Should You Retire in Maine?
If you're thinking of relocating for retirement, consider Maine as a retirement destination. Here's a look at why you might want to -- and why you might not.
A top attraction for Maine is that it has a solid healthcare system, which can be very important for retirees. (As you plan for retirement, be sure to keep healthcare costs in mind and plan for them, too.) The folks at MedicareGuide.com have rated Maine the 12th-best state in the nation for elderly healthcare. Maine is a rather safe state, as well, though if you read a lot of Stephen King, you might not think so. (King has lived much of his life in Bangor, Maine -- though he reportedly now lives mainly in Florida.)
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When it comes to taxes, Social Security benefits are not taxable in Maine, though withdrawals from 401(k)s and IRAs are. (Remember that Roth versions of these retirement savings accounts feature tax-free withdrawals, though, if you follow the rules.) Pension income is partially taxable, and federal pension income is exempt. The state also offers a property tax relief program for its residents aged 62 or older.
The cost of living in Maine is a bit higher than average -- by about 11.5%, per the World Population Review. Specifically, while healthcare costs are slightly lower than average, other important categories are higher -- such as housing (119% higher) and utilities (108% higher). Groceries are close to average.
The typical Maine home price is about $433,466, roughly 19% greater than the typical U.S. average price. On the other hand, car insurance is significantly lower than average in Maine, recently averaging $2,201, versus the national average of $3,017.
All those facts and figures above may not entice you as much as this: Maine has extraordinarily beautiful scenery, and it offers all kinds of outdoor recreation -- hiking, fishing, boating, golfing, and so on. The winters do get quite cold, but that's when you might enjoy the museums, art galleries, and restaurants of its cities and towns such as Portland, Brunswick, and Kennebunkport.
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