Should You Retire To South Carolina?

If you’re thinking about moving for retirement, consider South Carolina. It was recently ranked the fourth best state to retire to by the folks at Bankrate. Below that top number lies a mix of results. It was ranked 33rd and 31st for quality and cost of healthcare and crime, respectively, but ninth for weather and 17th for affordability. Let’s take a closer look.

According to the World Population Review, the cost of living in South Carolina is about 96.5% of the national average, with utilities costing slightly more than average, housing costing slightly less, and other factors such as food costs about average. The average home price in South Carolina was recently $301,813 — about 17 percent below the national average.

Auto insurance is also average, averaging $3,133 annually, $116 above average. Of course, home prices will vary substantially by location, and desirable places like Charleston and Hilton Head Island will have higher home prices.

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South Carolina has a moderate climate, it generally doesn’t get too cold in the winter. Summers can be hot though, and there’s always a chance of hurricanes or floods.

Those who enjoy outdoor activities such as hiking, fishing, boating and camping will find plenty of opportunities. Fans of cultural activities can also be happy, especially if they live in or near larger cities or university towns. Charleston in particular offers great restaurants, museums and more.

Healthcare costs and affordability are big concerns for many retirees. In that respect, South Carolina is not great, ranked 42nd best in the nation for health care for the elderly by MedicareGuide.com.

Taxes, however, are another story. South Carolina is one of 41 states that does not tax Social Security benefits. Pension income and withdrawals from 401(k) and IRA accounts are partially taxable. (However, the state excludes pension income up to $10,000 from taxation.) The state has no estate tax.

As you plan for your retirement — and we all need a good retirement plan — consider South Carolina. But weigh the pros and cons carefully and maybe try living there for a few months first.