Yikes! Maryland Is Among the Top 5 Most Expensive States to Retire
Unless your goal is to create generational wealth or to use it as an income-generating asset, then selling your empty nest and moving somewhere more affordable makes the most financial sense. There is no reason to live inside the Beltway, where the housing prices are astronomical, once you have retired from your inside the Beltway job. Of course, the housing market has changed a lot since you bought the family home, which is now very valuable. The proceeds of the sale will be considerable, provided that you can find someone who can afford to buy. Of course, if you stay in the Maryland suburbs of D.C., you could find your stash of money shrinking much faster than you expected, even when you are no longer paying utility bills or such a large house, parking in garages that cost more per day than most people’s hourly wage, or buying lunches and coffee at work. Recent data show that Maryland is one of the nation’s most expensive states to retire. A Washington, D.C. estate planning lawyer can help you weigh the pros and cons of retiring in Maryland or in another state.
Are You Ready to Move Across the Border to West Virginia?
Bankrate’s rankings of the most and least expensive rates to retire are in for this year, and much to the surprise of no one who lives in the D.C. area, Maryland is one of the most expensive states for retirees. In fact, in terms of the cost of living for retirees, Maryland ranks fifth, behind New York, California, Massachusetts, and Washington. Meanwhile, the least expensive state to retire is West Virginia. In fact, Bankrate considers West Virginia the third best state to retire when you take into account non-financial factors as well as financial ones. West Virginia’s low crime rate and relatively mild winters also make it an attractive destination for retirees.
Florida, the focus of so many retirement daydreams during cold Maryland winters and Beltway traffic jams that you are getting too old to sit through, has long since lost its place among the top ten most affordable places to spend one’s retirement. In 2022, Florida ranked as the 18th most affordable state to retire, but in 2023, it ranks 35th. This is another way of saying that it is only ten states more affordable than Maryland. This is partly attributable to the large numbers of people who have moved to Florida since the beginning of the pandemic, making for a very competitive housing market. Furthermore, the cost of homeowners’ insurance in Florida is prohibitively expensive because destructive hurricanes make landfall in Florida so frequently; some insurance companies refuse to issue homeowners’ insurance policies at all.
Contact Tobin O’Connor Ewing About Planning for Housing Expenses in Retirement
A Washington, D.C. estate planning attorney can help you use the proceeds of the sale of your empty nest toward an affordable lifestyle in retirement, whether in Maryland or in another state. Contact Tobin, O’Connor, and Ewing in Washington, D.C. or call 202-362-5900.