Yahoo Finance This Sleepy Hamlet In North Carolina Holds The #1 Secret To Stretching Retirement Funds
Choosing where to settle down in your golden years is a significant decision that a jaw-dropping 4.1 million Americans will make in the coming years. The USA is certainly not lacking when it comes to desirable retirement locations but a sleepy hamlet in North Carolina presents itself as an ideal location for retirees who are not interested in hot summers at the beach and are looking to stretch their retirement funds.
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According to a report from the Retirement Income Institute at the Alliance for Lifetime Income, more than 11,200 Americans will turn 65 every day between 2024 and 2027. Affectionately nicknamed the ‘Silver Tsunami,' many retired and soon-to-be-retired Americans will seek a place to live during their golden years.
Florida has long been the number-one retirement destination for many retirees, thanks to its warm weather. Gov. Ron DeSantis states, "Florida's strong economy and low taxes create opportunities for families, which is why Florida continues to lead the nation in net in-migration."
However, the Sunshine State has some competition in the form of a small, sleepy hamlet in North Carolina's wine country.
The U.S. News & World Report has released its findings on the best cities in North Carolina to retire in, and Winston-Salem has come out on top. Located in the stunning Yadkin Valley, this slow-paced hamlet is not just a great choice for retired Americans looking to stretch their retirement savings, but also a place that offers a sense of security and comfort. U.S. News & World Report describes Winston-Salem as ‘a region on an upward trajectory that still maintains its Southern roots.'
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Considering Winston-Salem's statistics, it's clear why retirees are trading their big-city lives for a slower pace.
The city has a population of 252,907, with 15% of the population in their retirement age. The city offers retirees a lower cost of living, lower taxes, and a vibrant cultural scene. The state has a flat income tax rate of 4.75%, and property tax rates are 0.70%, which is lower than the 0.99% national average. While North Carolina imposes state income tax on 401(k) distributions and pensions, which may deter some retirees, the state does not tax Social Security benefits. The lower cost of living and affordable housing certainly compensate for the state income tax.
Data released by the U.S. News and World Report showed that the median monthly mortgage cost is a desirable $841, and the median monthly rent is $834. This is much lower than popular retiree cities in Florida like Daytona Beach, where the median monthly rent is $1,274. While the median household income is $64,493, which is lower than the national average, the lower cost of living makes up for this and helps retirees save their retirement funds. A Missouri Economic Research and Information Center report found North Carolina ranks 22nd nationally in cost of living.
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Still not convinced?
The Tax Foundation reveals that in North Carolina, $100 equates to $109.53 in spending power. This means your money goes further than it would in other states, which is why this small town is a great retirement haven.
In addition to affordable living and lower taxes, this North Carolina city is the perfect city for wine lovers, as it is home to plenty of scenic vineyards and a rich art scene. Kim Myers, the proud owner of Laurel Gray Vineyards and Yadkin Valley Wine Company, expresses her love for the city: "The lifestyle in the Yadkin Valley is still rural and slow-paced but studded with small towns and beautiful vineyards."
Outdoor lovers will enjoy the scenic hiking trails and state parks while getting to know the local community at one of the many cultural events hosted in this North Carolina hamlet. If a sleepy, slow-paced lifestyle does not appeal to you, North Carolina has some great retirement-friendly cities to consider, like Charlotte and Raleigh.
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