If you’re wondering how to retire well in Texas, you are not alone. Over 500,000 people migrate to the Lone Star State every year, and a good number of those are aspiring retirees. Everything is bigger and better in Texas, except the cost of living, and seniors are taking notice.
How to Retire Well in Texas with the Cost of Living
It’s a land of friendly gun-carry laws, great barbeque food, and fierce state pride. For the fledgling Texan resident, it’s essential to know how far your fixed-income dollar will stretch. A cost-of-living index is a tool used to determine how much money is required to pay for basic needs, such as housing, food, and healthcare. The national average is set at 100, so numbers under this are considered more affordable while numbers above, more expensive.
The average cost of groceries is 89.9 for the state, although there is some variation between cities. As far as transportation goes, most people will need a car. Gas is more affordable than other states, but insurance is 27 percent higher than the national average. Housing is fairly reasonable at an 85.9, average although large urban centers like Dallas and Austin are becoming quite expensive compared to the rest of the state.
Let’s talk taxes. It can make or break a retirement budget, so finding the right home for your second chapter is critical. Texas doesn’t have state income tax which makes for a lower cost of living than other states. On the other hand, Texas levies a 6.25 percent tax on most goods and services, which will cost retirees over time. Depending on the area, property taxes can be pricey, impacting a senior’s monthly budget. Also you might want to consider consulting with a retirement planner, to felt more confident about your financial future.
How to Retire Well in Texas & Where
Ever wanted to live in the “Helium Capital of the World”? If so, you’re in the right place. Located in the Texas Panhandle, the city of Amarillo contains an estimated 90 percent of the earth’s recoverable helium reserves. However, if floaty birthday balloons aren’t your thing, here are a few other options.
The city of Fredericksburg is a boon to history-lovers and is full of museums, landmarks, and buildings from a bygone era. It’s a tourist destination, so those who love the finer things will have restaurants, attractions, and shopping to enjoy. With 29 percent of the town’s 11,496 population being senior citizens, it has a thriving community for the contemplative retirement planner to consider. The cost of living is 5 percent less than the national average.
McAllen might be another consideration if you want to live in a larger center. It’s one of the most affordable cities in Texas and is located close to the Mexican border. Retirees make up roughly 13 percent of McAllen’s 143,268 people, and the cost of living is a staggering 24 percent below the national average. Year-round warm weather and excellent amenities make this city a good option for a more budget-conscious senior.
Home to the Alamo, San Antonio is rich in history and tradition. It’s a large urban center with a 1.5 million population and 12 percent of those running north of 65. The cost of living sits 14 percent under the country-wide cost of living. It also offers easy access to healthcare for those who require more consistent medical attention.
Retire Using These Apps
| App | Fess and minimum: | Best for: |
|---|---|---|
| Digit | 30-day free trial period. $5 per month | Setting aside automatically |
| Acorns | $1 per month | Spare change investing. |
| Qapital | $3 membership | Letting you set rules to automate savings. |
Read More:
You Can Win the Retirement Game if You Play by These Rules
Try these 401(k)s to be Ahead of the Retirement Game
5 Tips for Saving Money on Your Retirement Home
Lindsey is a freelance writer in the personal finance and lifestyle sphere. When she’s not at her laptop, she is likely teaching herself a new hobby with a high potential for injury – such as skiing or cooking. Connect with her on LinkedIn and Twitter.
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