The Pros and Cons of Retiring to Pennsylvania

Are you in the process of deciding where to retire? Have you been considering Pennsylvania but want to know more before making a decision? Retiring to Pennsylvania can be an exciting and rewarding decision. Lancaster, for example, was recently ranked as the second-best city to retire.

Here, we’ll look at some of the pros and cons associated with relocating (or staying) in this beautiful Northeast state during your retirement years so that you can make an informed decision. Whether you want places to indulge in your interests or are looking for affordable living options and great healthcare facilities, Pennsylvania might have what you’re looking for. Let’s explore together!

Advantages of Retiring in Pennsylvania

With lower living costs, excellent healthcare, friendly people, and lots of activities, you’re sure to find somewhere in Pennsylvania that fits your needs and desires. The perks of spending your golden years here include the following:

Low cost of living

Pennsylvania’s low cost of living is appealing when you’re on a fixed income, especially compared to its surrounding states. According to the 2022 MERIC Cost of Living Index, Pennsylvania is in 27th position, meaning it’s just slightly more expensive than Ohio but less expensive than next-door New York and New Jersey.

The total personal expenditure on essentials in Pennsylvania was $49,040 on average in 2021. The per capita average yearly cost for housing was $7,886, $8,641 for healthcare, and $3,491 for groceries. A person could expect to spend between $872-$1592 on housing each month living in Pennsylvania.

The average home value in the Commonwealth was $239,958 as of February 2023. In contrast, the National Association of Realtors® stated that the median sale price of a pre-owned home in the United States was $359,000 in the previous month.

Tax-exempt pensions and retirement plans

Pennsylvania has some of the most tax-friendly retirement policies in the country. It does not impose income taxes on Social Security benefits or pensions, including public and private pensions, once you are 60 and older.

And, in more good news, those of retirement age are not state-taxed on income from 401ks or IRAs. And, if you do choose to work, the individual income tax is 3.07%.

Healthcare

Healthcare matters for retirees, and Pennsylvania’s options certainly don’t disappoint! The personal finance website WalletHub recently released its findings for the best places in the US to receive healthcare. Pennsylvania came in at number 12, with top ten rankings on physicians per capita, percentage of adults getting vaccinated, and number of insured adults. In comparison to neighboring states, Pennsylvania stood out, ranking higher than New Jersey (14th), Delaware (19th), New York (21st), Ohio (32nd), and West Virginia (44th).

Among the US News & World Report reviewed and ranked hospitals, UPMC Shadyside in Pittsburgh and Penn Presbyterian in Philadelphia were considered the state’s top hospitals. Other notable hospitals include Lehigh Valley Hospital in Allentown, Milton S. Hershey Medical Center, and UPMC Pinnacle in Harrisburg.

Diverse Arts and Culture

Exploring Pennsylvania’s art and cultural attractions is an exciting experience; as a retiree, you’ll have ample time to check them out at your leisure.

One of the top places to visit is Philadelphia, home to the world-renowned Rodin sculpture “The Thinker.” You can also take a scenic stroll through the city’s dozens of public gardens. And, while in Philadelphia, step back in time at Independence Hall and see the iconic Liberty Bell.

Another great spot for art and culture is Pittsburgh, home to the world-famous Carnegie Museums of Art and Natural History and the Andy Warhol Museum. You can also check out the Pittsburgh Zoo and PPG Aquarium or ride on the Duquesne Incline for a beautiful view of the city.

Pennsylvania also offers a host of exciting festivals, from the Philadelphia International Flower Show to the Kutztown Folk Festival and more. Retirees have many events, performing arts venues, music festivals, and other entertainment options to enhance their days.

The Great Outdoors

From forests to farmland, Pennsylvania has something for everyone looking to spend more time in nature during retirement. Did you know that there is an entire region called the Pennsylvania Wilds because of its ample forested lands and parks? Plus, you have the rolling Poconos and Alleghenies, Lehigh Valley, and Appalachians.

Find multiple options for outdoor activities in the state. Hiking is available on miles of trails, including parts of the Appalachian Trail. If you prefer horseback riding, there are two million acres of trails to explore. For water activities, the 85,000 miles of rivers and streams are renowned for kayaking, boating, and fishing. Additionally, the state has a shoreline on the turquoise waters of Lake Erie.

The area around Lancaster County is home to some of the best golf courses in the country. The scenic countryside features rolling hills, valleys, and rivers, making it the perfect spot for a round of golf.

Whether you’re into hiking, biking, golfing, fishing, or boating, Pennsylvania has plenty to offer for outdoor fun in your retirement.

Top Places to Retire

The top two best places to retire in the nation, according to the US News and World Report, were both in Pennsylvania for 2023! Other three towns made the list’s top ten, for a total of five places ideal for retirement.

Lancaster took the top spot and has been in the top five for a number of years. This small city, set in the rolling hills of Pennsylvania’s Dutch Country, is a kaleidoscope of people, culture, and things to do. It earned its top markets for excellent access to quality health care and an affordable housing market. It still feels quaint, with downtown square arts and music festivals every month, tractor pulls and hay rides in the surrounding farms, and a charming shopping district.

Next up was Harrisburg, the state capital, and on the border of Amish Country. From here, it is easy to enjoy the great outdoors. Runners and bikers can appreciate the scenery of the Susquehanna River by using the trails at Riverfront Park, where many of the metro area’s festivals and events take place. Additionally, residents can hike the renowned Appalachian Trail or participate in camping and mountain biking at the several state parks and forests nearby.

York, a historic city with a flourishing arts community, ranked no. 5 on the list. It’s a small town with classic accouterments like a town fair, farmer’s markets, and a minor league baseball team. Nearby attractions include the Gettysburg Historical Monument and Hersheypark.

Spot no. 9 went to Allentown, a bustling city in the Lehigh Valley and the state’s third-largest city. This area has several outdoor attractions, including Hawk Mountain and Lehigh Gorge State Park. Its annual Musikfest is one of the largest music festivals in the country. Allentown has a thriving arts community, including a pedestrian-only ArtsWalk connecting the local art museum to the Baum School of Art.

And rounding out the top ten was Reading. Another historic small town, Reading, has quaint attractions like the Reading Symphony Orchestra and the unique 100-year-old Pagoda.

Cons to Retiring in Pennsylvania

So Pennsylvania has many perks, from a wide selection of recreation amenities, low living costs, and healthcare access. Be aware, though, that living here does have its drawbacks.

Harsh winters

Pennsylvanians are no strangers to cold and snowy winters. Many areas of the state experience strong winds and heavy precipitation during this season, making outdoor activities difficult. So if you’re tired of digging out after a big winter storm or find the chill is getting to you, you may not like retiring in PA.

High property taxes

The state’s property taxes are among the highest in the country. According to WalletHub, Pennsylvania has an average effective property tax rate of 1.5%, slightly higher than the national average of 1.4%.

To put it in perspective, 1.5% on a $300,000 home is $4,500 a year in property taxes.

There is some good news on the property tax front, as retirees with an annual household income of less than $35,000 can qualify for a property tax rebate. It doesn’t remove the requirement to pay property taxes but can alleviate some of the burden.

City Traffic

Pennsylvania’s cities are dense and not really designed for modern transportation. Still, their populations are growing, and with that comes more traffic. Pittsburgh and Philadelphia can suffer from gridlock during rush hour and on weekends. This can be especially bothersome for those living in the city or near highways and those who take frequent trips to these cities.

Retiring to Pennsylvania

Whether you love history, outdoor activities, or simply like living in a cozy atmosphere with friendly people, Pennsylvania offers many advantages to retirees. Homeowners also enjoy low taxes and attractive housing options — making it an excellent location for those looking for their ideal retirement spot! Take some time to explore the options available or speak with someone already living there for advice; that way, you’ll get an idea of what might work best for you.