Living Well on Less: 5 Ways Phoenix Retirement Stays Under $50,000 a Year
DEBARYLIFE – It’s critical to stretch those hard-earned nest eggs as far as possible for retirees on a tight budget. Phoenix, Arizona sticks out as an incredibly reasonable spot to settle down during one’s golden years, according to a recent online research assessing cost of living statistics across major U.S. cities.
After accounting for Social Security income, the research revealed that the average yearly cost of living in Phoenix for a retiree is only $31,642 annually.
5 Ways Phoenix’s Retirement
Here are five strong arguments for retiring to Phoenix on less than $50,000 a year—a goal that can be accomplished, given that The Valley of the Sun is currently home to over 185,000 people who are 65 and older.
1. Cost-effective Housing
Relatively cheap housing in comparison to other large metro regions is one of the biggest draws for retirees on a tight budget that Phoenix offers.
A retiree in Phoenix should budget about $1,841 a month for expenses, according to the report (including common homeownership expenses). If you decide to rent instead, the average monthly rent in the neighborhood for a one-bedroom apartment is approximately $1,312, according to Apartments.com.
Seniors enjoy a wide range of affordable yet pleasant housing alternatives to suit any retirement lifestyle and budget thanks to the number of cost-effective 55+ communities and assisted living facilities around the metro area.
2. Low-ish Taxes
Arizona offers some significant tax incentives that help stretch your retirement income dollars, even though it isn’t a perfect tax haven. First off, Social Security benefits are completely tax-free in the state, which is a big benefit for seniors who depend largely on these payments to pay for living expenses.
In terms of alternative retirement income sources, things are generally better but not quite as ideal. Arizona taxes pensions, IRAs, 401(k)s, and similar distributions in full, just like it taxes ordinary income. But there are a few important exemptions that can drastically lower one’s tax burden.
State taxes on the first $2,500 of each distinct retirement income source are exempt for those 65 years of age and older. Therefore, $7,500 is immediately protected from Arizona taxes if you are getting distributions from a pension, IRA, or 401(k).
In addition to the exemptions specifically for seniors, all Arizonans, regardless of age, are normally eligible to deduct an additional $2,500 from their total state taxable income.
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In comparison to other retirement hotspots, the state’s individual income tax rates are likewise rather average. The total tax burden isn’t particularly low when state and local sales taxes are included, but it also isn’t excessive.
3. Outstanding Medical Care
Seniors need to have access to affordable, high-quality healthcare, and Phoenix delivers on this promise. Numerous top-tier alternatives, including the Mayo Clinic, Banner Health Centers, and HonorHealth institutions, are among the many nationally listed hospitals and medical facilities in the region.
Furthermore, affordable Medicare Advantage plans with all-inclusive coverage are also commonly accessible.
4. Sunny Weather
Phoenix’s warm, sunny weather is undoubtedly one of the main attractions for retirees since it makes it ideal for year-round outdoor activities and vitamin D absorption. For social interaction and physical well-being, retirees can take advantage of community pools, hiking trails, public golf courses, and recreation centers.
While it makes sense that some people are afraid to spend the summer months in the scorching desert heat, many nearby hotels and resorts offer special “snowbird” pricing from May through September.
5. Intense Social Scene
Regarding maintaining social connections, Phoenix is an unexpectedly lively metro region, particularly for retired and active individuals. Retirement should be filled with unlimited entertainment alternatives because of the region’s eclectic mix of eateries, museums, professional sports teams, performing arts institutions, and other attractions.
CONCLUSION
Seniors can easily connect based on common interests and hobbies through dozens of local clubs and community groups. It’s simple for recent immigrants to swiftly create a vibrant new community for themselves because of the abundance of social activities, neighborhood amenities, and walkability of the area.