistance in creating a personalized retirement savings plan, speak with a team member from Good Life Financial Advisors of Mt. Pleasant today!
Taxes play a major part in retirement planning, and the tax code in South Carolina has multiple rules that retirees may find attractive. One of the biggest of these is that Social Security isn’t taxable. This obviously has a major impact on retirees, since Social Security is an important part of any retirement plan. But the state’s tax advantages for retirement income don’t stop at Social Security.
South Carolina also has a deduction for other types of retirement income beyond Social Security. Those over the age of 65 can claim a $15,000 deduction, and those under 65 can still claim a $3,000 deduction.
South Carolina also has incredibly low property taxes. Further, some retirees may qualify for a homestead exemption, which allows you to exclude $50,000 of your home’s market value from your property taxes.
Cost of Living
Another major advantage of retiring in South Carolina is that the cost of living is considerably lower than in many other states. In fact, South Carolina has the 27th lowest cost of living in the United States. A large part of this lower cost of living is thanks to the lower home price.
The average price of a home in South Carolina is about $170,000. In contrast, the median home price in the United States is about $230,000. The price of a home and the cost of living will obviously vary from city to city, but overall, the prices and cost of living are much lower than in many other parts of the country. For those living on a fixed income, a lower cost of living means that every dollar can be stretched a little further.
Though South Carolina has many tax advantages for retirees and a lower cost of living, the reasons to retire in South Carolina aren’t just financial. One of the most obvious of these non-financial benefits is the beautiful weather. The humid-subtropical climate means that winters in South Carolina are quite mild, which may be appealing to many retirees. Summers can be a bit hot and humid, but for those looking to avoid the heat and humidity, the western hills and eastern cities closer to the ocean tend to be a bit cooler.
Something for Everyone
One of the great things about South Carolina is that it has something for everyone. There are bustling cities, an amazing food scene, miles and miles of beaches, breathtaking hillsides, and much more. The state is known for its natural beauty, which makes it perfect for those who prefer outdoor experiences. However, it also has plenty of cities and cultural experiences for those looking for urban living.
These varying experiences often exist within a matter of miles of each other, and the number of activities that the state offers is also wide-ranging. South Carolina is well-known for its golf courses, but it offers plenty of other activities as well. The warm weather and mild winters make it an excellent place for year-round outdoor engagement.
Finally, South Carolina has a culture that many retirees may find appealing. Southern states are known for their hospitality, and South Carolina doesn’t disappoint. Conde Nast voted Charleston the most friendly city in the United States. Though there is an abundance of things to do and plenty of relatively large cities, the state still has plenty of southern charm and a slower pace of life. For retirees who no longer have full-time jobs or young children to keep them running around, the slower pace of South Carolina may fit them like a glove.
Should You Retire in South Carolina?
Deciding where to retire is an important decision, and the right choice depends on what you’re looking for in retirement. For some, the location of retirement is decided upon based on where family members live. But for others, decisions such as taxes, cost of living, weather, things to do, and culture come into play. If you’re looking into where to move once you retire, take into consideration the top reasons to retire in South Carolina, and speak with a team member from Good Life Financial Advisors of Mt. Pleasant to learn what this means for you financially.