Should You Retire in New York State?

Should you relocate and retire in the state of New York? You may want to, as it offers a lot for different kinds of people. You might enjoy the hustle and bustle of New York City, with its myriad opportunities to enjoy great restaurants, theater, art, and concerts. Or you might enjoy more suburban settings in the New York metropolitan region -- or more rural settings upstate. The state offers lots of natural beauty to enjoy when hiking, fishing, camping, skiing, golfing, and so on.

New York's overall cost of living is fairly close to the national average, per the World Population Review -- except for housing. The typical home price in New York was recently $452,823, about 24% higher than the national average. But the median home sale price in Manhattan was recently $1.3 million. Statewide, the average annual cost of car insurance was recently $4,200 -- about 39% above the national average.

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All folks planning their retirement need to factor healthcare costs into their calculations and deliberations. Know that while New York City has some amazing medical facilities, New York state is ranked 27th-best in the nation for elderly healthcare, per MedicareGuide.com. Clearly, when it comes to various costs and amenities, much will depend on where, exactly, you live in New York.

How about taxes? Well, New York is one of 41 states that do not tax Social Security benefits, though 401(k) and IRA withdrawals and many (but not all) pension incomes are taxable. (Note that pension or annuity income up to $20,000 may be excluded from taxation in New York.) New York also has an estate tax, but it only applies when your estate's value is near $7 million.

A few downsides to New York are that traffic can be heavy in and around cities, and that like many other states, there are natural disaster risks -- in this case hurricanes, floods, and blizzards.

Think through any relocation decision carefully -- and perhaps spend at least a few months living in any spot of interest, to try it out.

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