Should you retire in Massachusetts?

When you’re planning for retirement — something we should all do, even if retirement is years away — you’ll likely be learning and thinking about topics like Social Security and Medicare. You might also consider relocating in retirement — to save money or for other reasons.

Florida and Arizona are commonly regarded as top retirement destinations and offer plenty of benefits. But you might also consider Massachusetts. Let’s look at some pros and cons of this.

Image source: Getty Images.

First we’ll get the biggest downside out of the way: Massachusetts can be expensive. According to the World Population Review, the total cost of living is 48% above the national average. Food costs are only about 5% higher than average, and healthcare costs are about 13% higher. But housing costs are more than that twice national average. The average home price in Massachusetts was recently $653,648, although you can find many higher and lower prices, of course. This is within the reach of many, but beyond the reach of others. And on a more positive note, the average annual cost of car insurance in Massachusetts was recently $2,315 — about 23 percent below the national average.

Some have called Massachusetts “Taxachusetts.” Is that correct? Well, know that Massachusetts is one of the 41 states where Social Security benefits are not taxable. But many retirement incomes are, as are withdrawals from 401(k) and IRA accounts. There is also an estate tax, although $2 million is exempt.

I move on to more positive attributes. The folks at MedicareGuide.com rated Massachusetts the third best state in the nation for health care for seniors, rating well on cost, quality and access. Like many states, Massachusetts boasts plenty of natural beauty and outdoor recreation, but unlike many states, it’s home to plenty of cultural offerings. This is in part because it also has many university towns, such as Cambridge and Amherst and Williamstown, where residents can enjoy art, theater, music, lectures and more.

If you think Massachusetts might be right for your retirement plan, learn more about it.