Ultimate Guide to Retiring in New Hampshire

New Hampshire, known for its scenic landscapes and low taxes, is a popular destination for retirees seeking tranquility and affordability. This guide covers what you need to know about retiring in the Granite State, from determining the best retirement age to selecting the perfect town and planning for financial security.

What age can you retire in New Hampshire?

The age at which you can retire in New Hampshire largely depends on your financial situation, lifestyle goals, and Social Security benefits. Here's an overview of the key retirement ages.

Early retirement (age 62)

You can begin collecting Social Security as early as age 62. However, doing so will result in reduced monthly benefits — up to 30% less than what you'd receive if you waited until your full retirement age. This reduction is permanent.

Full retirement age (66-67)

For individuals born between 1943 and 1954, the FRA is 66, while those born after 1960 reach FRA at 67. Waiting until your FRA allows you to receive 100% of your Social Security benefits.

Delayed retirement (up to age 70)

Delaying your Social Security benefits until age 70 increases your monthly payment by about 8% for each year past your FRA. This can significantly boost your long-term financial security, especially if you anticipate a longer retirement.

Deciding when to retire in New Hampshire will depend on your financial readiness, health, and retirement goals. Consider the benefits of waiting for your full or delayed Social Security payout to enhance your retirement income.

Why do people choose New Hampshire to retire?

New Hampshire offers several advantages for retirees. Here are some key reasons why people choose the state for their golden years.

No state income or sales tax

One of New Hampshire's biggest draws for retirees is its tax-friendly environment. The state has no income tax on Social Security, pensions, or wages and no sales tax. This can result in significant savings for retirees.

Beautiful scenery and outdoor activities

New Hampshire is famous for its breathtaking landscapes, including the White Mountains, pristine lakes, and scenic coastlines. Retirees can enjoy hiking, boating, skiing, and outdoor activities year-round, making it perfect for nature lovers.

Low crime rate

New Hampshire consistently ranks as one of the safest states in the country. This makes it an appealing place for retirees looking for peace of mind and a secure living environment.

Proximity to major cities

New Hampshire is close to major metropolitan areas such as Boston, Portland, and even New York City. Retirees can enjoy the tranquility of small-town life while having easy access to urban amenities.

Quality healthcare

The state offers access to high-quality healthcare, particularly in Manchester, Nashua, and Concord. Dartmouth-Hitchcock Medical Center in Lebanon is a renowned healthcare facility providing top-notch medical services.

Four distinct seasons

New Hampshire offers the beauty of four distinct seasons, from colorful autumns to snowy winters and vibrant springs. Retirees who enjoy seasonal changes will appreciate the state's varied climate.

Affordable housing (in some areas)

While the southern part of the state can be more expensive, northern New Hampshire and smaller towns offer relatively affordable housing, which can help stretch your retirement budget.

Cons of retiring in New Hampshire

Despite its many advantages, retiring in New Hampshire has a few challenges. Here are some potential downsides to consider.

Cold winters

New Hampshire's winters can be long and harsh with heavy snowfall and freezing temperatures. For retirees who prefer a warmer climate, winter weather may be a significant drawback.

Property taxes

While there's no state income or sales tax, New Hampshire has one of the highest property tax rates in the country. Retirees who own homes should factor this into their budget.

Limited public transportation

Outside of a few urban areas, public transportation in New Hampshire is limited. Retirees who prefer not to drive may find it challenging to get around, especially in rural parts of the state.

Higher cost of living in some areas

In the southern part of the state, particularly near Boston, the cost of living can be higher than in other parts of New Hampshire. Housing can be more expensive in these regions.

Limited cultural and entertainment options

Compared to larger states, New Hampshire has fewer cultural and entertainment options, especially in rural areas. Retirees who enjoy museums, theaters, and fine dining may find the options somewhat limited.

Shorter growing season

For those who enjoy gardening, New Hampshire's shorter growing season can be a challenge. The state's cold climate limits the types of plants and vegetables that can thrive.

Potential for isolation

Retirees who settle in more rural parts of New Hampshire may experience isolation, particularly during the winter months when outdoor activities are more limited.

Best places to retire in New Hampshire

New Hampshire has many charming towns and cities, each offering its appeal. Here are five great places to consider for retirement.

1. Portsmouth

On the coast, Portsmouth offers a vibrant downtown with restaurants, shops, and cultural attractions. The city provides easy access to the Atlantic Ocean and scenic views, making it ideal for retirees who want to enjoy waterfront living.

2. Hanover

Home to Dartmouth College, Hanover has a strong sense of community and access to cultural activities. Retirees can enjoy walking trails, cultural events, and top-tier healthcare at nearby Dartmouth-Hitchcock Medical Center.

3. Concord

As the state capital, Concord offers urban amenities and small-town charm. Retirees can benefit from affordable housing, historic landmarks, and numerous local shops and restaurants.

4. Meredith

Nestled on Lake Winnipesaukee, Meredith is a picturesque town known for lakeside living. Retirees can enjoy boating, fishing, and stunning water views while taking advantage of the town's relaxed atmosphere.

5. Nashua

Nashua, near the Massachusetts border, offers proximity to Boston while maintaining a lower cost of living. The city provides access to healthcare facilities, shopping centers, and recreational activities, making it a popular choice for retirees.

Why choose New Hampshire to retire?

When compared to nearby states such as Massachusetts, Vermont, and Maine, New Hampshire offers several distinct advantages for retirees.

1. Tax-friendly policies

Unlike Massachusetts and Maine, New Hampshire's lack of income or sales tax can save retirees thousands of dollars annually. This makes it an attractive option for those seeking to maximize their retirement income.

2. Natural beauty and outdoor activities

New Hampshire offers a wealth of outdoor activities, from skiing and hiking in the White Mountains to relaxing on the shores of Lake Winnipesaukee. While other states also offer natural beauty, New Hampshire's combination of mountains, lakes, and coastline makes it unique.

3. Lower cost of living compared to Massachusetts

Although parts of southern New Hampshire can be pricey, the overall cost of living is lower than in neighboring Massachusetts. This makes New Hampshire a more affordable option for retirees seeking proximity to Boston without the high costs associated with city living.

Cost of living in New Hampshire

The cost of living in New Hampshire can vary significantly depending on where you live. Here's a breakdown of some typical expenses.

Housing

• Southern New Hampshire: The average home price in areas such as Nashua and Portsmouth is around $480,000, while rents range from $1,500 to $2,500 a month.
• Northern New Hampshire: Home prices are more affordable in northern towns, with the average home costing between $200,000 and $300,000.

Groceries and transportation

• Groceries: New Hampshire's grocery costs are similar to the national average, with slight variations depending on proximity to metropolitan areas.
• Transportation: While fuel prices are on par with the national average, retirees should consider the cost of maintaining a vehicle, especially if they live in rural areas where public transportation is limited.

Healthcare costs

Healthcare in New Hampshire tends to be higher than the national average, particularly in more urban areas. Retirees should budget for out-of-pocket medical expenses even if they have Medicare coverage.

Comparison with other states

Compared to nearby states such as Massachusetts and Vermont, New Hampshire offers a lower overall cost of living. Housing is generally more affordable, and the absence of income and sales taxes provides additional savings for retirees.

Creating additional income streams to support retiring in New Hampshire

Given the potential property tax burden and healthcare costs in New Hampshire, planning for additional income streams in retirement is essential. Here are a few strategies.

1. Retirement savings

Maximize contributions to your 401(k), IRA, or Roth IRA during your working years. These tax-advantaged accounts allow your investments to grow over time and provide a crucial source of income during retirement.

2. Health savings accounts

Contribute to a health savings account to cover healthcare expenses during retirement. They offer tax advantages and can help alleviate the burden of rising healthcare costs.

3. Income annuities

Fixed or immediate income annuities provide retirees with a stable and guaranteed income stream. Annuities can be a reliable way to cover basic living expenses, property taxes, or healthcare costs during retirement.

Ways to save on retirement in New Hampshire

There are several ways to make retirement more affordable in New Hampshire.

1. Fixed annuities

A fixed annuity is a popular retirement product that provides a guaranteed, steady stream of income for retirees. When you purchase a fixed annuity, you make a one-time payment or a series of payments to an insurance company, and in return, they promise to pay you a regular, fixed amount either for a set number of years or the rest of your life.

Here are some benefits of fixed annuities:

Guaranteed income: Fixed annuities provide a reliable, predictable income stream, which can help cover essential living expenses during retirement.

Tax-deferred growth: Any interest earned within a fixed annuity grows tax-deferred, meaning you won't owe taxes on the earnings until you start receiving payments. This allows your investment to compound over time.

Protection from market volatility: Unlike investments tied to the stock market, fixed annuities offer security by providing a stable income regardless of market performance, which can be especially valuable during economic downturns.

2. Immediate annuities

If you're looking for an instant income stream, an immediate annuity can be a practical solution. You exchange a lump sum for regular payments that begin right away, providing financial security in retirement.

3. Senior property tax exemptions

New Hampshire offers property tax exemptions for seniors in many towns. Retirees can benefit from reduced property tax rates depending on their age, income, and the town in which they live.

4. 401(k) and IRA accounts

By contributing to a 401(k) or IRA, retirees can enjoy tax-deferred growth on their savings, helping to stretch retirement funds and create a steady income stream for the future.

Retiring in New Hampshire

Retiring in New Hampshire offers a balance of affordability, natural beauty, and tax-friendly policies. With proper planning, you can take full advantage of the state's many benefits, including no income or sales tax, access to outdoor recreation, and proximity to major cities. Whether you're seeking a peaceful lakeside retreat or a bustling small town, New Hampshire is a great place to enjoy your golden years.

MM202711-310876