Should you retire to Arizona?

Arizona is widely known as a popular state for retirees. If you are considering moving there, make sure you consider all the pros and cons first. Let’s review a few.

For starters, there’s the weather, which can be a pro or a con for you. Yes, it may be a dry heat, but average high temperatures of over 100 degrees in the summer are still very hot. Winters are likely to feature temperatures in the 40s, 50s, and 60s. When the weather is nice, Arizona offers plenty of outdoor opportunities, such as hiking, biking, camping, and golfing. You can imagine Arizona deserts, but it also has mountains.

Image source: Getty Images.

Those planning for retirement are smart to consider not only the cost of health care, but also its availability and quality. According to MedicareGuide.com, Arizona was recently ranked the 15th best state in the country for health care for the elderly, which isn’t too bad. However, it scored better on cost and quality than affordability.

Where you retire in Arizona can make a big difference, so research your options carefully, as some locations offer greater access to healthcare than others, and some may offer more of what you’re looking for than others. Some also have retirement communities, where you may find like-minded neighbors and many clubs to join and activities to participate in.

Meanwhile, Arizona, like many western states, also offers the possibility of wildfires, dust storms and even flooding. Cost of living can be an issue for you too. Overall, it’s slightly higher than the national average, but housing is 18% higher (per RentCafe.com) — though health care and utilities are 5% and 4% lower, respectively.

Then there are the taxes. Arizona charges a low flat income tax rate of 2.5% and is also one of 41 states that does not tax Social Security. Withdrawals from retirement accounts such as IRAs and 401(k)s are taxable, and pensions are also taxable, although some types of pensions are partially exempt.

So, consider Arizona for retirement, but maybe consider other states as well.