6 Myths About Retiring in Texas
With its sun-filled skies, booming economy and exclusion of income tax, many would assume that the state of Texas is a great place for anyone to hang their Stetson.
What about retirees, though? According to the World Population Review, 12.3% of the Lone Star States population is over 65.
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In contrast to the picture-perfect lifestyle tourism companies paint of the state, we’re slipping off the rose-colored glasses to shine a light on the factors retirees need to consider before a Texas relocation. After looking at the data, here are the myths GOBankingRates debunked for you.
1. Cheap Cost of Living
Texans love to brag about the Dallas Cowboys, Matthew McConaughey and the low cost-of-living, but it’s far from being the cheapest state. In fact, Texas didn’t even make the top 10. The state ranked 19 out of 50 states for its average cost-of-living, according to the Missouri Economic Research and Information Center.
2. Low-Income Taxes
Texas residents don’t pay individual income tax, which makes the state attractive to seniors; however, the state makes up for it with its soaring property taxes, placing Texas in the top six highest states for property taxes, according to a 2023 report from the Tax Foundation.
3. High Sales Tax
Texas has a combined sales and use tax of 8.25% on everyday items such as household goods and services — insurance, cable TV and leases to name a few.
4. Year-Round Sunshine
Many retirees head south for warm weather destinations once they stop working. While they won’t need to shovel snow, the Texas summer heat and humidity can bring extremely high temperatures.
The Dallas-Fort Worth region alone reported 47 days of temperatures 100 degrees and higher in September 2023, according to the Dallas Morning News. As a result, 20 people lost their lives due to heat-related illnesses.
5. Hurricane Insurance
Texas is home to severe weather and natural disasters that result from hurricanes and tropical storms. Insurify states that homeowners should expect to pay a range of $1,800 to $2,400 or higher for hurricane insurance annually, with an average of $2,100 per year. Policyholders will also need to cover 2% of hurricane damage not paid by their insurance policy.
6. Limited Healthcare in Remote Locations
As seniors age, they fall vulnerable to health ailments and illnesses. While those in large cities such as Dallas or Austin might live near a hospital, others in rural areas might have to travel a significant distance to receive emergency medical care. This is due to the expansive geography of the state.
Takeaway on Retiring in Texas
Retirees with a diverse investment portfolio who have planned for retirement might find living in Texas to be an ideal destination; however, folks on a fixed income with limited savings might want to look at other options to spend their golden years.
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This article originally appeared on GOBankingRates.com: 6 Myths About Retiring in Texas
