If you're a fan of horses, low living costs, and all that Mother Nature has to offer, the state of Kentucky may be the right place for you to retire. Conversely, if you thrive on the hustle and bustle of densely populated metropolitan areas, the Bluegrass State might not be for you.
Living in Kentucky
Life's a little slower than average for most of the state's 4.5 million residents, but it's also cheaper. Depending on the expense in question, costs range from 10% to 20% less than the national average. Housing is particularly affordable compared to most other states.
Taxes are modest too. This year's top marginal income tax rate is 4%, and Social Security income isn't taxed at all. The first $31,110 of other retirement income (from pensions, 401(k) accounts, IRAs, etc.) is also exempt from taxation. Statewide sales tax on most goods stands at a reasonable 6%.
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Although living in Kentucky may not cost a lot, there are other matters to consider. Outside the bigger cities of Lexington (population 320,000) and Louisville (population 624,000), towns become surprisingly small. The next biggest city is Bowling Green, with a population of only 76,000. Beyond its 20 biggest cities, the typical Kentucky town's population is less than 20,000.
Given these small markets, it could be relatively tough to find specialized healthcare services, fine dining, a range of shopping options, and premium entertainment. That's the trade-off for fresh air, wide open spaces, and access to outdoor amenities like hiking, fishing, camping, and recreational water.
However, in addition to Lexington and Louisville, the city of Cincinnati is within easy driving distance for most northern Kentuckians. Knoxville, Memphis, and Nashville are accessible for anyone living in the southern portion of the state.
Worth a pre-retirement visit
Granted, it's not for everyone. Folks moving out of densely populated cities may or may not like the distinctly slower lifestyle. Most rural areas are very community-oriented, but can also be quiet. If you're looking for that slower pace, though, it's certainly worth a visit to see if Kentucky's right for you.
