BALTIMORE (WJZ)—Maryland’s baby boomers might want to pay attention. It turns out our state doesn’t rank so high on the list of places to live out your retirement golden years.
Derek Valcourt explains why Maryland is listed among the worst states to retire.
Bottom line: here in Maryland, turns out those retirement dollars you’ve worked so hard to save just won’t go as far.
“It gives me an opportunity to do the things that I’ve always wanted to do but never could,” said Mary Bare, retiree.
Bare, who is recently retired, and her husband are selling their Westminster area home — heading south to retire rather than staying in the state where they raised their six children.
“It’s a lot cheaper down there. We can sell our house here and get a 10-acre farm or 15-acre for what we’d sell a quarter acre for,” Bare said.
She isn’t alone.
A new Bankrate.com study ranks Maryland the ninth worst state to retire. It’s blamed in part on the high cost of living here –the 11th highest of any state in the country.
Also to blame is our higher tax burden–the 7th highest in the country–where state and local taxes combined can eat up as much as 10.6 percent of our income.
“It makes our job a little bit difficult,” said Diane Morley, The New Wealth LLC.
Retirement planners like Morley agree. For some clients, Maryland taxes– including the estate tax and pensions tax–make leaving more attractive.
“Up and down the East Coast, other states do not have the retirement pensions tax so that makes a big difference,” Morley said.
Financial advisors insist you can make a Maryland retirement work, but it all starts with planning.
“Don’t necessarily think that there aren’t any strategies for you. There can be a strategy where we can help you retire where you want to and make sure you don’t outlive your money,” said Christine Schmitz, Glass Jacobson financial adviser.
Bare’s mind is made up. She’ll live on her retirement salary in a more affordable North Carolina.
“Living in Maryland just doesn’t offer us that opportunity,” she said.
The number one worst state to retire in is New York with its sky high taxes.
Colorado and South Dakota grabbed the top two spots on the list of the best states for retirees.
Maryland’s beautiful weather was seen as a bonus in the retirement survey. Our weather is seen as the 13th best out of the 50 states.
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