The Top Retirement States

When You Decide to Retire, Which States are Your Best Choices?

Best States to Retire to When deciding which of the 50 states to retire to, one person's utopia is another person's headache. Personal preferences, financial considerations, climate, attractions, architecture, and cost of living all figure prominently when deciding which city or state to call home.

Do you crave the bustle of a big city, or would you prefer to feed deer each morning on your patio?

Do the changing seasons set the rhythm of your life, or do you want to find your place in the sun?

Are you concerned that you might run out of money before you run out of energy?

Do you cringe when you hear the word "taxes"?

Best Retirement States for Low Taxes

Property taxes, sales taxes, and income taxes, oh my! Kiplinger.com has done a superb job of locating states with retiree-friendly tax structures. Some states tax retirement income, others don't, and few states give retirees a break on property taxes.

A state that boasts no state income tax isn't always the location with the lowest overall tax burden. Drum roll please. The top six picks for best retirement states with the lowest taxes are...

1. Delaware - No sales tax, no tax on social security income, low property taxes, and $12,500 of retirement income can be accumulated tax free.

2. Alaska - Although a distant second place winner, the land of the midnight sun has no state taxes, and in Juneau sales taxes are waived for seniors.

3. Kentucky - The Bluegrass State gives generous tax exemptions on retirement income, doesn't tax food, and boasts super low property taxes.

4. South Carolina - The sales tax here is a reasonable 5%, but food is a taxed commodity. Still, a retired couple living in Columbia can anticipate a total annual tax bill of only $1518.

5. New York - Specifically Albany NY, shows some tax love for retirees. Up to $20,000 of retirement income is deferred from state taxes, and seniors get a break on property taxes.

6. Michigan - With a state income tax exemption of a whooping $72,180 of retirement income per couple, retirees can enjoy life in Lansing for a tax bill of about $2152 annually.

Honorable mention goes to Jackson, Mississippi, Cheyenne, Wyoming, and Carson City, Nevada for their economical retiree taxes that respect a fixed income lifestyle.

Best Retirement States for Lifestyle Choices

Retirement States Uncle Sam isn't the only person to consider when selecting a sensational retirement spot. CNN Money.com studied home prices, median incomes, auto insurance premiums, quality of life, leisure and culture options, weather, health, and the educational level and marital status of your neighbors when putting together their list of the Best Places to Retire. And their selections are...

1. St. Simon Island, Georgia - Sandy beaches, lush marshes, and picturesque scenery, along with fine restaurants and art galleries make this little island a perfect new home for couples who want to get away from it all.

2. Prescott, Arizona - If it is outdoor activity you yearn for, consider this city where 10 golf courses grace the landscape. Horseback riding, bicycling, and kayaking adventures will occupy your hours in this scenic mountainous community.

3. Holland, Michigan - Situated on the shores of Lake Michigan, sailing and ice fishing are the sports to be enjoyed here. If it is seasonal variety that stimulates your senses, the tulips blooming in spring and the fall colors add charm to this Dutch accented community.

4. Williamsburg, Virginia - With over 100 days of clear weather annually, historic Williamsburg claims to be a Mecca for shopping, fine dining, golf, and of course, it is the seat of American history. Take a step back in time when you move to this colonial city.

5. Walla Walla, Washington - The Italian architecture, art-inspired lifestyle, and cozy cafes of Walla Walla provide a haven for writers, painters, bookworms, and lovers of classical music. Laid back and lovely, this is a community where stress is merely a concept.

Talk to your friends and find out where they plan to retire before settling on your best state to retire to. The best place on the planet for you may be where your friends are. Also, consider the advantages of moving to a college town where students are available at economical rates to mow lawns, shovel snow, or run errands for you.

Another big plus in college towns are the many cultural events, festivals, and fun hangouts where you can mix it up with the younger generation, or take a few classes to expand your own horizons.