Our summer vacation was an adventurous trip to Alaska this year! It’s been a bucket list item for years and a chance to visit my 49th state. Also, my significant other Quinton and I use vacations to explore new places and seek out cities for a potential “snowbird retirement” when the time comes.
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ust days before our trip, I learned that Alaska ranked last in the Top States for Business rankings according to a recent report from CNBC. FYI…Texas ranked first. And for retirees, Alaska fell in the middle of U.S states for affordability, quality of life and healthcare. So why last in business and mediocre for retirement? Alaska is in a severe budget crisis and has the highest unemployment rate in the nation at 7.2 percent. Expenses are higher than in most states for transportation, utilities, some food and housing, and particularly long-term care, if needed.
We started our journey in Fairbanks, travelling by train in the breathtaking Dome Car (which I highly recommend), stopping for a few days in Denali National Park, Anchorage and Whittier. We chose these areas to experience the park, a metropolitan city and a small town of just 250 residents to learn from the locals about life in Alaska.
On the “plus” side for retirees, we loved the many hours of sunlight in the summer, beautiful outdoors, nice people and tax structure. Alaska is a tax friendly state, with no state income tax. The state doesn’t tax Social Security retirement benefits or pension payments. Additionally, there is no state sales tax in Alaska and no estate or inheritance tax.
On the “iffy” side, healthcare and airport access could be an issue if we selected a remote location. Housing costs are broad depending on where you choose to live. Transportation costs more due to higher gasoline prices, but car insurance is less expensive. And while the long days of sunlight are wonderful for a few weeks, the many hours of darkness in the winter could be unbearable.
In the “minus” column are some of the by-products of a lackluster economy that may take years to improve, including potential crime, poverty and aspects of healthcare. As an example, a long-term care need for skilled nursing care is double the expense of most other states in the country!
Despite the disappointing rankings, we had a wonderful time exploring the last frontier. Alaska is truly a beautiful state, a hiker’s paradise filled with many adventures, nice people and lots to do.
When planning your golden years, first paint a picture of what you want it to look like. If travel or another destination is in the picture, take the opportunity to explore and research the area before you make the transition. For us, Alaska is a beautiful, wild place for vacation, but didn’t make the list for our “snowbird retirement”, at least for now.
Ready to talk about your retirement planning?
Call me at +1 (702) 263-8492.