The retirement age in America has changed over time. The Social Security Administration keeps a record it calls “normal retirement age.” For people born in1937 and earlier, the age was 65. Over time, the figure has risen. For people born in 1960 or later, the figure is 67.
A number of calculations go into when people retire. One is how much money they get from Social Security and other sources like pensions. Another is how much money people have saved. Many people also choose to move when they retire, and the state where retirees are most likely to move to is Tennessee.
One consideration that may be a factor in the decision to move is the houses they have owned for decades may be too large because their children have moved away. Some have equity in their homes, which allows them to buy a home elsewhere. Retirees often move to places that are warm or where costs of living are low, so they can extend the buying power of their incomes. (What it costs to retire comfortably in every state.)
Hire A Helper, a company that helps people move, recently released its “2021 Study: Where Americans Moved to Retire in 2021.” The study used the U.S. Census Bureau’s Current Population Survey and its Annual Social and Economic Supplements for 2021. In particular, the researchers used the section on who left cities and states in the period. 24/7 Wall St. reviewed the study to find the state where retirees are most likely to move.
Relocation has become a major issue for new reasons, Hire A Helper notes. Up to 3 million Americans were forced to retire earlier than planned because of the COVID-19 pandemic, according to recent estimates from St. Louis Federal Reserve economist Miguel Faria-e-Castro. The percentage of people aged 55 and over who are retired is now 50%, 2 percentage points higher than before the pandemic. (Things to do if you want to retire early.)
The pandemic actually may slow the relocation of retirees. As infections continue to spread, the question of where it is safe has taken on a new dimension. (These are the best and worst states for retirees.)
The state where the highest percentage of retirees move to from another state is Tennessee. One reason given, which is entirely subjective, is the “vibrant cities of Nashville and Memphis.” More objective, Hire A Helper says Tennessee has the lowest tax burden in the country after Alaska.
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