The 2025 Social Security COLA Falls Short: Discover 11 Best States to Retire and Offset this Gap
Wednesday, Oct 9, 2024 12:36 am ET
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The Social Security Administration (SSA) has announced a 2.5% cost-of-living adjustment (COLA) for 2025, a significant decrease from the 3.2% increase in 2024. This lower COLA may leave many retirees struggling to maintain their financial well-being. To help offset this gap, we have identified 11 states that offer a combination of economic stability, job opportunities, and retirement-friendly policies, making them ideal for retirees seeking to supplement their income and improve their quality of life.
1. **Hawaii**: Known for its high cost of living, Hawaii offers a state income tax exemption for Social Security benefits, which can help retirees keep more of their income. Additionally, the state provides a tax credit for low- to moderate-income seniors.
2. **Alaska**: Alaska offers a permanent fund dividend to all residents, including retirees, which can help supplement income. The state also has no state income or sales tax, making it an attractive option for retirees.
3. **Florida**: Florida is a popular retirement destination due to its mild climate and lack of state income tax. This can help retirees keep more of their Social Security benefits and other retirement income.
4. **Nevada**: Nevada offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a low cost of living compared to other Western states.
5. **South Dakota**: South Dakota has no state income tax, making it an attractive option for retirees. The state also offers a property tax exemption for low- to moderate-income seniors.
6. **Wyoming**: Wyoming has no state income tax and a low cost of living. The state also offers a property tax exemption for low- to moderate-income seniors.
7. **Utah**: Utah offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a strong job market, which can provide opportunities for part-time work.
8. **Idaho**: Idaho offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a low cost of living and a strong job market.
9. **New Hampshire**: New Hampshire has no state income tax, making it an attractive option for retirees. The state also offers a property tax exemption for low- to moderate-income seniors.
10. **Colorado**: Colorado offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a strong job market and a high quality of life.
11. **Montana**: Montana offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a low cost of living and a strong job market.
These 11 states offer a combination of economic stability, job opportunities, and retirement-friendly policies that can help retirees offset the lower 2025 Social Security COLA. By considering factors such as cost of living, tax policies, and job opportunities, retirees can make informed decisions about where to live and how to supplement their income.
1. **Hawaii**: Known for its high cost of living, Hawaii offers a state income tax exemption for Social Security benefits, which can help retirees keep more of their income. Additionally, the state provides a tax credit for low- to moderate-income seniors.
2. **Alaska**: Alaska offers a permanent fund dividend to all residents, including retirees, which can help supplement income. The state also has no state income or sales tax, making it an attractive option for retirees.
3. **Florida**: Florida is a popular retirement destination due to its mild climate and lack of state income tax. This can help retirees keep more of their Social Security benefits and other retirement income.
4. **Nevada**: Nevada offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a low cost of living compared to other Western states.
5. **South Dakota**: South Dakota has no state income tax, making it an attractive option for retirees. The state also offers a property tax exemption for low- to moderate-income seniors.
6. **Wyoming**: Wyoming has no state income tax and a low cost of living. The state also offers a property tax exemption for low- to moderate-income seniors.
7. **Utah**: Utah offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a strong job market, which can provide opportunities for part-time work.
8. **Idaho**: Idaho offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a low cost of living and a strong job market.
9. **New Hampshire**: New Hampshire has no state income tax, making it an attractive option for retirees. The state also offers a property tax exemption for low- to moderate-income seniors.
10. **Colorado**: Colorado offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a strong job market and a high quality of life.
11. **Montana**: Montana offers a state income tax exemption for Social Security benefits and a tax break for low- to moderate-income seniors. The state also has a low cost of living and a strong job market.
These 11 states offer a combination of economic stability, job opportunities, and retirement-friendly policies that can help retirees offset the lower 2025 Social Security COLA. By considering factors such as cost of living, tax policies, and job opportunities, retirees can make informed decisions about where to live and how to supplement their income.