Should you retire to Texas?

Many people wonder if they should move in retirement. Doing so could lower their cost of living, bring them closer to loved ones, or give them more opportunities to participate in activities they enjoy, such as hiking or golfing. A state that many consider for retirement is Texas. Here are some pros and cons for the state.

For starters, Texas is the 42nd best state in which to retire, according to Bankrate. It scores well on weather, average on healthcare and affordability, and poor on crime and well-being.

Don’t dismiss it yet, though. Let’s dig into some details.

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The weather is generally moderate in Texas, but summers can be quite hot, and hurricanes and floods occur from time to time. There is plenty of potential for outdoor recreation, and those who enjoy art and music can find plenty in Texas as well, especially in and around college towns like Austin. The latter city also offers plenty of great restaurants, although house prices are above average.

However, the overall cost of living in Texas, according to the World Population Review, is 7% below average. Utilities cost about 6% more than the Texas average, but food costs about 5% less.

Housing costs are even lower, with the average Texas home price recently at $309,897 — about 15 percent below the national average. Auto insurance is also on the low end, averaging $2,926 annually, $91 below average. Keep in mind that home prices will vary substantially by location.

How about health? Texas is ranked the 35th best state in the nation for health care for seniors by MedicareGuide.com. It’s not great — but it’s better than 15 other states.

When it comes to taxes, Texas is one of 41 states that does not tax Social Security benefits. Retirement income, along with withdrawals from 401(k) and IRA accounts, are also tax-free. There is no personal income tax in Texas and no property tax.

So consider Texas for retirement. And if you’re serious, maybe try living there for a few months before committing to permanent residency.