"Each state has its own benefits and drawbacks. The most significant difference in cost of living is typically in housing," said Dean Frutiger, project manager at the CCER in Arlington, Virginia, which sells cost of living indexes on its website www.c2er.org.
Although housing tends to be the biggest expense, most states have a homestead exemption as well as a senior citizen exemption, which is an annual percentage deduction available for residential property that is occupied by a person who is older than 65 years old and has income below the IRS median income guidelines. In Florida, the homestead exemption is only valid if the retiree keeps up residence for six consecutive months.
"Because of the down economy, in some areas it's harder to sell your home and the housing markets in popular retiree states such as Florida and Nevada have stagnated," says Prisuta.
Aside from the South and the Southwest, the great lakes in Northern Michigan and Northern Wisconsin were among the top places to relocate because of their proximity to water and wilderness land, says AARP's migration report.
"In terms of weather, these states aren't attractive, but there's hunting, fishing, hiking, boating and open space. Some in the Northeast area are migrating to Delaware because it's on the Atlantic Coast and has no sales tax," says Prisuta.
The AARP migration report also found differences according to age and income. As age increased, migration among those without disabilities decreased while migration among older Americans with multiple disabilities increased. "This suggests that some relocate in order to adjust to their changing health conditions and potential need for support," says Prisuta. "But overall, people who migrate are relatively self-sufficient with higher income, higher levels of education. They are also younger and more likely to be married so they won't be isolated in a new environment."
-Juliette Fairley