New York City had the most significant loss of millennials in 2015, with more than 29,000 going elsewhere. Moreover, of all the millennials who have moved out, not a single one has come from the Northeast, according to 2015 migration patterns released this year by personal finance site SmartAsset. Of the three states in northeastern New Jersey, New York and Connecticut came in the top five.
If your vision of retirement in New York City is in a place like Midtown Manhattan, you might be disappointed. Below is a list of why you are moving here when you do, and why you should stay or retire in the New Town in retirement.
New York City has a lot to offer its visitors, regardless of age. If you’re planning to retire, consider moving to NYC as a senior. New York is a multicultural capital of the world where everyone can fit in. Nowadays, it is also one of the most exciting destinations to retreat,
If you can afford to move to New York on a higher budget, you will be able to experience and behave in this fantastic city and enjoy all it has to offer. If you have to drive your car to New York City, wait in line, and experience heavy traffic. Hamptons is a prime destination if you can afford it. Take cities like Deep Park and Glen Cove when you move to NY.
Nine years ago, over a million people have fled the three-state area, including New Jersey, Connecticut, and Long Island. According to Bloomberg, nearly 300 people leave the field every day. New York City, the second-largest city in the United States, is experiencing a significant exodus of people.
The state that lost the retirees, going in the opposite direction, according to data from the US Census Bureau. In the first three years of 2009-2011, older seniors left New York state at the highest rate of about 2,000 a year, compared with about 1,500 in 2012-2014. More than 1.5 million people between the ages of 65 and 79 left the country between 2012 and 2014. Moves from Florida to New York approximately doubled in that time to more than 11,000.
Many businesses are moving to warmer, less expensive places, meaning people thinking about leaving the North East can now find work. New York and Florida are the most populous immigration states, according to Census Bureau data. For example, Boston had the snowiest winter on record in 2015, and Boston has the second coldest winter in the country after New Orleans. Just ask a lifelong New Yorker who said he left for better weather and moved to central Florida about a dozen years ago.
A significant reason for the exodus is that many retirees cannot afford to live in New York, according to various organizations’ studies. A new study by the NJCPA found that 74 percent of respondents advised their clients to leave the state. The state is also among the worst states for retirees on tax policy. For more than a decade, it has had some of the nation’s highest death taxes.
Relocating to a state with a lower expense of living, including lower taxes, can lead to a pay rise, says David Siegel, a chartered accountant and financial planner in New York City. Authorities in high-tax states are slow to investigate former residents to make sure they move, and you could face additional taxes and penalties in your old state. You will need to document your move, such as enlisting the help of a financial adviser or local financial planning firm or joining local neighborhood groups. The step could be financially beneficial for retirees in states with modest taxes, which are not as hard hit by the SALT deduction cap.
The low cost of living, combined with sunshine, makes pensions in Florida, the Carolinas, and Arizona attractive to many young retirees in the snow belt, who expect a much lower tax burden than their parents. New Jersey and New York, state and local taxes on incomes over $100,000 a year are much higher than in the retirement states. They are also higher in Michigan and Texas, but less than half as high as in other high-tax states like California and Florida. North Carolina is the single state with a lower tax rate than the US capital gains tax.
According to a Stateline analysis of Census data, the number of older seniors who moved to these states increased significantly between 2009 and 2011. Many people who spend their retirement in Arizona or even California feel the boomerang effect when older people arrive at a more advanced age. More than half of retirees in Florida, North Carolina, and Arizona left between 2012 and 2014. They went to states that were lagging: New Jersey, New York, Texas, Illinois, Michigan, Pennsylvania, Ohio, Virginia, Wisconsin, Colorado, Connecticut, Maryland, Massachusetts, Minnesota, Rhode Island, Vermont, Washington, Oregon, Maine, Alaska, Hawaii, Nevada, Arizona, and New Mexico. Michigan and Michigan – the two losing states – had the largest share of retirees who left when they did, losing more than a third of their retirees. [Sources: 6]