Retiring in Alabama: what you need to know

More than 18% of Alabama's population is over 65, making it one of the states with the highest retirement population.

Huntsville, Orange Beach, and Alexandria are among the best places to retire in Alabama.

Unbiased can match you with an expert financial advisor who can help you make the right decision regarding your retirement.

Affordable living: Alabama's cost of living is generally lower than the national average, which is a major draw for retirees looking to stretch their retirement dollars. Housing, healthcare, and food costs are typically lower than in many other states, making it an attractive destination for retirees on a fixed income.

Low taxes: Alabama has some of the lowest state income tax rates in the country, at between 2% and 5%. The state also does not tax income from pensions.

Warm climate: Alabama has a mild climate with warm summers and mild winters, making it an ideal destination for retirees who want to enjoy outdoor activities year-round. With access to beautiful beaches and numerous lakes and parks, retirees can enjoy a variety of outdoor activities such as fishing, boating, golfing, and hiking.

Southern hospitality: Alabama is known for its welcoming and friendly communities, where retirees can feel at home and build meaningful connections with neighbors and friends. The state also has a rich cultural heritage, with numerous museums, historic sites, and music festivals celebrating Alabama's history and culture.

Limited healthcare options: In some areas of Alabama, access to healthcare can be limited, which can be a concern for retirees who require regular medical attention.

Limited cultural offerings: While Alabama has a rich cultural heritage, some retirees may find that there are fewer cultural offerings compared to larger cities or states.

Natural disasters: Alabama is prone to natural disasters such as hurricanes and tornadoes, which could be a concern for retirees living in certain areas. However, the state has strong emergency management systems in place to help mitigate the effects of these events.

Social Security benefits: The earliest age at which you can begin receiving Social Security benefits is 62, but if you delay taking benefits, your monthly payments will increase. Full retirement age (FRA) is between 66 and 67, depending on your birth year. Delaying benefits until after FRA can result in even higher monthly payments.

Medicare eligibility: Medicare eligibility begins at age 65, regardless of retirement status. However, if you choose to retire before age 65, you will need to find alternative healthcare coverage until you become eligible for Medicare.

Age discrimination: It is illegal for employers to discriminate against employees or job applicants based on age.

Retirement savings: Regardless of retirement age, individuals need to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement. You could check out the average retirement savings in the US here.