Where Should I Retire?: Our retirement budget is $38,000 a year so we can’t afford to stay in California—where should we move?

by | Jul 23, 2022 | Stock Market

Hello, I am hoping for suggestions on where my husband and I could afford to live on our $38,000 annual budget. He is 71, disabled and receives Social Security. I am 64. We are looking for a more friendly retirement state with lower taxes and a lower cost of living. 

I have recently retired from a job with the state of California and get a pension. However, after six months of retirement, I am ready to re-enter the workforce. Even though our budget will be more in the future, I would like a place that we can afford on our current budget. Thank you, Derinda Dear Derinda, I’ve got some good news for you: most states don’t tax Social Security checks. Depending on how the state treats your pension income, that may be tax-free too. Or you may just pay a small amount — even in California. (I used this retirement tax calculator from Smart Asset, but you should verify your numbers with a tax pro.) There are always other taxes, though, starting with sales taxes. And city services, from road repairs to senior centers and parks, need to be funded somehow. You didn’t indicate any preference for where in the country you’d like to live. Given your husband’s disability, easy access to medical care may be even more important than it is for other retirees. I also looked for a place on solid economic footing so that you’ll have an easier time finding a job.  I budgeted for rent of $1,000 or less a month, which ruled out areas where home prices (and rents) have skyrocketed in the wake of COV …

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