The Pros and Cons of Retiring to Arkansas

Are you thinking about making Arkansas your retirement haven? It’s important to really dig into what this state offers and what to watch out for. When you do research, you’ll see the experts are divided on if it’s smart to retire in Arkansas. Make it easy on yourself with this list of pros and cons of spending your best years living in Arkansas.

Benefits of Retiring in Arkansas

Excellent Affordability

Arkansas shines when it comes to affordability. According to MoneyRates’ “Best States to Retire 2022” list, Arkansas is attractive for a low cost of living that ranks third nationally. When you’re on a nest egg, every dollar counts.

In the last quarter of 2023, Arkansas ranked 7th for its overall living costs. It particularly shined in its housing affordability. The budget item’s median cost ran 25% below the US average. Housing is one of the most expensive items in our daily budgets, so having a low-cost place to live matters as a retiree.

The state’s healthcare affordability and nursing care capacity are particularly noteworthy, taking the top and tenth spots, respectively. In that arena, the typical resident spent 12% less than average. MoneyWise also recognized Arkansas as the 4th most economical state for retirees in 2022.

Prime Outdoor Recreation

The “Natural State” lives up to its nickname. Locals have 52 state parks covering thousands of acres preserved as forests, wetlands, and recreational spaces. Inside them are activities like mountain biking, hiking, canoeing, fishing, and golf abound. And those are just the state parks! Add in how counties and cities run their own recreational facilities and nature preserves. The access to recreation is truly incredible.

Retirees can wander scenic hiking trails at their leisure in parks like Devil’s Den State Park, Petit Jean State Park, and the Ozark National Forest. Cycling enthusiasts have the Razorback Regional Greenway. They also have the Ouachita National Recreation Trail. Retirees who enjoy camping or RVing will find many campgrounds and RV parks. They offer amenities from basic tent sites to full hookups and cabins. If you’re an Audubon enthusiast, Arkansas’ diverse ecosystems provide habitat for many bird species and wildlife. 

Being landlocked doesn’t stop the water fun. Arkansas is a haven for anglers. Take your pick of fishing spots, from lakes to rivers and streams. Fish for bass, trout, catfish, and more in places like the White River, Lake Ouachita, and the Arkansas River. Those same waterways are excellent for leisurely paddle days or motorized boats.

For those passionate about hunting, Arkansas offers plenty of wild lands rich in game. It’s supported by a rich hunting tradition.

Best of all? Retirees over 250 sunny days a year to enjoy this outdoor bounty.

Acclaimed Arts Scene

Art and culture enthusiasts will find Arkansas surprisingly active and diverse. The state is home to notable institutions like the Crystal Bridges Museum of American Art in Bentonville. This world-renowned institution features American artworks spanning from colonial times to contemporary pieces. It’s one in a trifecta of well-regarded art museums, including the Arkansas Art Center and Walton Arts Center.

Do you love live performance art? The Arkansas Repertory Theatre is in Little Rock. TheatreSquared is in Fayetteville. Both are known for their high-quality performances. Additionally, the Walton Arts Center presents a broad spectrum of performing arts. Retirees who love a good show will still be able to see Broadway shows, dance performances, and concerts.

Music festivals and events celebrate Arkansas’ musical legacy. Check it out at the King Biscuit Blues Festival in Helena-West Helena or the Fayetteville Roots Festival.  Music fans also recommend the Eureka Springs Blues Weekend. Live music venues range from intimate clubs to outdoor amphitheaters in cities across Arkansas.

Finally, film aficionadoes will want to add the Hot Springs Documentary Film Festival to their calendar. The festival is an acclaimed annual event on the independent film circuit. 

Many Military Veteran Perks

Are you a former service member? Arkansas treats its veterans with respect and gratitude. This is shown through several benefits for you. They include exemption of military retirement pay from state taxes, exemptions from homestead and personal property taxes, and in-state tuition rates for veterans and their families. The state also has six VA medical centers and 16 outpatient clinics. 

The state government supports perks for veterans. Many businesses and organizations do too. Don’t be surprised by discounts and special offers for veterans and military personnel. It’s their way of expressing appreciation for your service.

Tax-Friendliness

Arkansas is lenient on retirees’ pockets. It does not tax Social Security benefits and has deductions on state income taxes. For property taxes, Arkansas provides a homestead credit for homeowners over 65. It takes a property tax that already ranked among the lowest in the US and makes it even more generous.

Prescription drugs and some medical equipment are exempt from sales taxes. One more perk: groceries have a lower sales tax rate, at 0.125%.

Potential Drawbacks of Retiring in Arkansas

Extreme Weather

While most days are sunny in Arkansas, there is a downside. The state is prone to extreme weather. The most common are tornadoes and ice storms. 

In the spring, warm air from the Gulf of Mexico collides with cool air from the north. This spawns severe thunderstorms packed with heavy rains, lightning, hail, high winds, and tornadoes. 

Be weather-aware if you move to Arkansas. Know that tornadoes generally move from the southwest to the northeast. Having a weather radio is a good idea in case of power outages or nighttime tornadoes. 

Ice storms and occasional blizzards do happen. On the upside, most of the snowfall and ice risk is in northern Arkansas. Still, it is present. Ice can concern retirees, particularly those with health issues or limited mobility. It makes the roads harder to drive and can cause days-long power outages. 

Limited Healthcare Access

While Arkansas ranks high for healthcare affordability, access to quality care is uneven across the state. WalletHub ranked Arkansas #44 in healthcare for 2023, and US News and World report placed it at no. 45. 

Around 41% of Arkansas’ population lives in rural areas, and it’s here that access to quality health care is a challenge. The state already has too few doctors, just 13 primary care physicians for every 10,000 residents. Start comparing urban to rural ratios, and the numbers change significantly. About a quarter of Arkansas counties lack access to primary care doctors. Around 24 Arkansas counties do not have a hospital within their borders.

As a retiree, your quality of healthcare and ability to get to it quickly depends on where you live in Arkansas. This may not matter if you’re looking at the highly populated Northwest Arkansas region, Little Rock, or around Hot Springs.

Amenity Access

Access to amenities is like healthcare–concentrated around urban centers. These amenities include arts, entertainment, and public transit. 

Because of this, WalletHub ranked Arkansas #49 for quality of life. In addition to access to cultural and recreational attractions, its evaluation looked at senior poverty rates and food insecurity.

Another downside to rural living is that a car is essential to get around as you age in place. This complicates daily life when your grocery store is a 20-minute drive, or the doctor’s office is over an hour one way. And what if you reach the point where you can no longer drive safely? 

High Poverty Rates

The sad truth is that as much as Arkansas’ economy has grown, improvement is not widespread. Job growth has yet to trickle down through the economy. Around 16% of residents lived under the poverty line in 2021. The system doesn’t have a lot of support for those who are down on their luck. 

Additionally, the state’s median income falls below the national average. This leads more residents to struggle to afford daily essentials.

Ready to Retire to Arkansas?

Arkansas has a lot going for it. It’s cheap and great for outdoor lovers. It has a great arts scene, perks for vets, and is pretty tax-friendly. But it’s not all sunshine. You’ve got to consider the not-so-great stuff like extreme weather and hit-or-miss healthcare access. It’s about making a choice that fits what you want and need. It’s your retirement, and it deserves to be as fantastic and comfy as can be.