If your retirement is five, or 10, or even 20 years away, you should be learning about topics such as Social Security and Medicare, so that you can make smart decisions about them at the right times. You might also consider relocating in retirement -- because some other locations might be better for your final decades than your current location.
If you're starting to imagine retiring in Florida or Arizona, go ahead -- but maybe also consider Louisiana. Here are some pros and cons of retiring there.
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Let's start with the obvious. For many people, Louisiana -- and especially New Orleans -- is simply more fun than other places. There's a lot of great live music to enjoy, and plenty of terrific restaurants where you can down beignets, gumbos, crawfish, and much more. If you enjoy the outdoors, there's abundant natural beauty and plenty of activities to engage in, such as fishing, boating, hiking, and more. (Summers can be hot, though, like Florida and Arizona -- and Louisiana gets more than 60 inches of rain annually, on average.)
Louisiana also boasts a relatively low cost of living, roughly 92% of the national average cost, per the World Population Review. Housing and utility costs are particularly low, and even groceries are about 5% below average. The typical home price in Louisiana was recently only $204,977 -- less than half the national average. Car insurance, though, averages $4,280 annually, 42% above average.
How about taxes? Well, Louisiana is one of the 41 states that do not tax Social Security benefits. But it taxes many pension incomes, and withdrawals from 401(k) and IRA accounts. There's no estate tax in Louisiana.
If Louisiana is starting to look good to you, here are two cautions: MedicareGuide.com has rated Louisiana the 47th-best state in the U.S. for elderly healthcare. (Ouch!) The state is also vulnerable to damaging hurricanes, which can cost homeowners a lot in insurance premiums.
Still, if you're intrigued, learn more about Louisiana before deciding whether it might be a good fit for your retirement plan.
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