Should You Retire in Nevada? | The Motley Fool

Many retirees consider relocating for retirement — often to places with warmer climates, such as Florida and Arizona. Nevada is another state with a warm climate, and you might prefer it to many other states. Let’s look at some of its pros and cons.

On the plus side, its cost of living is very close to the national average, per the World Population Review. Its housing and transportation costs are respectively 11% and 17% above average, while healthcare costs are about 5% less costly. Healthcare in Nevada could be better, though: The folks at MedicareGuide.com have rated it the 37th-best state in the U.S. for elderly healthcare, factoring in cost, quality, and access.

The typical home price in Nevada was recently $457,395, about 26% higher than the national average. On a more positive note, the average annual cost of car insurance in Nevada was recently $3,250 — only about 8% above the national average. Other negatives include some extreme heat in the summer and the chance of floods, droughts, and wildfires.

Retirees care a lot about taxes, as their incomes are more limited, and Nevada is terrific on this count. There’s no income tax at all, so even Social Security benefits are not taxed, and neither are 401(k) and IRA withdrawals or pension income.

Nevada is home to lots of people aged 62 and above, and it offers a lot of natural beauty and opportunities for outdoor recreation — such as golfing, hiking, skiing, camping, and so on. Indoor entertainment includes plenty of museums, theaters, restaurants, and… casinos.

Spending time in a casino can be fun, and some attract major performing artists. Gambling can be fun, too, but if you’re prone to gamble too much or have a gambling addiction, Nevada may be best avoided.

If some of these Nevada characteristics sound good, take a closer look at the state, and perhaps spend a few summer months there to make sure it’s a good fit.