For people living on a fixed income, especially one that is as limited as Social Security benefits, living expenses become a real factor when looking for the best places to retire. The more limited the income, the more important it is to take advantage of the breaks available.
Seniors might enjoy living and working where there are no state income taxes if they want to add income to their Social Security supplements. According to Bankrate
, states with no state income tax include Alaska, Florida, New Hampshire, Texas, Nevada, South Dakota, Washington, Wyoming, and Tennessee.
For overall value, these five cities provide the best bang for your Social Security bucks with their low cost-of-living expenses.
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1. Albuquerque, New Mexico
, has median rents at $686 per month, according to MSN.
The city is geared toward services and activities for seniors. Classes at the University of New Mexico are just $5 per credit hour for residents age 65 and older.
2. Austin, Texas
, has the benefits of no state income tax with monthly rents of $887, MSN said. The city has temperate winters, but summer air conditioning expenses can be significant, so shopping for utility budget plans can help. Students 65 and older can get a tuition waiver for up to six credit hours at University of Texas at Austin.
3. Bangor, Maine
, has lots of recreational and outdoor activities for nature lovers. Retirees who love winter outings may also like it in Maine where the spring, summer, and fall months also provide entertainment and recreation. While Maine isn’t usually thought of as a retirement state, there are no state taxes on Social Security benefits, AARP pointed out
4. Greenville, South Carolina
, also has the benefit of no state tax on Social Security income. There are also freebies such as downtown trolleys and enjoyable local attractions. The low cost of living makes this location a real find for people on limited incomes, AARP said.
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5. Daytona Beach, Florida
, is a great location for retirees who can enjoy the beach, the warm weather year-round, and strolling down the boardwalk for the amusements or fine dining establishments nearby. There are no state taxes on Social Security or pensions. Seniors can find plenty of affordable rents to accommodate their budgets, AARP said.
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