If you’ve thought about moving in retirement, your list of potential locations is likely long. Your options are virtually endless without the limitations of a nine-to-five job or kids at home. But if you’re looking for somewhere warm, inviting, and full of life, you can’t go wrong with a city like New Orleans.
Here’s a look at the top seven reasons why you should focus your retirement planning efforts on The Big Easy.
Reason #1: Tax-Friendly Laws
New Orleans is a particularly tax-friendly city for seniors, as it offers several notable tax breaks for those in retirement. Not to mention, Louisiana has the fifth lowest property taxes in the country, which is excellent news for those planning on buying a home in retirement.
In general, Louisiana’s state taxes are considered to be lower than the national average. The income tax rates for Louisiana residents range from 1.85% to 4.25% — though these rates are set to be reduced beginning April 1, 2024 (if specific criteria are met).1
Here’s a quick look at some notable tax breaks for retirees.
Social Security: Louisiana does not tax Social Security benefits, meaning your Social Security payments will not add to your taxable income for the year (at the state level).
Retirement Income Exemptions: Certain retirement income is exempt from state taxes. These include:
Railroad retirement benefits
Military retirement plans
Income from federal, state, or local government
In addition, those 65 and older can exclude up to $6,000 (or $12,000 for married filers) from other retirement income including pension payments, annuity benefits, and IRAs.1
Property Taxes: If you’re a homeowner over 65 and have an adjusted gross income (AGI) of $100,000 or less, you may be eligible to “freeze” your home’s assessed value and lower your property tax liability. If you make extensive home improvements, however, you may lose this benefit.1
Estate and Inheritance Tax: Louisiana does not impose an estate or inheritance tax on its residents.
Reason #2: Rich Culture
Cities in the South are known for their southern hospitality, and New Orleans is no different. The locals are friendly and welcoming, and the city is known for its vibrant and unique cultural events. It’s no secret that New Orleans is the birthplace of jazz, and it’s home to some incredible jazz and blues festivals, bars, and concerts that occur all year round. Whatever you’re in the mood for, you can almost certainly find a show to enjoy every night of the week.
The food scene in New Orleans is one of the most famous in the world. It features influences from France, Africa, the South, and almost everywhere. Hit the tourist favorites like Cafe Du Monde or Commander’s Palace, or find yourself a hole-in-the-wall lunch spot. Wherever you go, you’re bound to stumble upon something delicious.
The city is also home to many historical sites, whether you want to partake in one of the many cemetery tours, visit the World War II museum or just jump on a streetcar and enjoy the stunning architectecture.
Reason #3: No Lack of Activities
Food and music aside, New Orleans boasts tons of year-round activities. We don’t call it the Sportsman’s Paradise for nothing!
If you or your spouse are interested in sports, grab tickets to the next Saints game or watch the New Orleans Pelicans in action. The city is home to many local sports leagues and recreational teams — if you’re more interested in getting on the field than watching from the sidelines.
Both in the city and nearby, you’ll find many outdoor activities to partake in. River cruises on the Mississippi, airboat tours to see the alligators, fishing, biking, hiking, golf — you name it, New Orleans has it.
Established in 1791, the famous New Orleans French Market is open daily and houses six blocks of farmer stands, retail booths, food, and more. It’s just one of many shopping areas within the city. Keep exploring; you’ll find more unique shops and stands around every corner.
Reason #4: It’s Called “The Big Easy” For a Reason
Yes, New Orleans is a major metropolitan area. But it’s not called “The Big Easy” by accident. The city has a slow, relaxed feel to it that can help ease newcomers into the day-to-day without feeling too rushed or overwhelmed. If you’re moving from a small town or suburb, you’ll still be able to make New Orleans feel like home in no time.
You’ll find wetlands and many areas full of greenery and wildlife outside the city. This can help make the city feel more intimate and relaxed since you don’t have to travel far to feel connected to nature.
New Orleans has a subtropical climate, and you’ll find homes and lawns (especially in the Garden District) teeming with green trees, colorful blooms, and lush, green lawns every day of the year. The winters are dryer, but the temperature rarely falls below 35 degrees F.
Reason #5: Low Cost of Living
The cost of living in New Orleans is around 4.6% less than the national average, though living in the city is more expensive than in other parts of Louisiana.2
But as far as cities go, New Orleans has reasonably priced food, transportation, and entertainment options. Not to mention its gas prices are still some of the lowest in the country.
When preparing to spend retirement in a new city like New Orleans, comparing everyday expenses to your current costs is essential. You may be budgeting too much money in some areas (like transportation) and not enough for others (like housing). Looking at these expected living costs will help ensure you follow a realistic retirement savings strategy roadmap.
Reason #6: Special Assistance for Seniors
As you think about your future needs in retirement, it’s helpful to note that New Orleans has some highly rated assisted living and memory care facilities.
In addition, the greater New Orleans area provides many assistance programs for seniors, such as van and accessible transportation services, community centers, meals on wheels, home care programs, and more. If these are offerings you think you may want to take advantage of in the future, look at what’s available in the New Orleans area you’re considering moving to.
There is no lack of healthcare systems in New Orleans, including not-for-profit systems, University-affiliated programs, and more. You should have no problem accessing specialized services or finding a new primary care physician.
Reason #7: Fun for Family and Friends to Visit
Undoubtedly, once you’re settled into your new city, you’ll have plenty of visitors! With so many fun things to do every part of the year, your friends and family will surely want to visit often. New Orleans has something for everyone in your family, including young kids.
Preparing for Retirement?
Deciding where you’ll retire to is exhilarating. You’ve worked hard your whole life to save diligently, now’s the time to reap the benefits of all that planning. Our team at Bienvenue is located right in New Orleans, and we specialize in helping those in or near retirement make the most of their time in The Big Easy.
If you’d like to learn more about what we do or chat about your upcoming move to the city, feel free to reach out to us anytime.
Sources:
1Louisiana State Tax Guide
2Cost of Living in New Orleans, LA