If you live in an area with a high cost of living, you may be paying more for everyday items.
Reducing your expenses during retirement means you are less likely to need to supplement Social Security .
Doxo, a company that helps consumers manage bill payments, recently released its 2024 Cost of Bills Index. The report found that West Virginians had the lowest bill payments — 25% below the national average.
If you’re considering relocating to save money, here are some crazy reasons why West Virginia might be the best state for retirement.
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1. Low cost of living
According to the doxo report, West Virginia is ranked the cheapest state to live in 2024. The report looked at the average of 10 types of bills: utilities, cable & phone, mobile phone, auto loans, auto insurance, life insurance, health Insurance, alarm & security, rent, and mortgage.
For retirees and those looking to escape higher costs of living, West Virginia provides a financial sanctuary.
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2. Average monthly household bills total $1,596
The average resident in West Virginia spends $1,596 per month, which is 25% below the national average. Simply put, this means a utility bill of $100 elsewhere could be $75 in West Virginia.
Your household size could impact that number, but if you are a retired couple, your costs will likely be lower here than other places.
3. Average mortgage cost is $961
The average mortgage payment of $961 in West Virginia is less than half of the national average, which sits at $2,715.
With the cost of homeownership skyrocketing in the last few years, West Virginia still offers a place where you can get a reasonable mortgage. Average homes in West Virginia are just over 1,700 square feet, and the average home price is $169,446 in 2024, according to Zillow.
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4. Average monthly rent is $846
If you’re ready to downsize from your larger home when you retire, you might consider renting to allow you some flexibility.
Monthly rents are actually cheaper than mortgage costs in West Virginia. Renting offers you a chance to see if West Virginia is the right place for you to retire.
5. Average utility bill is $178.61
The average American spends more than $425 per month on utility bills. This totals more than $5,000 per year.
In West Virginia, people typically spend less than half the national average. Spending half on your utility bill sounds pretty great, right?
6. Low taxes
West Virginia has relatively low tax rates across the board. Combined local and state sales taxes equal 6.75%.
Income tax rates range from 2.36% to 5.12%. However, Social Security income isn’t taxed at all. And there is no estate or inheritance tax. However, pensions and income from retirement accounts such as a 401(k) or IRA are taxed at the state income rate.
For retirees looking to stretch their retirement dollars, West Virginia may offer tax incentives to keep more money in your pocket.
Make Money: 8 things to do if you're barely scraping by financially 7. Low crime rate
For those worried about safety, West Virginia has a low crime rate compared to the national average. This may be due to the smaller than average population or the fact that 21% of the population is over 65. Either way, West Virginia is one of the safest states to live in.
8. Appalachian Mountains
West Virginia is the only state located wholly inside the Appalachian Mountains. It is an outdoor playground with plenty of recreational options. Hiking, skiing, fishing, camping, rafting, and more are all easily accessible.
For outdoor enthusiasts or retirees with lots of time on your hands, West Virginia offers miles of mountains to explore.
9. Get paid to live there
If you are still employed and have the ability to work remotely, you could get paid up to $12,000 just for moving to West Virginia. The Ascend WV program incentivizes people to move to West Virginia. As long as you’re over 18 and can work remotely, you can apply.
The program also offers a free outdoor recreation package that includes passes for off-road excursions, rafting expeditions, and golf trips.
Are you a senior? Avoid these 6 sneaky money mistakes 10. Cold winters
The cold climate during the winter may be a deterrent for some retirees. However, the cold and snow mean you can experience many winter recreational activities. If cold winters are difficult for you, you may want to reconsider West Virginia for your retirement.
11. Rural location
West Virginia’s rural communities are one of the reasons people love living here. If you’re a city-lover or want access to world-class shopping, entertainment, health care, and technology, this may not be the state for you. While you can access all those things within a few hours’ drive, you most likely won’t have access to these conveniences nearby.
12. Job market
Often places that have a low cost of living translates to low wages. The same is true in West Virginia.
The average hourly rate in West Virginia is just over $25. If you are a retiree who decides to go back to work, you may find the job options and wages less than you might hope.
Bottom line
When you’re planning for retirement , choosing a state with a low cost of living, like West Virginia, makes a whole lot of sense. You’ll worry less about running out of money, needing to go back to work, or how you’re going to afford health care.
While there may be drawbacks like a rural location and cold winters, giving you confidence about your retirement finances might be worth it.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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