Should You Retire in Virginia?

If you're a history buff, cities like Jamestown and Williamsburg in Virginia are probably already on your travel list. And if you love the great outdoors, Virginia's beaches, mountains, and lakes might have caught your eye.

But if retiring in the Old Dominion has ever crossed your mind, there's even more to factor in. Virginia could easily make it to the top of your list if the pros stack up in your favor.

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First, let's talk about the cost of living. While Virginia isn't the cheapest place to retire, it won't break the bank, either. The overall cost of living is just about 3% above the national average, per the World Population Review.

Housing costs, which can take a good chunk of retirement income, are about 10% higher than the national average. The typical home price in Virginia was recently $400,435.

However, if you're open to more affordable areas, like Roanoke or Lynchburg, your retirement dollars could stretch much further. On the upside, the average annual cost of car insurance in Virginia recently came in at $2,808 -- $209 below the national average.

How about healthcare? Virginia ranks as the 32nd-best state in the nation for elderly healthcare by MedicareGuide.com. That's not terrific, but it still outperforms 18 other states.

When it comes to taxes, Virginia is one of the 41 states that don't tax Social Security benefits. While pension income and withdrawals from 401(k) and IRA accounts are taxable, you might qualify for an age-based deduction to lower your tax bill. And there's no estate tax in Virginia.

Now, weather can definitely be a dealbreaker. The good news? Virginia gives you a taste of all four seasons without the extremes of hot summers or freezing winters. But if you're eyeing coastal spots like Virginia Beach or Norfolk, you'll want to be prepared for hurricane season.

Before making any big decisions, consider spending a few months in Virginia to see if it's a good match for your retirement lifestyle.

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