According to the Pew Research Center, “the number of retired Boomers has increased by 1.1 million” since February 2020, and the increase is more pronounced in those residing in the Northeast. This trend is no surprise to those who understand the benefits of retirement in places like Wyomissing, Pennsylvania.
For those considering the retirement benefits available to them, it is important that they are informed about the financial advantages of a Pennsylvania retirement.
Pennsylvania offers a cheaper cost of living than its surrounding states and a lower than average sales tax, which makes it a smart place for anyone to live. Of particular interest to those investing for retirement, though, are the tax incentives they offer on retirement income.
When you retire in Pennsylvania, you can stretch your nest egg further than in most states. Pennsylvania offers generous tax breaks and abatements for retirees. As you think about your savings for retirement, consider these advantages:
If you are reaching retirement age and are intrigued by the advantages of a retirement lifestyle in Pennsylvania, you might consider joining the Future Resident Club at The Highlands at Wyomissing®. As a member, you can enjoy the support and assurance that a worry-free life awaits you after retirement.
Retirement planning in Pennsylvania is simpler than in other states because, as was laid out in the first part of this article, there are no taxes on retirement income. Still, you will want to do your due diligence and work with professionals to plan for your retirement.
Here are some common action steps you can take before you leave your job and begin this new phase of your life.
1. Consider your retirement age.
You are eligible to draw from Social Security at age 62. However, this payment will be reduced unless you wait until your full retirement age.
It can be complicated to know what to expect from Social Security. Your best bet is to create an account on My Social Security so that you can monitor your contributions and project your future earnings.
2. Assess benefits from current and previous jobs.
It would be a shame to leave a job and not to have gleaned the benefits that were offered to you. Before you transition, you’ll want to take a closer look at your current job’s benefit package and make sure that you have taken advantage of all you are eligible to receive.
If there is any dental work you’ve been putting off, if you need a new pair of glasses, or if there is an elective procedure you want done, you might want to take care of those things now while you are covered by your current insurance.
Also, if you have been a state employee at some point in your life, you’ll want to understand the State Employees' Retirement System so that you are aware of any financial benefits you earned with this employment.
3. Calculate the inheritance tax on your estate.
A consideration you might make as you are planning your financial future is what of your wealth and estate you would like to pass on to heirs.
In Pennsylvania, the inheritance tax that your heirs or beneficiaries will be responsible for is largely dependent on their relationship to you.
Your spouse or an heir who is under 21 will not be subjected to an inheritance tax. Neither will there be a tax when funds are left to a charitable organization. The inheritance tax for a direct heir like a child or grandchild, however, is 4.5 percent, and the tax rate for siblings is 12 percent.
4. Meet with a financial advisor to make a plan.
Everyone’s situation is different, and the advice you may receive from a financial advisor will depend on your unique circumstances and goals for your retirement.
That being said, your retirement plan should look at the breadth and depth of your financial portfolio. You will consider your retirement spending needs, any credit card debt you have, life insurance and health insurance costs, property taxes on your estate, and any other relevant financial considerations.
When you’ve squared away the financial planning of retirement, you can begin to think about the freedom and the possibility of this promising new phase of life. The life you want awaits you, and there are communities like The Highlands at Wyomissing that offer services and amenities that will enhance your vision for your future.
Transitioning to life at The Highlands at Wyomissing is easier than you might think. While you’re considering your financial future, check out our cost comparison worksheet for insight into the benefits you can expect when making a move to Wyomissing, Pennsylvania.
The Highlands at Wyomissing® opened its doors in April of 1989 with apartments for those who needed a helping hand with daily activities. Since then, we have grown into a large community of homes and apartments, amenities and services, and so much more.
With over 113 acres of gently rolling hills, lush walkways and towering trees, The Highlands at Wyomissing has offered stunning amenities, engaging activities and endless opportunities for more than 30 years. Located just outside of Reading, Pennsylvania, we’re proud to be the only nonprofit Life Care Community in Berks County, where residents are free to live their active, independent lifestyles with a continuum of care available right at home if they ever need it.
When you choose The Highlands at Wyomissing, you’re free to create a retirement that mirrors what you’ve always wanted for your future. What are you waiting for? Get a taste of what life is like on our vibrant campus at The Highlands at Wyomissing by contacting us at 610.370.6668 for more information.