Should you retire to Kentucky?

If you’re a fan of horses, low living costs, and all that Mother Nature has to offer, the state of Kentucky may be the place to retire. Conversely, if you thrive on the hustle and bustle of densely populated metropolitan areas, the Bluegrass State might not be for you.

Living in Kentucky

Life is a little slower than average for most of the state’s 4.5 million residents, but it’s also cheaper. Depending on the expense involved, costs range from 10% to 20% less than the national average. Housing is particularly affordable compared to most other states.

The fees are also modest. This year’s top marginal tax rate is 4%, and Social Security income is not taxed at all. The first $31,110 of other retirement income (from pensions, 401(k) accounts, IRAs, etc.) is also tax-free. The statewide sales tax on most goods is 6%.

Image source: Getty Images.

While living in Kentucky may not cost much, there are other aspects to consider. Outside of the larger cities of Lexington (population 320,000) and Louisville (population 624,000), the cities get surprisingly small. The next largest city is Bowling Green, with a population of just 76,000. Beyond its 20 largest cities, the typical Kentucky city’s population is less than 20,000.

Given these small markets, it might be relatively difficult to find specialized medical services, fine dining, a wide range of shopping options and premium entertainment. That’s the trade-off for clean air, wide open spaces, and access to outdoor amenities like hiking, fishing, camping, and recreational water.

However, in addition to Lexington and Louisville, the city of Cincinnati is within easy driving distance for most Northern Kentuckians. Knoxville, Memphis, and Nashville are accessible to anyone living in the southern part of the state.

Well worth a visit before retirement

Of course, it’s not for everyone. People moving from densely populated cities may or may not like the decidedly slower lifestyle. Most rural areas are very community-oriented, but can also be quiet. If you’re looking for a slower pace, though, it’s definitely worth a visit to see if Kentucky is right for you.