North Carolina Retirement Concerns
Climate, cost of living, and amenities generally affect an individual’s retirement destination choice. North Carolina’s convenient location between major cities like Atlanta and Washington, D.C. make it attractive to seniors who might want to move but stay close to family in metropolitan areas. Financially, North Carolina became even more attractive for retirement in 2012, when the state’s estate tax was repealed. North Carolina state income tax dropped to 5.8% for the 2014 tax year.
US News & World Report named Asheville one of the Top 10 Best Places to Retire in 2013. (TopRetirements.com granted the same title, and the city was featured in Where to Retire magazine that same year. AARP named Asheville one of the “10 Great Sunny Places to Retire” in 2012.) Movoto ranked 3 Triangle-area towns in the Top 5 Places to Retire in North Carolina: Morrisville, Apex, and Holly Springs.
However, new research shows that one-third of working Americans will have insufficient retirement funds. TIME cited a report that forecasts just over half of couples aged 55-64 will rely exclusively on Social Security benefits.
How can individuals better prepare for retirement in North Carolina?
Catch-up. IRAs and 401(k)s offer catch-up savings limits. Read about the new retirement plan limits for 2015.
Relocate early. Instead of waiting for retirement, it might benefit an individual, couple, or family to relocate sooner. Moving from a state with higher income tax could translate into savings over time.
New employer. Depending on an individual’s career, a new position might include an employer-sponsored retirement plan. Employer-matched contributions can help grow retirement savings.
Planning for retirement also involves protecting assets. Discuss ways to preserve retirement assets for a spouse or children during regular reviews with an asset protection attorney or financial planner. Planning in advance can help ensure a loved one has access to retirement assets after the account owner passes away. Proper planning can help shield assets from creditors, minimize tax upon transfer, and other benefits.
One-third of working Americans will have insufficient retirement funds. TIME cited a report that forecasts just over half of couples aged 55-64 will rely exclusively on Social Security benefits.