Should You Retire to Rhode Island?

Here’s a hint to help you think about whether you want to retire in Rhode Island: The state’s nickname is the Ocean State. Located in New England, it is one of the original 13 colonies and home to the historic cities of Providence and Newport.

By some measures, Rhode Island falls short, ranked the 30th best state for retirement by Bankrate. For example, it is not one of the 41 states that do not tax Social Security benefits. Retirement income, along with withdrawals from 401(k) and IRA accounts, are either partially or fully taxable. (There are exemptions of up to $20,000 each for retirement and annuity income, which can ease the pain significantly.) The state also has an estate tax.

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What about healthcare? Rhode Island scores pretty well, ranked the 16th best state in the country for health care for the elderly by MedicareGuide.com.

The cost of living, according to the World Population Review, is about 11 percent above the national average—which isn’t ideal, but not terrible either. The average home price in Rhode Island was recently $478,722 — about 31 percent above the national average. Car insurance, too, is a little steep. It averages $3,494 annually, $477 above average.

If your pencil is about to cross Rhode Island off the list, wait for it. Rhode Island is a charming little state with beaches, parks, and plenty of recreational opportunities. It is home to the Johnson & Wales Culinary School and many great restaurants. There’s plenty of history and culture to enjoy in Rhode Island — including theater and music festivals — and Rhode Islanders are also only one to three hours away from Boston, Vermont, New York and Maine .

The climate, meanwhile, is moderate. Still, hurricanes hit the state sometimes.

If you’re intrigued, read up on Rhode Island. Consider spending at least a few months in any location you’re considering to make sure it’s right for you and your overall retirement plan.