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Friday, March 10, 2023

The Pros and Cons of Retiring to Louisiana

Louisiana, US

The Pros and Cons of Retiring to Louisiana

Are you considering relocating to Louisiana for your retirement years? Many know the state for its unique heritage, delicious cuisine, and diverse natural landscapes. Louisiana is an excellent state with much to offer retirees, from its breathtaking beaches on the Gulf of Mexico to the vivacious Cajun culture of cities like New Orleans and Baton Rouge.

But before signing the dotted line and making a move, you need to be aware of the ups and downs of retiring here. From weather to taxes, we will discuss all aspects of moving to Louisiana that could impact your retirement so you can decide where to spend your golden years!

Pros:

Save big bucks in the Big Easy

Louisiana has a relatively low cost of living compared to other states in the US. Housing, healthcare, and groceries are affordable, making it a great option for retirees on a fixed income. Just check out these cost of living index numbers from across the state:

Louisiana cost of living comparison chart

All figures are from Sperling’s Best Places Index, which places the national average at 100.

MIT’s Living Wage Calculator estimates a single adult with no dependents would need an annual income of $28,434 after taxes to cover their housing, medical, and transportation costs. A single person spent annually about $3,926 on food, $8,299 on housing, and $5,477 on transportation.

Incredibly Tax-Friendly

taxation in Louisiana

When every dollar counts, you’ve got to be more aware of your tax burden. The good news is Louisiana sits in the middle of the state rankings for overall tax burden. However, in even better news for retirees, the state has several tax breaks and exemptions that lower this burden. You’ll pay even less thanks to a retirement income exclusion, a property tax freeze, and a homestead exemption. These measures help retirees stretch their retirement income further.

Even though Louisiana does have an individual income tax, Social Security benefits, and income from federal, state, and local government pensions, military retirement plans, and railroad retirement benefits are exempt. The state income tax rate varies from 1.85% to 4.25% based on overall income.

For property taxes, anyone 65 and older with an income less than $100,000 can freeze the assessed value of their primary residence. This helps retirees save money on taxes as they age in place. It’s incredibly generous, given how home prices are appreciating.

And, for your beneficiaries, there is no inheritance or estate tax.

Savor mild winters

Are you tired of digging out after a winter blizzard? Good news here! Louisiana has a mild climate throughout the year, with warm temperatures that set up mild winters. This makes it an ideal place for retirees who want to escape the harsh winter months.

April, May, and October are among the most pleasant in the state as they have lower humidity and fewer days of rain.

A culture found only in Louisiana

wedding with jazz band

Louisiana is famous for its blended Creole culture, which includes jazz music, Mardi Gras celebrations, Cajun cuisine, and historical landmarks. Exploring the state’s diverse cultural and recreational menu will keep you busy!

For instance, Louisiana is known as a Sportsman’s Paradise because of its excellent access to fishing and hunting grounds. The wetlands are called the “Louisiana outback.” Their remoteness makes for prime bird-watching grounds or casting for the “big one” if you’re fishing for bass or perch.

New Orleans and its Cajun culture attract people from around the world to experience the Mardi Gras festival, jazz music, and cuisine. When you live here, there are dozens of blues and jazz clubs and delicious, long-established dining institutions easily accessible whenever you want. Explore the French Quarter and the historic homes at your leisure. Besides the Mardi Gras parades and events, the city has over 130 festivals a year. The unique language and music can be experienced across the southern coast, from Lafayette to Mobile, AL.

But it’s not just the Big Easy that is bursting with arts and culture. Baton Rouge has its own flavor, fewer tourists, and an avid LSU Tigers fan base. Tour the USS Kidd downtown or the majestic old and new Statehouses.

The northern and western part of the state mixes culture with Texas, so you’ll find places where Latin meets Creole. These rural communities were settled by immigrants from various cultures who put down roots and worked the farmlands. Hunting and herding are more prevalent than fishing and seafood. And you’re more apt to hear gospel, country, and bluegrass in their music venues.

Know your neighbors

Locals have a strong sense of neighborly ties and community that many find appealing. Especially in small towns, residents have learned to rely on each other to get through tough times and celebrate the good. This resilience is seen in the “Cajun Navy” and the common church “homecoming” festivals.

Don’t be surprised to see people waving as you drive by or strangers saying “hello” when you walk down the street.

Cons:

Humidity drenches the air

window with dew dripping due to humidity

Those seemingly mild winters will give way to roasting summer months. If the heat wasn’t enough, Louisiana has high humidity levels throughout the year, which during the summer months feels even worse. This can make it uncomfortable for retirees not accustomed to the heat and humidity. The further south you go, the stickier the air will feel.

Beware natural disasters

Every state is at risk of natural disasters like earthquakes or tornadoes. Louisiana is no exception, but the state seems to have experienced more than its fair share of natural disasters. Who can forget the images of Hurricane Katrina over a decade ago? How about category 4 Hurricane Ida, more recently in 2021?

The threat of flooding from hurricanes or heavy rains is very real. So are the severe thunderstorms and tornadoes. Retirees need to be prepared for these events and have an emergency plan in place.

hurricane in Louisiana

And it’s not just tropical storms to look out for. Remember, the Mississippi River runs through Baton Rouge. Annual flooding is a risk in low-lying Louisiana, especially as you head farther south toward the coast.

Healthcare comes up short

Due to a shortage of healthcare providers and limited access to specialized medical care, Louisiana is one of the worst states for healthcare. WalletHub ranked it no. 47 in this category, and it’s not alone in giving Louisiana bottom-tier scores.

healthcare system in Louisiana

Living near New Orleans or Baton Rouge is your best bet to find medical providers in the specialties you may need. Otherwise, retirees with complex medical needs may need to travel outside the state for treatment.

The state also ranks poorly because it has high health insurance premiums and overall medical care costs. It has high Medicaid enrollment and a rising number of uninsured persons.

High Crime Rate

flag of Louisiana with handcuffs

Ranked no. 48 for crime by BankRate, Louisiana has a higher crime rate than the national average, particularly in urban areas. Both violent crimes and property crimes are higher than the national rate. Retirees need to be aware of their surroundings and take precautions to stay safe.

Getting around isn’t easy

While public transportation is in the major metros, it doesn’t have the best reputation for reliability. The best way to get around most of the state is with your car. This can be a real challenge if you have limited mobility or can’t drive anymore.

Utility Costs

Much of your expenditures will be much lower in Louisiana, but utility costs may not be one of them. These costs vary across the state, but your electricity and utilities are more expensive than surrounding states. Resident energy costs averaged $410 a month, with electricity higher than in states like California and New York at an average of $140.

Retiring to Louisiana

happy retired couple

In summary, retiring to Louisiana has both pros and cons. On the bright side, retirees have an affordable cost of living, low tax burden, mild winters, and rich culture. But these come with drenchingly warm summers, a real risk of natural disasters, limited healthcare, and a high crime rate. Weigh these factors as you decide if Louisiana is your right retirement destination.

Just where is the best community to buy if you do want to retire to Louisiana? Again, a lot depends on what you want from your retirement. However, to encourage more retirees to consider Louisiana, the state has a Certified Retirement Community program. Cities apply for and receive the designation based on criteria like affordability, retirement amenities, and healthcare services. The program includes, but is not limited to, the cities of:

· Shreveport-Bossier

· Natchitoches

· Lake Charles

· Thibodaux

· Houma Parish

· Lafayette

· West Monroe

· St. Mary Parish

These, and the other communities on the list, are excellent places to start your retirement community search. To narrow down the specific neighborhoods, let a local real estate agent be your resource for finding where to go here, and anywhere else you’d like to live in Louisiana. Learn more about moving to Louisiana.

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Preston Guyton

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