Should You Retire to New Jersey?

New Jersey? Retire to New Jersey? Not Florida or Arizona? Hear me out, because for some people, New Jersey can be a great place to relocate for retirement. It’s not as hot as Florida or Arizona and has beaches and natural beauty, too. (It’s also the only state where you’re not allowed to pump your own gas — having someone else pump it for you can be welcome in retirement.)

If you enjoy outdoor recreation such as hiking, biking, boating, camping, golfing, or just hanging out at the beach, you’ll find it easy to do in New Jersey. (Call the beach the “shore”, though.)

Image source: Getty Images.

The cost of living in New Jersey is slightly higher than average — by about 14 percent, according to the World Population Review. Healthcare, food, and transportation costs are fairly close to average, but housing costs are 37% above the national average. Indeed, the average home price for New Jersey was recently $550,459 — 51 percent above the national average. (Remember, that’s an average, though—you can find much cheaper (and more expensive) homes, depending on where you look.) The annual cost of auto insurance is also steep, at $4,316—with approximately 43% above the norm.

Another knock against New Jersey is that it bears the brunt of hurricanes from time to time and experiences flooding. Occasionally, winters can pack in too. When it comes to taxes in New Jersey, the news isn’t all bad. It is one of 41 states that does not tax Social Security benefits. Pension income and withdrawals from 401(k) and IRA accounts are partially taxable, depending on your income. There is no estate tax in New Jersey.

Additionally, the cost, quality, and accessibility of health care are pretty good in New Jersey, according to MedicareGuide.com — which ranks it 13th in the U.S. (Health care is important and often expensive to retirees, so be sure to include this in your retirement planning.)

So consider New Jersey for retirement. It offers at least some of what most retirees are looking for, and in the words of Goldilocks, it could be right for you.