If you're considering a location change when you retire, you are not alone. According to a May 2024 Southern Living online reader's survey of future retirees, one in three respondents plan to relocate in retirement. Choosing a destination with affordable and accessible health care is likely critical for your well-being and wallet.

Even with Medicare, health care continues to be expensive as you age. According to the 2024 Fidelity Retiree Health Care Cost Estimate, by the time you are 65 years old, you may need $165,000 (after taxes) in savings to pay for health care expenses. It’s no wonder that 75% of Southern Living's survey respondents are worried about affording rising health care costs as they age.

If a retirement relocation is soon in your future, consider the places below to call home. To narrow down our suggestions, we examined data from the Bureau of Labor Statistics, Census data, reports from the AARP 💙and Commoജnwealth Fund, and research done in partnership with Southern Living to create a roundup of suggestions in four regions of the United States. 

Understanding Health Care Costs in Retirement

The cost of health care will vary depending on your health. Still, everyoꦬne should consider a few factors: medical inflation, the aging population in the area, long-term care options, and any chronic conditions for you or other members of your household, especially everyone on Medicare. 

“Thankfully, most out-of-pocket costs on traditional Medicare with a Medigap policy are low,” said physician and certified f♌inancial planner , founder of Life Planning Partners in Jacksonville, Florida. “However, long-term care costs are not covered by Medicare, so make sure that the community has good resources to help the aging population. Also, stay away from Medicare Advantage𝓀, as you may have very limited service depending on where you live,” she said.

, a certified financial planner at SoF💛i, stressed the importance of considering any extra health care costs ahead of time. “Work with a financial planner to help project what these costs might be so that you can ensure you have an appropriate amount saved up before you pull the trigger on retiring,” she said.𓄧 

“These costs go beyond medicare costs; you also want to include supplement policies, out-of-pocket expenses, and 澳洲幸运5官方开奖结果体彩网:long-term care costs. Private insurance can be very expensive, especially if you are retiring before medicare age, so it is important to c🦩onsider this in your financial plan,” she added.

• Medical inflation: It's important to consider how much medical costs could inflate during retirement. For example, according to the latest figures from the Commonwealth Fund, health-care spending as a percentage of GDP rose to 17.8% in 2021 from 8.2% in 1980. According to the American Medical Association, “From 2012 to 2022, the average annual growth rate was 4.2% for physician services, 4.4% for hospital care, and 4.7% for prescription drugs.”
  
• Long-term care: Saving money for long-term care ranks high by advisors in order of important potential out-of-pocket expenses.
  
• Chronic conditions: Six in 10 adults in the U.S. suffer from one chronic disease, like diabetes, hypertension, and high cholesterol, and four in ten adults have two or more. If you have a chronic illness or condition, you will likely need more money earmarked for retirement. 

Common Medical Expenses In Retirement

Medicare typically covers hospital stays, doctor visits, and labs, but you will still have to pay out of pocket for dental care, vision care, premiums, and other expenses. In terms of general care, there are a feไw items retirees should plan on paying—wherever ꦑthey live. 

• Doctor visits/check-ups: Medicare should cover these appointments. 
• Prescription drugs: The co-pays for prescription drugs may vary state by state.
• Dental care: Medicare doesn’t cover regular visits to the dentist for cleanings, cavity fillings, extractions, or dentures. 
• Vision care: Medicare doesn’t cover routine eye exams, glasses, or contact lens purchases. 
• Emergency care: You may have to pay a co-pay for an emergency room visit, even with Medicare.

Criteria for Selecting a Retirement Destination�🧔� With Health Care in Mind

General criteria for selecting a retirement destination from a health-care perspective can vary for each individual, and it is key to do the legwork on access to doctors, urgent care centers, and hospitals. If you don’t, challenges can crop up down the line. “The problem is that you don’t know when you are going to develop ꦉa health problem,” said Dr. McClanahan. “Once you are diagnosed with a serious illness, it becomes very challenging to relocate to areas that have better health care access.”  

So, while settling down in a rural location may be temp♋ti✅ng, you should determine how close you are to the nearest medical facilities, doctors, and caregivers.

“I had a client who had wonderful health insurance and robust long-term care insurance,” shared Dr. McClanahan.“He lived in a rural area and planned to receive care at home if he became ill. Once this happened, 🍎he was not able to find any good home care providers, although he had great resources. He ended up in a very run-down🅘 facility because he was too ill to go anywhere else where family was close.” 

In addition to access to facilities and good-quality care, you should ensure access to long-term care specialists (in case you need ♛them) and learn about community-centered health programs, like walking or hiking clubs. 

“The ideal situation is to be in a health care system where the primary care doctꦚor can easily coordinate the care with specialists within the health-care system. You’ll also want to make sure the area in which🤡 you live has great hospitals, good care management programs for the elderly, and that there are plenty of good assisted living and skilled care facilities available,” said Dr. McClanahan. 

Health-care facilities: Access and proximity 🦩to hospitals൲ are important to gauge when considering a move.

Cost of health insurance: While Medicare Parts A and B deductions are the same in every state, if you use Medicare Advantage or Medicare Supplement Insurance, the costs could vary depending on a few factors, including where you live.

Quality of care: Check the reviews of local doꦡctors and medical facilities.

Access to specialists: If you need medical specialists to maintain your health, this should be on your ch💞ecklist. 

Long-term care options: Researching long-term care facilities, should you need them, is k💮ey, especially if you donꦏ’t want to move again. 

Community health programs: Consider areas with s♑enior centers and recreational activities for retirees, like group walks, hikes, swim classes, and other community-centered programs.  

🌊Top Retirement Destinations for Managing High Health-Care Costs in the U.S.

Region 1 (Northeast): New Hampshire

Despite the snowy winters, New Hampshire is a good choice for retirees. It has no sales or income tax, which will help keep costs down and access to recreational activities like cross-country skiing, hiking, and boating. The state also has a range of excellent hospitals, including the Dartmouth-Hitchcock Medical Center (which is the best-ranked in-state hospital), located in Lebanon, a mid-sized city that offers recreational opportunities and access to two major hospitals. According to the Commonwealth Fund, the state has ranked among the top three states for its access to medical care and affordability. 

Region 2 (South): Tennessee

Temperate weather, lakes, access to lakes, hiking trails, national parks, and a low cost of living (low property taxes and no state income tax) are just a few reasons why retirees could consider Tennessee. While health care in rural areas can be spotty, we put it on our list because, in cities like Chattanooga, you can find a range of hospitals and medical care systems.

Region 3 (Southwest): Arizona

If you're worried about having access to long-term care, AARP ranked Arizona in the top 25 states for its long-term care services and support for seniors, including 146 active adult communities.

Arizona also has low taxes, access to recreational opportunities, the Grand Canyon (for sightseeing), and a hot, dry climate, although it gets extremely warm in the summer months.  Scottsdale is a great alternative to Phoenix, with premier health care institutes, including the Mayo Clinic, and a large number of hospitals so that you can have choices. 

Region 4 (Midwest): Wisconsin

Wisconsin was ranked 15 nationally by AARP’s Long-Term Services and Supports (LTSS) Scorecard for outperforming other states in providing affordable access to supporting older adults due to its resources for the aging, long-term care facilities, and its range of award-winning medical facilities. While the winters can be long, Wisconsin is home to 15,000 lakes, hiking and walking trails, and access to other recreational activities. Madison, Wisconsin, ranked number one on AARP’s Livability Index for large-sized communities for retirees due to its medical facilities, access to recreational programs, walkability, and public transportation. 

The Bottom Line

Relocating in retirement calls for financial preparation, and a financial planner can help navigate the high cost of health care. “Health care is one of the costs that is growing most rapidly,” said Meade. "When I do financial planning for members, I include health care costs in retirement as a separate amount from their other expenses to estimate this as well as long-term care costs.”

Health-care services, access to hospitals, and community programs for seniors should also be high on your list when choosing a new location, as should affordaﷺbility. While some states, like California and Massachusetts, offer affordable health care, the cost of living may cancel out a𝄹ny savings. 

According to data from AARP and Commonwealth, Southern and Midwestern states may offer the best overall options for seniors, but don't rule out tax-friendly states like New Hampshire and Wyoming.