Did you know that St. Louis, Missouri, is the birthplace of toasted ravioli? It’s also been consistently ranked as a top location for retirees looking to relocate. From its moderate cost of living to lively entertainment, St. Louis has much to offer anyone looking for a change of scenery in retirement.
As you continue finalizing your retirement plans, here are a few reasons you may want to keep St. Louis at the top of your list.
Benefit #1: Tax-Friendly
When considering moving to another state, it’s always a good idea to consider what sort of tax liability you can expect. Tax laws vary significantly from state to state, and an increased liability has the potential to impact your retirement savings.
The state of Missouri does not have estate or inheritance taxes. When you pass on, your estate will only be subject to federal estate tax.
Regarding Missouri taxes on Social Security benefits, you may only be required to pay them if your adjusted gross income (AGI) exceeds $100,000 on a joint return or $85,000 for single filers in 2023.2 Even if you exceed these income limits, you may only be required to pay taxes on a portion of your benefits.
Benefit #2: Low Cost of Living
St. Louis has proudly been identified as the fifth-best city in the Midwest for high wages and low cost of living.3
Much like other cities across the U.S., St. Louis has experienced an increase in housing prices, but the typical home value still sits below the national average at about $191,5004. In addition, property taxes are, on average, about $880 for every $100,000, which is just below the national average.2 Missouri also offers senior citizens a Missouri Property Tax Credit Claim to help offset real estate taxes. Eligible seniors can receive up to $750 if they rent or $1,100 if they own.5
Missouri has a moderate income tax range of 1.5% to 5.4%, and residents of St. Louis City are subject to an additional 1% earnings tax.6
Benefit #3: Access to Top-Tier Healthcare
As you consider your quality of life and expenses in retirement, healthcare costs and accessibility are likely two of your top priorities. Being in a larger city like St. Louis gives retirees access to hospital networks and highly regarded healthcare professionals.
St. Louis is home to several top medical facilities, including:
Whether you retire to St. Louis or call somewhere else “home,” it’s always good to research future healthcare needs. You may want to ask yourself important questions like:
- What type of specialists do I need access to regularly?
- How close are the nearest hospitals and ERs?
- Are these healthcare systems reputable?
- Is there a good standard of care?
Benefit #4: There’s Always Something to Do
From volunteering during the week to enjoying the music scene on the weekends, there’s almost always something going on in St. Louis.
Volunteering often plays an essential role in helping retirees establish a routine while giving them something purposeful and engaging to do regularly. From public gardens to food banks, there are plenty of volunteer opportunities to align with your interests.
Some popular volunteer organizations include:
- Trailnet
- St. Louis Aquarium at Union Station Foundation
- St. Patrick Center
- Gateway Arch Park Foundation
In terms of entertainment, St. Louis offers everything for everyone — The Saint Louis Art Museum, live music venues, food tours, and more. There is no lack of activities for active retirees looking to get out of the house and explore their new city!
Benefit #5: Good Weather
You get the best of both worlds in St. Louis — a moderate climate with all four seasons. In the winter, you’ll still need a winter jacket and snow boots since the temperature averages about 29 degrees in January. And at the height of summer, expect sunny skies with highs in the low 80s.7
Is St. Louis Your Retirement Destination?
St. Louis is quickly becoming a hot spot for retirees looking to relocate to the Midwest. We appreciate how centrally located the city is, with a major airport and short flights to just about anywhere in the country. Retirees can benefit from a lower cost of living than coastal cities without sacrificing the entertainment, food scene, and access to healthcare.
If you have any questions about the great city of St. Louis, or if you’re looking to connect with a financial professional in the area, don’t hesitate to give us a call anytime.
Sources
2Missouri Retirement Tax Friendliness
6 12 States That Tax Social Security Benefits
7 St. Louis, MO Weather History
Craig Toberman is the Founder of Toberman Wealth – a fee-only, fiduciary financial advisor based in St. Louis. He assists families and businesses with strategic financial planning and long-term wealth management. He has over a decade of experience in financial services and has crafted custom financial plans for hundreds of families and businesses.
Craig received a Bachelor of Science (B.S.) degree in Agricultural and Consumer Economics from the University of Illinois and a Master of Business Administration (M.B.A.) degree in Finance from Saint Louis University. He is a Certified Financial Planner (CFP), Chartered Financial Analyst (CFA) charterholder, and Certified Public Accountant (CPA).
Craig is a member of the National Association of Personal Financial Advisors (NAPFA), Fee-Only Network, and XY Planning Network.
Craig lives in the greater St. Louis area with his wife, Ally and son, Hank.