Examining The Benefits Of Retiring in North Carolina
Are you wondering whether or not North Carolina is a retirement-friendly state to live in? If yes, you have arrived in the right place. First, here’s the answer to your question.
Is North Carolina Retirement Friendly?
North Carolina is a retirement-friendly state because of its modest cost of living, tax breaks for seniors, attractive climate, access to quality health care, and abundant recreational opportunities. Furthermore, retirees love the state’s natural beauty, southern hospitality, and cultural attractions.
Next, with those highlights in mind, please let me explore the seven reasons living in North Carolina is retiree friendly.
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1. North Carolina Retirees Enjoy A Reasonable Cost Of Living
As shown in the table below, North Carolina is a good state to retire in because it offers residents a lower-than-average cost of living.
Cost of living index (100 equals the national average):
| Expense | % of US Average |
| Grocery | 99.0 |
| Housing | 92.1 |
| Utilities | 94.5 |
| Transportation | 93.5 |
| Health Care | 109.5 |
| Miscellaneous | 97.3 |
| Overall | 96.1 |
What to watch out for: Real estate values have appreciated rapidly in recent years exceeding the pace of gains in the overall U.S. housing market.
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2. Tax Breaks For Seniors Living In North Carolina
Retirees should be aware of essential information about North Carolina retirement taxes.
Tax-friendly breaks: First, your social security benefits will go further because the state does not tax social security income. Second, military service retirement pay is tax-free for those who qualify.
Next, the state does not have an estate tax or inheritance tax. Finally, North Carolina offers relief on property taxes for qualifying seniors.
What to watch out for: unlike other southern states like Tennessee, Florida, and Texas, North Carolina has a state income tax.
Thus, North Carolina taxes many sources of retirement income at the state’s flat income tax rate of 4.75% (in 2023), including:
- Pensions
- IRA and 401(k) withdrawals
- Income from investments
Fortunately, the state’s income tax rate is scheduled to decrease significantly in future years.
Finally, sales taxes average nearly 7% across the state.
3. Incredible Natural Beauty
North Carolina is a good place to retire because retirees can access exceptional natural scenic beauty. Some of the highlights include:
- Miles of ocean coastline
- Blue Ridge Mountains
- Blue Ridge Parkway
- Appalachian Mountains
- Outer Banks
- Dozens of sandy beaches
You can drive across the entire state in about six hours. So, consider that you can watch the sunrise over the Atlantic Ocean and hike in the mountains later that same day.
Moving along, here’s another one of the reasons for moving to North Carolina in retirement.
4. Enjoyable Weather
North Carolina is a good state to retire in because of the mild winters and warm summers without the intensity of heat or humidity experienced in other popular retirement destinations.
Have you heard of “halfbacks”? There is a reason some northerners first retire to Florida, then move halfway back for the milder summer climate.
Plus, no matter where you choose to settle down, you are at most a few hours away from the cooler temperature in the higher elevations.
To sum it up, North Carolina retirees enjoy summers on the beaches, winters in the mountains, abundant spring blooms, and stunning fall foliage.
What to watch out for: The state’s coastal regions are susceptible to hurricanes.
So, understand what you are signing up for when retiring near the Atlantic coast. Otherwise, you may regret moving to North Carolina.
5. Abundance Of Things To Do In North Carolina For Retirees
Combining the location’s scenic beauty and excellent year-round weather can only mean one thing. North Carolina is a good place to retire because of the abundant options for outdoor recreational activities, including:
- Golfing the world-class courses
- Boating the waterways
- Fishing the lakes and streams
- Hiking the mountain trails
- Sunbathing on the beaches
Furthermore, sports lovers can root for their favorite teams in the NFL, NBA, or NHL.
Next, the state offers plenty for retirees who enjoy art, culture, and history. Several examples include:
- Asheville Art Museum
- Biltmore Estate in Asheville
- Battleship Museum in Wilmington
- Carolina Shakespeare Festival in Greensboro
- Folk art and music of the Appalachians
- Museum of Art in Raleigh
- North Carolina Theatre in Raleigh
- Wright Brothers National Memorial
Finally, state residents 65 and older can take higher education classes tuition-free at the state’s community colleges.
6. Access To Quality Healthcare Is A Must For Retirees In North Carolina
Retiring in North Carolina means excellent access to health care. Yes, the services may cost a little more. But you get what you pay for.
The state is home to several excellent medical schools located at:
- Duke University
- East Carolina University
- UNC at Chapel Hill
- Wake Forest University
Furthermore, Duke University Medical Center and the UNC hospitals are highly respected healthcare centers.
What to watch out for: North Carolina retirees living in rural areas may have to travel long distances for care. So, choose your location wisely if access to high-quality health care is one of your priorities during retirement.
Speaking of where to live, let me highlight some of the state’s most popular places to retire.
7. Best Places To Retire In North Carolina
North Carolina is a good state to retire in because there is a city, town, or place for your new home to meet almost any retirement lifestyle you desire.
For your consideration, here is a sampling of some of the best places in North Carolina to retire.
Best Places To Retire In North Carolina Near The Mountains
- Asheville
- Boone
- Hendersonville
- Hickory
Best Places To Retire In North Carolina Near The Atlantic Coast
- New Bern
- Jacksonville
- Wilmington
Best Places To Retire In North Carolina Near The Renowned Research Triangle
- Raleigh
- Durham
- Chapel Hill
Best Places To Retire In North Carolina For City Amenities
- Charlotte
- Greensboro
- Winston-Salem
Or choose from the hundreds of quaint small towns, retirement communities, and rural spaces.
Okay. That concludes my discussion about the retirement-friendly nature of North Carolina.
So, please allow me to conclude with some parting thoughts. But before I do, enjoy this image and save it to Pinterest.
7 Reasons Why North Carolina Is Retirement Friendly And A Few Things To Watch Out For
North Carolina is retirement friendly because of these seven reasons:
- Reasonable cost of living
- Tax breaks for seniors
- Incredible natural beauty
- Enjoyable weather
- Abundance of things to do
- Access to quality healthcare
- Attractive retirement destinations
Of course, retiring in North Carolina will only be for some, not for all. Thus, I included a few things to watch out for, including:
- Risk of hurricanes
- Distance to health care services in rural areas
- Higher-income taxes
Good luck with your decision, no matter where you decide to retire.
Author Bio: Tom Scott founded the consulting and coaching firm Dividends Diversify, LLC. He leverages his expertise and decades of experience in goal setting, relocation assistance, and investing for long-term wealth to help clients reach their full potential.