Retiring in Tennessee: key highlights and considerations
Discover if Tennessee is the ideal place for your retirement. You can also match with a financial advisor but answering a few questions below.
Summary
Tennessee is home to over 55 active retirement communities, most of which are near bustling towns and cities.
Franklin, Chattanooga, and Knoxville often rank among the best places to live in Tennessee for retirees.
Tennessee has a low cost of living and natural beauty. However, the state is also known for its adverse weather and natural disasters.
A financial advisor can help you plan your dream retirement and ensure you have enough money to reach your goals.
What are the best places to retire in Tennessee?
Tennessee is home to over 55 active retirement communities, most of which are near towns and cities that offer a fulfilling lifestyle.
Some of the best places to retire in Tennessee include:
Is Tennessee a good state to retire in?
According to data from the U.S. Census Bureau, in 2022, Tennessee had a population of approximately 7 million people, with over 17% of the population being over the age of 65, making it one of the top states with a large retirement population.
Tennessee offers potential retirees many benefits, including great healthcare and affordability, though you should also consider environmental downsides.
The Volunteer State certainly has appeal, but whether the pros would be enough for you in the long term is something you should consider when thinking about retiring in Tennessee.
What are the pros and cons of retiring in Tennessee?
There are both pros and cons to retiring in Tennessee.
The pros of retiring in Tennessee:
Affordability: The Volunteer State has a lower cost of living than many other states, and there are several affordable retirement communities in Tennessee, making it an attractive destination for retirees on a fixed income. Tennessee also has relatively low taxes in certain areas.
Natural beauty: Tennessee is known for its natural beauty, from the Great Smoky Mountains National Park to the Tennessee River. Retirees can enjoy living in a peaceful environment that offers plenty of opportunities for outdoor activities such as hiking, fishing, and boating.
Culture and entertainment: Tennessee has a rich cultural heritage, with numerous music festivals, art galleries, and museums. The state is also home to Nashville, the country music capital of the world, and Memphis, the birthplace of rock and roll.
Healthcare: Tennessee has a high-quality healthcare system, with many highly ranked hospitals and medical centers.
The cons of retiring in Tennessee:
Weather: Tennessee's climate varies greatly depending on the region, but many areas experience hot and humid summers and cold winters. This may not be ideal for retirees who prefer a more moderate climate.
Natural disasters: Tennessee is prone to natural disasters such as tornadoes, floods, and earthquakes, which could be a concern for retirees living in certain areas.
How much does Tennessee tax retirees?
Tennessee is one of the most tax-friendly states in the US.
Tennessee does not charge income tax, meaning income from your retirement savings and Social Security is not taxed at the state level. Public and private pensions are also not taxed.
The state also has a lower cost of living than elsewhere in the US, meaning your reduced retirement income will go further.
You can also pass on your estate safe in the knowledge that the state will not impose inheritance or estate taxes on your beneficiaries.
What age can you retire in Tennessee?
In Tennessee, there isn't a specific retirement age mandated by law.
Residents who can financially support themselves are free to retire whenever they choose.
However, if you're considering retirement in Tennessee, there are some age-related benefits and considerations to keep in mind:
Social Security Benefits: You can start receiving Social Security benefits at age 62. However, delaying benefits increases your monthly payments. Depending on your birth year, full retirement age (FRA) is between 66 and 67. Delaying benefits until after FRA results in even higher monthly payments.
Medicare Eligibility: Medicare eligibility starts at age 65, regardless of your retirement status. If you retire before 65, you'll need alternative healthcare coverage until you become eligible for Medicare.
Retirement Savings: Regardless of when you retire, it's crucial to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement. You can check out the average retirement savings in the US for more insights.
Get expert retirement advice
If you’re still unsure about where to retire, it’s wise to seek expert advice.
An SEC-regulated advisor can help you make informed decisions about your retirement options.
Unbiased can match you with a financial advisor who can help you plan to achieve your goals. Get started here.
Frequently asked questions
Content writer
Kate has written for leading publications and blue chip companies over the last 20 years.