Is Minnesota A Good Place to Retire?
Financial World ranks the nine worst states to retire to, based on taxes and cost of living. They are mostly the usual suspects–New York, California, D.C., New Jersey, Oregon, Hawaii. And there at number 8 is Minnesota:
The Land of 10,000 Lakes is consistently included in the list of least tax-friendly states for retirees. The state even taxes social security benefits. Even other retirement income like military, government, and private pensions are taxable.
While the average household income for individuals 65 and older, which is at 13.7% below the U.S. average, is beneath the thresholds for highest tax bracket, the cost of living in Minnesota is way above average.
Some people are willing to brave the high costs in Hawaii to retire there because…it’s Hawaii. Minnesota? Not so much. When is the last time you heard of someone selling his business in Florida or Arizona and retiring to Minnesota?
We can’t do much about our cold climate or the cost of heating your house, but we can do something about taxes. That’s what it would take to get Minnesota off this, and many other, “worst” lists.