Retiring in Pennsylvania

Is Pennsylvania a retirement hub?

Pennsylvania is a large, populous state with a rich history and a diverse range of retirement options. 

According to the U.S. Census Bureau, in 2024, Pennsylvania had a population of approximately 13 million people, with 20% of the population aged 65 or older, making it one of the top states with a large retirement population. 

Pennsylvania is and does comprise a good cross-section of the US as a whole. It boasts huge cities like Philadelphia and Pittsburgh, numerous mid-sized cities such as Harrisburg and Scranton, and a multitude of small towns and communities. 

It’s also geographically diverse, bordering the Great Lakes on one side, the Appalachians, and almost reaching the Atlantic Ocean to the east. 

At what age can you retire in Pennsylvania?

Pennsylvania doesn’t have a set retirement age, but in terms of federal guidelines, retirees should know the following:

• 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. 

The advantages of retiring in Pennsylvania

Here are some advantages to retiring in Pennsylvania:

• Affordability: Pennsylvania has a lower cost of living compared to many other states on the East Coast. This can be especially attractive for retirees on a fixed income. 

• Healthcare: Pennsylvania has a high-quality healthcare system, with many highly ranked hospitals and medical centers.  

• Rich history and culture: Pennsylvania is home to many historical sites and museums, including Independence Hall, Gettysburg Battlefield, and the Liberty Bell. Throughout the state, there are also many theaters, art galleries, and music venues. 

• Outdoor activities: Pennsylvania is known for its beautiful natural landscapes, including the Pocono Mountains and the Allegheny National Forest. It offers many opportunities for outdoor activities such as hiking, fishing, and skiing. 

What are the downsides to retiring to Pennsylvania?

Pennsylvania isn’t perfect. 

Here are some potential downsides to retiring in Pennsylvania:

• Weather: Pennsylvania has a humid continental climate, which means that it can experience hot summers and cold winters. This may not be ideal for retirees who prefer milder weather conditions. 

• Taxes: Pennsylvania has a state income tax of 3.07% and a local income tax in some areas, which could be a concern for retirees on a fixed income. 

• Crime: Like any location, Pennsylvania has some areas with higher crime rates than others. Retirees may want to research their potential neighborhoods before making a decision. 

Best places to retire in Pennsylvania

Here are some potential towns and cities that may be attractive to retirees in Pennsylvania:

• Lancaster: Lancaster is known for its rich history, vibrant arts scene, and charming downtown area. It's also home to a large Amish community, providing a unique cultural experience for retirees. The cost of living in Lancaster is lower than many other areas in the state, making it an affordable retirement destination. 

• Pittsburgh: Pittsburgh offers a mix of urban amenities and outdoor recreation opportunities. The city is home to numerous parks and trails, and it's also a hub for arts and culture. Pittsburgh has a lower cost of living than many other major cities in the U.S., making it an attractive option for retirees. 

• Philadelphia: Philadelphia is a historic city with a rich cultural scene, including world-class museums, theaters, and music venues. Retirees can enjoy strolling through the city's charming neighborhoods and taking in the historic architecture. While the cost of living in Philadelphia is higher than in many other areas in the state, the city offers a unique retirement experience. 

• Doylestown: Doylestown is a small town located in Bucks County, known for its picturesque streets and quaint shops. It's also home to several parks and hiking trails, making it a great destination for outdoor enthusiasts. The cost of living in Doylestown is higher than in many other areas in the state, but it offers a peaceful and relaxing retirement experience. 

• State College: State College is a college town known for its lively atmosphere and numerous cultural events. It's surrounded by beautiful natural areas, including state parks and hiking trails. The cost of living in State College is lower than in many other college towns in the U.S., making it an affordable option for retirees. 

Talk to a professional about retiring in Pennsylvania

Pennsylvania offers a range of benefits for retirees, including high-quality healthcare and a rich history. Retirees can enjoy the outdoors and a variety of recreational activities, too, but should be prepared for a higher cost of living and some tough weather.

It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Pennsylvania, 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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