Instead of retiring in their 60s, many Baby Boomers today are planning to continue working well into their 70s and 80s in what is being called a worktirement. Whether it be for financial reasons, or just enjoyment from their jobs, the benefits of having the additional income from working -- even part time -- helps supplement Social Security checks and IRA or 401K withdrawals.
In a recent study, SmartAsset examined factors including the number of seniors, the average effective tax rate, and the senior unemployment rate to identify the best cities for a worktirement. AJ Smith, SmartAsset's VP of Content, discussed with FOXBusiness.com some of the findings from the study.
Boomer: What factors should Boomers take into consideration in choosing where they retire?
Smith: Everyone's needs and desires will be different in retirement. It's a good idea to continually think about what's important to you and factor that into your retirement plan. Regional factors that affect the quality of life for retirees, like medical care and social opportunities, can be important considerations when choosing where to retire. Additionally, factors like the average effective tax rate, median housing costs, and the senior unemployment rate can be particularly important for Boomers who plan to stay in the workforce in their golden years.
Boomer: What were the key findings from the study?
Smith: Florida is not only a popular destination for retirees, but also a great state for a worktirement, according to our study. Four of the cities in our top 10 are located in the Sunshine State. Along with low average effective tax rates, Florida offers high concentrations of seniors and senior-related amenities, like doctors' offices and recreational facilities.
According to our analysis, the West is also a great region for seniors who would like to stay in the workforce. Four western cities crack our top 10 cities for a worktirement.
Not one Northeast city ranked in our top 10, perhaps due to high housing costs and taxes. Erie, PA and Buffalo, NY did manage to crack our top 25, however.
Boomer: What were the top 3 cities for Boomers to retire to and why?
Smith: Fort Lauderdale, Florida; Pompano Beach, Florida and Medford, Oregon rank as the top 3 cities for Boomers who are interested in working (at least part-time) in retirement. These cities have high concentrations of seniors and low average effective tax rates, which may help seniors in the workforce keep a larger portion of their paychecks.