Retiring in New York vs. Pennsylvania: A Comprehensive Guide for Residents

New York carries a certain appeal for retirement. It has Manhattan for one thing, plus other trendy burros like Brooklyn and Queens, not to mention well-known locales outside the Big City, like Long Island and Albany.

But many on the East Coast who are interested in living in New York also wonder how it compares to living in nearby Pennsylvania. This guide aims to provide such a comparison of retiring in New York versus Pennsylvania, focusing on aspects critical to making an informed decision.

First thing’s First: Is New York a Good State to Retire In?

According to a recent study highlighted by the New York Post, New York ranks among the worst states to retire in 2024, primarily due to its high cost of living, including taxes, healthcare costs, and overall expenses associated with day-to-day living.

Of course, for those with enough funds, that is not a deterrent. But let’s delve into those details, plus other differences between a New York retirement and a Pennsylvania one.

Cost of Living Comparison

The cost of living is often the most immediate concern. Retiring in Pennsylvania generally offers a more affordable cost of living compared to New York. Housing costs, including property taxes, are significantly lower in Pennsylvania. Groceries, healthcare, and utility expenses also tend to be more affordable. Pennsylvania does not tax pensions or Social Security income, which can result in substantial savings.

Beyond the cost of living and taxes, retirees should consider other financial aspects such as inheritance taxes and the cost savings of a retirement budget in Pennsylvania. The state's favorable tax treatment of retirement income can significantly impact your financial planning and estate considerations.

Housing Market Analysis

The median home price for retiring in New York is substantially higher than in Pennsylvania, making the latter an attractive option for retirees looking to downsize or maximize their retirement savings. 

For those looking to leverage the current housing market by selling high without having to buy high, retirement communities make a great option. Many New Yorkers decide to sell their home for a great price and use the proceeds to move into a retirement community and stock their nest egg. It’s a great way to get immediate access to funds.

Quality of Life

Quality of life in retirement isn't just about affordability; it's about living in a place that meets your needs and preferences. Both states offer diverse living experiences, from city life to serene countryside settings. Retirement life in Pennsylvania offers varied geography, which allows retirees to choose a location that suits their desired lifestyle, whether that's near mountains, lakes, or cultural hubs. And of course, you’re only a brief car or train ride away from New York City.

Weather

Weather plays a significant role in the daily lives of retirees. Retiring in New York, you will experience a wide range of weather conditions, with cold winters and hot summers. Pennsylvania's climate is similar but generally features slightly milder summers and less severe winters, especially in areas in the southeast corner of the state, which tends to more commonly receive warmer air from Virginia and even the Carolinas as opposed to Canada. This milder climate can be more comfortable for outdoor activities year-round, though overall, there is not a huge difference in weather and both East Coast locations will give you all four seasons.

Access to Healthcare

Access to quality healthcare is a critical consideration. Both New York and Pennsylvania boast extensive healthcare networks, including specialized senior care facilities. Pennsylvania's healthcare system is highly rated, with several hospitals recognized for excellence in senior care. The state's Medicare Advantage plans offer various options, catering to different healthcare needs and budgets.

Community and Social Life

Retirees often seek vibrant communities where they can engage in social activities and hobbies. Retiring in Pennsylvania or New York will present a rich tapestry of cultural events, community groups, and recreational activities tailored to retirees. And as previously mentioned, both are close enough that you can live in one and enjoy the opportunities of another. 

Of course, nothing can match the vibrant downtown community bubbling in a NYC burro, but Philadelphia is no slouch when it comes to great community, especially when you consider the tight-knit passion of Philadelphia sports fans. In both locations, from active adult communities to senior centers and volunteer opportunities, there's no shortage of ways to stay engaged and connected.

Retirement Communities Comparison

Many retirees in these areas opt for moving into a retirement community, for the convenience of gated neighborhoods with dining and activities all close to their home; with landscaping, snow shoveling, and home maintenance all handled for them; with a built-in network of peers; and more. 

Outside of NYC, plenty of New York towns have enough space for large, lovely campuses complete with walking trails and nature gardens, fitness centers and pools, and the like. But Pennsylvania has a higher percentage of Continuing Care Retirement Communities (CCRCs), which are independent living communities that also offer on-campus assisted living and skilled nursing care services when needed. 

As one example, Acts Retirement-Life Communities oversees eight CCRCs in Pennsylvania. These and other CCRCs provide residents with:

• Peace of mind: The value of on-campus health services cannot be overstated. With Acts’ Type A Life Care contract, additional long-term health services like assisted living and skilled care are provided for no direct increase to monthly costs. This means retirees can plan their budget without needing to leave a question mark for what future health services might cost.
• Comprehensive amenities: Each campus provides resort-like amenities, such as exquisite dining services, enriching life engagement and hobby activities, wellness areas like fitness and spiritual centers, and so much more.
• Social community: Be amongst friends, with a community of others at the same point in life as you, ready to live their golden years to the fullest. How do card games every night sound? Or pickleball with a great foursome every day? Or learning a language together, reading in the library, playing Bridge? Every day is what you want it to be, surrounded by who you want to be with.

Why Pennsylvania Might Be Your Ideal Retirement Destination

Retiring in Pennsylvania offers numerous advantages over New York, from a more affordable cost of living to a diverse range of lifestyle options. While the decision will ultimately depend on personal preferences and financial considerations, Pennsylvania is a good place to retire for New York retirees.

What Taxes Do Retirees Pay in Pennsylvania?

Retirees in Pennsylvania enjoy a relatively tax-friendly environment. The state exempts Social Security income from taxes and does not tax distributions from 401(k)s, IRAs, or pensions, making it an attractive destination for those looking to maximize their retirement income. However, retirees should be aware of other taxes that may affect them.

Pennsylvania imposes a state income tax rate of 3.07% on other types of income, which is comparatively low. Property taxes are a consideration for homeowners, but the state offers a property tax/rent rebate program for seniors aged 65 and older, which can alleviate some of this burden. Sales tax in Pennsylvania is 6%, with certain items like food, clothing, and prescription drugs exempted, further easing the tax load on retirees. Despite these Pennsylvania retirement tax benefits, it's important for retirees to consider the local taxes imposed by municipalities, as these can vary and impact the overall tax scenario.

Where Does PA Rank as a Retirement State?

Pennsylvania ranks as a moderately favorable state for retirement, according to various studies and analyses that consider factors such as cost of living, healthcare, taxes, and quality of life. While it may not top the lists in every category, its strengths in tax policy, healthcare, and living options make retiring in Pennsylvania a worthy option for anyone considering where to spend their retirement years.

Compared to other states, Pennsylvania offers a balanced mix of affordability, quality of life, and access to healthcare, making it an attractive option for retirees, especially those coming from higher-cost states like New York.

Discover the vibrant retirement life awaiting you in Pennsylvania. And remember that whether you're drawn to the serene landscapes, the rich cultural tapestry, or the affordable luxury living options, Acts Retirement-Life Communities has something special for everyone. Contact us today for more information or to schedule a visit to one of our communities.