Arizona has been a top retirement choice for many years. Areas such as Phoenix and Scottsdale have quite a bit to offer, from sporting events to culinary festivals to the great outdoors. In fact, a good number of the 16 million people who travel to Phoenix every year eventually become residents. It’s all too common for Phoenix-area residents to be challenged to meet a native of the area.
So why do so many people choose Phoenix as their destination of choice when they retire?
As a retiree, you’re likely living on a fixed income, which means you’ll want your money to last as long as possible. Arizona happens to be one of the most tax-friendly states, as you do not have to pay taxes on your Social Security income. There is also no inheritance tax or estate tax. But if you’re retiring with a nice pension, Phoenix is not as tax-friendly. Private pensions are fully taxed in the state, although an exemption of up to $2,500 exists for military, state and local government pensions. Pensions from other state governments are fully taxed.
The Phoenix area is relatively affordable when compared to other popular retirement destinations such as Los Angeles, California, which is three times more expensive. According to Payscale, the cost of living in Phoenix is 5 percent lower than the national average. Also, the median home value in Phoenix is $287,856 according to Zillow, which is reasonable compared to many other locations. The Phoenix area also caters to seniors, with countless beautiful resort-style retirement communities offering amenities and an array of activities designed for retirees.
There’s no question that Arizona has the best weather in the country during the tough winter months of November through March, when much of the country is scraping ice off the car. Not only is it warm, but the sun shines over 300 days per year. The humidity is low compared to other desirable retirement locations such as Miami, Florida, where humidity can reach 90 percent. The weather enables residents to spend time outdoors all year and take on the variety of activities that the area has to offer, such as biking and hiking. The low humidity and sunshine can even benefit many health conditions.
During retirement years, access to not only affordable healthcare but quality healthcare is a necessity. The Phoenix area provides access to many top-rated hospitals including the Mayo Clinic, which is nationally ranked in eight specialties, and the Banner Medical System, also nationally ranked with many locations around Phoenix. Health issues fall into the unexpected financial category in retirement, so having good options at your fingertips can be a significant benefit.
Given its amazing weather, Scottsdale is home to world-famous events such as the Barrett Jackson auto auction and the PGA’s Waste Management Phoenix Open every year, bringing attendees from far and wide. In addition to events such as these, the area has countless restaurants, nightlife and shopping to satisfy all tastes. You can also find activities such as boating, fishing and off-roading within a couple of hours of Phoenix, as well as more than 300 golf courses across the state, plus several professional sports teams.
If the Phoenix, Arizona area is on your list of places to retire and you have questions about whether your financial plan will get you there, or if you just moved to the area and want to ensure your financial plan matches your retirement lifestyle, schedule an appointment on our online calendar by selecting the date and time that is most convenient for you! You can also always reach us at firstname.lastname@example.org.
Bayntree Wealth Advisors provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.
Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.