Many people, as they approach retirement, wonder whether they should relocate. There are upsides to the idea, as you might shrink your housing, tax, and other expenses. But on the other hand, you may end up far from loved ones.
Still, it's worth at least considering, and you might want to think of Minnesota as your destination. That's right, Minnesota -- not Florida or Arizona. Yes, the winters are a bit cooler -- the average high in January is 24 degrees, but the temps rarely dip below -11 degrees. Summers can be delightful, though, and homes, stores, and restaurants do have heating in the winter.
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Indeed, the folks at WalletHub.com recently ranked Minneapolis as the third-best city for retirement. It scored particularly high for available activities (senior centers, art galleries, museums, book clubs, theaters, etc.) and for healthcare. The healthcare score is based on factors such as availability of providers, the quality of the public hospital system, and life expectancy, among many others. (Rochester, Minnesota is home to the Mayo Clinic, by the way.) Per MedicareGuide.com, Minnesota is No. 1 in the U.S. for elderly healthcare.
Minnesota's cost of living is reasonable, too, at roughly 94% of the national average, per the World Population Review. The typical home price was recently $346,713, roughly 95% of the typical U.S. price. Healthcare costs are a bit above average, while housing and utility costs are below average.
Some downsides to Minnesota for retirees include its taxation. 401(k) and IRA withdrawals are taxable in the state, and Social Security benefits are partially taxable.
If you love being active and enjoying outdoor activities, Minnesota might be a good fit for you. It's called the "land of 10,000 lakes," but it reportedly actually boasts close to 12,000 lakes. It also offers lots of cultural enjoyment, via state and country fairs and music festivals.
Many retirees will decide, quite reasonably, to stay put. But if you're thinking of relocating, consider living in your destination town for at least a few months first, to get a feel for it.
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