Retiring in Mississippi: a complete guide
With its affordable living and mild weather, Mississippi is a top retirement pick. Discover key pros and cons, age factors, and cost details.
Summary
Mississippi had a population of approximately 2.9 million people, with over 15% of the population over the age of 65.
Jackson, the capital of Mississippi, is listed as one of the best spots to choose if you plan on retiring in the state.
Unbiased can match you with a financial advisor who can help you plan and realize your dream retirement, wherever it may be.
Where are the best places to retire in Mississippi?
If Mississippi is your chosen retirement state, here are some of the best places to retire:
Is Mississippi a good place to retire?
Mississippi is a lesser-known but attractive retirement destination for many Americans seeking a laid-back lifestyle with access to outdoor activities, southern charm, and a mild climate.
With its beautiful beaches, forests, and historic towns, Mississippi offers a unique retirement experience that is gaining popularity among retirees every year.
According to data from the U.S. Census Bureau in 2020, Mississippi had a population of approximately 2.9 million people, with over 15% of the population being over the age of 65, making it one of the top states with a large retirement population.
What are the pros and cons of retiring in Mississippi?
When determining where you want to spend your retirement, it’s vital you weigh up the advantages and disadvantages of your chosen location. Here are some to get you started.
The pros of retiring in Mississippi:
Mild climate: Mississippi has a subtropical climate, with mild winters and warm summers. This makes it an attractive destination for retirees who want to avoid harsh weather conditions.
Southern charm: Mississippi is known for its southern hospitality, with friendly locals and a laid-back lifestyle. Retirees can enjoy living in a charming environment that offers a slower pace of life and a sense of community.
Outdoor activities: Mississippi is home to numerous state parks, forests, and beaches, providing ample opportunities for outdoor activities such as hiking, camping, fishing, and boating.
Affordable cost of living: Mississippi's cost of living is generally lower than the national average, which could be a draw for retirees on a fixed income. Housing and healthcare costs, in particular, are lower than in many other states.
The cons of retiring in Mississippi:
Limited cultural scene: Mississippi's cultural scene is more limited than that of some other states. While there are museums, galleries, and performing arts venues, they may not be as plentiful or diverse as in other areas.
Limited job opportunities: Mississippi's job market is smaller than that of some other states, which could be a concern for retirees who want to work part-time or continue their careers in retirement.
Natural disasters: Mississippi is prone to natural disasters such as hurricanes, tornadoes, and floods, which could be a concern for retirees living in certain areas. However, the state has strong emergency management systems in place to mitigate risks and respond to emergencies.
How much tax will I pay in Mississippi when I retire?
Mississippi exempts all forms of retirement income from tax, meaning income from Social Security, your IRA, your 401(k), or any pensions you may have are tax-exempt.
Mississippi also does not have an estate or inheritance tax, meaning you can pass on your assets to your loved ones without then incurring a large tax bill.
This makes Mississippi one of the most tax-friendly retirement states in the country.
While you won’t pay state income taxes, you will have to pay other taxes if you retire in Mississippi, including sales tax (7%) and property taxes; however, people over 65 are exempt from taxes on the first £75,000 of the value of their home.
What age can you retire in Mississippi?
In Mississippi, there is no legally mandated retirement age, allowing individuals the freedom to retire whenever they are financially prepared.
However, there are several age-related benefits and considerations for retirees in Mississippi:
Social Security benefits: You can start receiving Social Security benefits as early as age 62. However, delaying benefits increases your monthly payments. The full retirement age (FRA) ranges from 66 to 67, depending on your birth year. Delaying benefits beyond FRA can further boost your monthly payments.
Medicare eligibility: Medicare eligibility starts at age 65, regardless of whether you are retired. If you retire before 65, you will need alternative healthcare coverage until you qualify for Medicare.
Retirement savings: Regardless of when you plan to retire, it is crucial to start saving early. Financial experts often recommend saving at least 15% of your income for retirement.
What is the Mississippi cost of living?
Mississippi is home to one of the lowest costs of living in the US.
According to Forbes, which examined the cost of living for 2024 across all states in the US, Mississippi stood out with its low cost of living, with residents spending an average of just over $32,000 on essential expenses each year.
This is compared to Hawaii, which had the nicest cost at over $55,000.
Get expert advice when planning your retirement
Choosing where you plan to retire is a big life decision, so it’s best to get expert advice.
A financial advisor can look at all your options and how your savings stack up and help you make an informed decision about where the right location for your retirement is.
Frequently asked questions
Content writer
Kate has written for leading publications and blue chip companies over the last 20 years.