According to U. S. News & World Report’s Best States for Retirement list, the number one state for retirement is South Dakota. South Dakota stands out in the list due to its affordability, low taxes, low crime rate, and high number of doctor’s offices per capita.
South Dakota also offers no estate or inheritance tax and one of the best prescription drug coverage programs in the nation. Its housing costs remain on the lower end for the US, with a median home value of $164,000 compared to the national median of $219,600.
Additionally, South Dakota has an abundance of outdoor activities and attractions available, including fishing and other outdoor recreation, four national parks, eight state parks, and the world-renowned Mount Rushmore.
Overall, South Dakota is undoubtedly a great place to retire, boasting an exceptional mix of natural beauty, affordability, and low taxes.
How much do you need to retire in New Jersey?
The amount of money you need to retire in New Jersey will depend on a variety of factors, such as your lifestyle, the current cost of living and other expenses. As a general rule, an individual will need approximately 70% of their pre-retirement income to maintain their current lifestyle in retirement.
Additionally, most financial advisors suggest that retirees will need to save at least 8 times their current annual salary, before they can comfortably leave the workforce.
Therefore, if you are currently earning an annual salary of $50,000 and plan to maintain the same lifestyle, you will need to save around $350,000 prior to retirement. This is only the minimum amount needed, as the more you save prior to leaving the workforce, the more comfortable you may feel throughout your golden years.
When determining the amount you will need to retire in New Jersey, there are several other important costs that should be taken into account, such as healthcare. In New Jersey, the cost of health care is slightly above the national average and the premiums for private plans in retirement can quickly add up.
Additionally, taxes can take a large portion of your income in retirement. Currently, New Jersey has an income tax of 8.97%. Therefore, it is important to factor these expenses into your retirement plan.
To sum it up, the amount of money you need to retire in New Jersey will depend on a variety of factors. As a general rule, most financial advisors suggest that retirees should save at least 8 times their current annual salary.
When determining your retirement savings goal, it is essential to take into account additional expenses related to healthcare, taxes and other costs of living in New Jersey.
What state is most favorable for retirees?
The ideal state for retirees is highly subjective as it depends on a variety of factors such as cost of living, access to medical care and facilities, and opportunities for entertainment and social interaction.
However, many retirees seek out states that offer generous tax breaks that maximize their Social Security and pension benefits.
Florida is a popular state for retirees due to its lack of income tax and its warm, humid climate. Other states that offer tax relief for retirees include Arizona, Delaware, Hawaii, Illinois, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming.
All of these states offer at least some exemptions on retirement income for retirees.
When considering which state to retire in, it’s important to consider the cost of living, quality of healthcare, and safety of the state. States like New York, California, and Maine have high crime rates and may not be ideal for retirees looking for a safe environment.
Others, like Vermont, Maine, and New Hampshire, offer a low cost of living, while states like Alaska, Delaware, and Wyoming have no sales tax.
Ultimately, the best state for retirees is the one that meets the individual’s needs and preferences. Compare states on factors such as taxes, cost of living, and quality of healthcare, and determine which one fits your individual lifestyle best.
Will your NJ pension be taxed if you move to another state?
It depends on the other state’s tax laws. However, a general rule is that New Jersey will continue to tax your pension, regardless of where you move within the United States. You may have to pay taxes to both New Jersey and the other state in which you move, as many states have what is referred to as “reciprocity agreements” with other states, which essentially allows them to receive taxes from people who move from other states.
If the other state does not have such an agreement with New Jersey, then the new state may not tax your pension at all. However, it is best to research the other state’s tax laws before making the move, as states can change their tax rules at any time.
At what age are pensions not taxable?
Once you reach age 59 ½, pension income is generally not considered taxable. This applies to pensions from any employer, regardless of whether the employer pays them out in a lump sum or through an annuity or other steady payment plan.
However, if you withdraw funds from your pension before you reach 59 ½, you may have to pay a 10% additional tax on the amount (the early distribution tax). Keep in mind that pension benefits are considered taxable income of the recipient, not the source of the pension.
Pension benefits are subject to federal income taxes and possibly state income taxes, depending on the state in which you reside. The amount of tax you will owe on pension income depends on your taxable income, or the amount of income reported on your annual tax return.
Furthermore, in some cases, you may qualify for certain tax incentives that can reduce the overall taxable amount of your pension income.
Does NJ tax your Social Security?
Generally, New Jersey does not tax Social Security benefits, although some taxpayers may be subject to taxation of a portion of their Social Security benefits. Benefits may be taxed if your “provisional income” exceeds a certain level.
Provisional income is your modified adjusted gross income (MAGI) plus nontaxable interest plus one half of your Social Security benefits. If your provisional income exceeds $50,000 (for taxpayers filing single) or $100,000 (married filing joint), up to 85% of your Social Security benefits may be subject to tax.
Also, pensions and certain other retirement income may impact the taxation of your benefits. Although, Social Security benefits are not taxable at the state level, New Jersey does have a pension income tax that applies to income from pensions and other retirement plans.
Can NJ tax my pension if I move to Florida?
The answer to your question depends on where you received your pension. Generally speaking, if the pension is from the state of New Jersey, then New Jersey will probably still tax your pension even if you move to Florida.
However, if the pension comes from another source such as from a job or from a private retirement account, then New Jersey cannot tax you after you move. In that case, Florida would be responsible for any pension taxes.
It’s important to note that just because you are no longer living in New Jersey doesn’t automatically mean that you don’t need to pay taxes on your pension. The answer to this question will depend on the source of your pension and the laws of the two states.
Therefore, it’s best to speak with a tax advisor to ensure you are properly reporting your pension income in each state.
Why are people leaving NJ?
People are leaving New Jersey for a variety of different reasons. The cost of living in New Jersey is very high and many people find it difficult to make ends meet. In addition, the taxes are also quite high.
Many people are also drawn to other states with more affordable housing and lower taxes. New Jersey also has a high crime rate and some areas have become much more dangerous in recent years. Furthermore, the job market in the state is stagnant and many people are leaving in search of better opportunities elsewhere.
Finally, people may be leaving New Jersey simply because they want a change of pace or scenery – they may be looking for somewhere with more outdoor activities, better weather, and more enjoyable lifestyle.
Is it cheaper to live in Florida or NJ?
The cost of living in Florida compared to New Jersey depends on where in the state you live. Generally speaking, Florida is the more affordable option with many regions offering a cost of living well below the national average.
According to the Council for Community and Economic Research, the average cost of living across the state of Florida is 4.2% below the national average. For example, The Coastal areas like Miami, Tampa, and Jacksonville have a cost of living 8.7%, 3.
1%, and 4.5% lower than the national average, respectively.
In New Jersey, however, the cost of living is very high. According to Sperling’s Best Places, the cost of living in the state is 21.2% higher than the national average, but that number can be as much as 37% higher in certain urban areas like Jersey City.
The coastal regions like Atlantic City can also be quite expensive, with a cost of living 32.3% above the national average.
Overall, when considering housing costs, transportation, groceries, and health care, Florida is usually the more affordable option. In Florida, the median home value is $178,700, compared to $322,300 in New Jersey.
Additionally, the average commute time in Florida is 23.4 minutes, compared to 28.9 minutes in New Jersey.
Ultimately, when considering which state is cheaper to live in, it really depends on which region of each state you plan to live in and what expenses you prioritize.
How do I avoid exit tax in NJ?
The exit tax can be avoided in New Jersey by understanding the conditions and provisions associated with the tax. The exit tax applies to those who have earned an income and moved out of state within a certain period before filing a tax return.
The Exit Tax has been established to ensure that those who are leaving New Jersey will still pay the amount of tax due on the income earned while they were still living in the state.
To avoid this, you must have been in the state for 183 days or more during the taxable year in which you are leaving. If you do not meet this requirement, the Exit Tax may be applicable. If you are found to have unpaid taxes due from prior years, the tax must be paid prior to leaving the state.
Besides understanding these conditions, it is important to file a final return with the relevant authorities before leaving New Jersey to ensure that you are not subjected to the exit tax. Although filing a return is required, you may utilize a tax preparer, accountant or even an online filing service located within the state to help do this.
You may also consider submitting an extension request or take other measures to ensure that the due date of the return is delayed in order to avoid the exit tax.
It is important to note that the Exit Tax is an alternative tax that may be imposed instead of the regular income tax when certain conditions are met. Thus, by understanding the conditions and provisions associated with the Exit Tax, you will be able to avoid this tax when leaving New Jersey.
Where is the safest and cheapest place to live in New Jersey?
The safest and cheapest place to live in New Jersey is Cherry Hill. It is located in Camden County and is home to a great school district and some of the most affordable housing pricings in the entire state.
The median home price in Cherry Hill is just $241,900, and the median rental price for a two-bedroom apartment is $1,305. The crime rate in Cherry Hill is substantially lower than the national average, making it a safe place to live.
Cherry Hill also has plenty of recreational activities for you to enjoy, such as hiking trails, golf courses, and plenty of parks and green spaces. Other amenities that Cherry Hill has to offer include excellent shopping and dining options, as well as easy access to public transportation to get you where you need to go.
All of these factors make it the perfect destination for anyone looking for an affordable and safe place to live in New Jersey.
What county in NJ is cheapest to live in?
The most affordable county to live in New Jersey depends on a number of factors such as employment opportunities, taxes, cost of living, and the quality of the area. According to Get New Jersey Moving, Cumberland County is the most affordable option due to its low unemployment rate and low cost of living.
Additionally, it has the lowest taxes in the state, averaging around 2.9%. For example, the median home price in Cumberland County is around $184,000, which is significantly less than most other counties in New Jersey.
Other counties that offer relatively low costs of living include Salem County and Gloucester County.
It’s important to note that each county in New Jersey offers something unique, so be sure to do additional research to determine which county is the best for you and your family. Other key factors to consider when researching New Jersey counties include: access to quality health care, school ratings, recreation opportunities, and commute times.
Where are houses the cheapest in NJ?
Houses in New Jersey tend to be most affordable in the southern and central regions. While many of New Jersey’s northern counties are home to its biggest cities, they usually have the highest housing prices.
Some of the less expensive cities in the southern region are Vineland, Millville, and Bridgeton, while towns in the central region like Trenton, Phillipsburg, and Princeton tend to have home prices that are among the lowest in the state.
That said, there are still bargains to be had in the northern and more affluent counties, such as Fair Lawn. With some shopping around, it’s possible to find good deals on homes in almost every part of the Garden State.
What city has the lowest cost of living?
As cost of living varies widely based on individual preferences and location, making it difficult to make a single broad statement about any particular city having the “lowest cost of living”. However, according to the Economic Policy Institute’s Family Budget Calculator, some of the cities with the lowest cost of living in the United States include Harlingen, Texas; McAllen, Texas; Spokane, Washington; and Norman, Oklahoma.
Each of these cities are in areas with relatively low housing costs, relatively high wages, and/or low local taxes. Notably, each city also has a population below 250,000, indicating that small cities often have comparatively lower costs of living than larger urban areas.
When considering international cities with the lowest cost of living, locations like Prague, Czech Republic; Buenos Aires, Argentina; and New Delhi, India are among the top contenders. Living in these cities can be significantly less expensive than in their respective countries’ capital cities in terms of rent, groceries, restaurants, and public transportation.
In addition, these cities offer a wide range of cultural experiences. Berlin, Germany; Hanoi, Vietnam; and Kuala Lumpur, Malaysia are other international cities known for their affordable cost of living and great quality of life.
Where is the place to live financially?
The best place to live financially largely depends on individual needs, preferences, and finances. It is important to consider aspects such as cost of living, taxation, quality of life, and job opportunities.
Places with lower costs of living and taxes, as well as higher wages, are generally the most financially favorable. Some of the places often identified as the best places to live financially include Kansas City, Missouri; Sioux Falls, South Dakota; Cincinnati, Ohio; Austin, Texas; and Boise, Idaho.
Many of these locations are known for having a lower cost of living, reasonable taxes, and high wages.
In addition to these cities, there are plenty of other places that may be great for those on a budget. These locations can either offer their own sense of quality and affordability or provide access to a major city with comparable qualities.
Consider looking at medium-size cities and towns, suburbs of major metropolitan areas, rural areas, and even those that offer a mix of city and country living.
When evaluating a place to live, it is important to factor in your personal preferences, budget, career opportunities, family considerations, and quality of life. By researching the area thoroughly and understanding your own priorities, you can make an informed decision and find the best place to live financially.