Should you retire to Louisiana?

If your retirement is five, or 10, or even 20 years away, you should learn about topics like Social Security and Medicare so you can make smart decisions about them at the right times. You may also want to consider relocating in retirement — because other locations may be better for your final decades than your current location.

If you’re starting to envision yourself retiring to Florida or Arizona, go ahead — but maybe consider Louisiana, too. Here are some pros and cons of retiring there.

Image source: Getty Images.

Let’s start with the obvious. For many people, Louisiana — and especially New Orleans — is simply more fun than other places. There is lots of great live music to enjoy and lots of great restaurants where you can have beignets, gumbos, crawfish and more. If you love the outdoors, there is abundant natural beauty and plenty of activities to get involved in, such as fishing, boating, hiking and more. (However, summers can be hot, such as Florida and Arizona, and Louisiana receives, on average, more than two feet of rain annually.)

Louisiana also boasts a relatively low cost of living, about 92 percent of the national average, according to the World Population Review. Housing and utility costs are particularly low, and even food is about 5% below average. The average home price in Louisiana was recently just $204,977 — less than half the national average. However, car insurance costs an average of $4,280 annually, 42% above average.

What about taxes? Well, Louisiana is one of 41 states that does not tax Social Security benefits. But it does tax a lot of pension income and withdrawals from 401(k) and IRA accounts. There is no property tax in Louisiana.

If Louisiana is starting to look good for you, here are two caveats: MedicareGuide.com ranked Louisiana the 47th best state in the US for health care for seniors. (Ouch!) The state is also vulnerable to damaging hurricanes, which can cost homeowners big in insurance premiums.

However, if you’re intrigued, learn more about Louisiana before deciding whether it might be a good fit for your retirement plan.