What to know about retiring in Nebraska

Is Nebraska a good place to retire?

Nebraska, straddling the West and Midwestern regions of the United States, is a potential retirement destination for many Americans seeking a peaceful and affordable environment with access to a variety of outdoor activities and friendly communities. 

With its vast prairies, rolling hills, and welcoming small towns, Nebraska offers a unique environment, and some peace and quiet.

According to data from the U.S. Census Bureau in 2024, Nebraska had a population of approximately 2 million people, and more than 17% of them were over the age of 65. 

Speaking with an expert financial advisor can make the transition into retirement run smoothly. 

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Retiring in Nebraska: Pros and cons

Let’s quickly run down some of the pros and cons to retiring in Nebraska.

The pros

Pros of retiring in Nebraska include affordability and access to the outdoors.

• Affordable living: Nebraska is known for its low cost of living compared to many other states, which could be a significant advantage for retirees on a fixed income. Housing, healthcare, and daily expenses are all generally more affordable in Nebraska. 

• Friendly communities: Nebraska is renowned for its friendly and welcoming communities, with many retirees finding comfort in the small-town atmosphere and neighborly feel of the state. 

• Outdoor activities: Nebraska has a rich natural landscape with plenty of opportunities for outdoor activities such as hiking, biking, fishing, and camping. The state is also home to several national parks, including Chimney Rock National Historic Site, Agate Fossil Beds National Monument, and Scotts Bluff National Monument. 

• Unique culture: Nebraska offers a unique blend of Western and Midwestern culture. It also has numerous museums, galleries, and performing arts venues. The state hosts several festivals and events throughout the year, including the Nebraska State Fair, the Omaha Summer Arts Festival, and the Great American Comedy Festival. 

The cons

Some of the cons to retiring in Nebraska concern the weather and the state’s rural disposition.

• Harsh winters: Nebraska experiences long, cold winters with heavy snowfall, which could be a concern for retirees who prefer milder weather conditions. 
• Limited public transportation: Nebraska is largely a rural state, and public transportation options are limited, making it challenging for retirees who don't drive or prefer to use public transportation. 
• Limited healthcare options: While healthcare is more affordable in Nebraska compared to other states, the availability of healthcare options, particularly in rural areas, could be a concern for retirees who require specialized medical attention. 

What is the retirement age in Nebraska?

There’s no retirement age in Nebraska. Individuals can retire whenever they’re financially able to. That said, here are some other things to consider:

• 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, it is important for individuals 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.

Is Nebraska tax-friendly for retirees?

Retirement income in Nebraska is taxed as regular income, including Social Security payments. 

The only deduction Nebraska offers on retirement income applies to military retirement income.  

Adding Nebraska’s relatively high property and inheritance taxes into the equation, some retirees may find that taxes in Nebraska are a tad high for their liking.

Where should you retire in Nebraska?

If Nebraska is your chosen retirement state, here are some of the best places to retire in: 

• Lincoln: As the capital city of Nebraska, Lincoln offers retirees access to cultural events, museums, and restaurants. It is also home to the University of Nebraska, which offers educational and volunteer opportunities for retirees. Housing costs in Lincoln are lower than in many other cities in the United States. 

• Omaha: With a metro population of around 1 million, Omaha offers retirees access to a variety of entertainment options, including an arts scene, plenty of restaurants, and sporting events. Housing costs are reasonable, and the city offers a variety of housing options, including apartments, condos, and single-family homes. 

• Grand Island: Grand Island is a small city of around 50,000 people located in the central part of Nebraska. It offers retirees access to numerous parks, trails, and outdoor activities, as well as affordable housing options. 

• Kearney: Kearney is a small city of around 35,000 people located in the central part of Nebraska. It is home to the University of Nebraska at Kearney, which offers educational and volunteer opportunities for retirees. 
• Scottsbluff: Scottsbluff is a small city of around 15,000 people located in the western part of Nebraska. It offers retirees access to numerous parks, trails, and affordable housing. The city is also home to Western Nebraska Community College.

The bottom line

Nebraska offers retirees an affordable lifestyle with some peace and quiet, as much of the state is rural. While harsh winters, limited public transportation, and healthcare options may be a concern for some, many retirees find Nebraska to be an ideal place to retire and enjoy their golden years.

It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Nebraska, including property taxes, insurance, and living expenses, in order to make an informed decision about whether the state is the right choice for your retirement. 

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