What Age Can You Retire in Maryland?
For most people, there’s a perception that “retirement age” is a specific number. In many circumstances, it’s considered age 65. However, this isn’t always a hard and fast rule, as there are different requirements for federal programs as there are for state ones. This means that while there might be one retirement age for some, the actual age you retire can vary depending on the state you live in and its laws.
Maryland is a good example of this. The state has a number of different retirement ages, depending on the type of retirement benefits you are eligible for. It’s important to understand these differences if you’re close to retirement age and living in Maryland. It’s also crucial to understand when you can retire in Maryland if you’re considering moving to the state for certain tax benefits that are available to retirees. Here’s what you should keep in mind.
The Different Types of Retirement Ages in Maryland
Because of the differences between how Maryland handles retirement age and how it’s handled federally, it’s useful to explain the two. First is how the federal government determines whether you’re eligible for Social Security retirement benefits. In Maryland, like the rest of the United States, the full retirement age for Social Security is 67. However, you can retire before this age in Maryland. You can elect to begin receiving benefits as early as age 62, but your benefits will be reduced since you’ll be receiving them for several years longer than if you waited until 67.
Meanwhile, compare this to the Maryland State Retirement System. Under the state’s system, the “normal” retirement age is 65. Like Social Security, though, you can retire earlier if you’re willing to see your benefits under the state system reduced. However, unlike Social Security, Maryland offers the opportunity to receive retirement benefits as early as age 55, which is much sooner than Social Security would ever allow.
Additionally, there are also private retirement plans that you can avail yourself of if you’re living in Maryland. The retirement age for private plans will vary, sometimes widely, depending on the plan. While there’s not much in the way of standardization here, most plans will allow you to start receiving benefits as early as age 55 if you’re willing to have those benefits reduced for early retirement. In addition to the retirement age, there are several other factors that affect your eligibility for retirement benefits for private plans. These factors include your years of service, your salary, and your contributions to the plan.
Why Retire in Maryland in the First Place?
With Maryland offering alternatives to retiring between the ages of 62 and 67, it’s often considered a moderately advantageous state to retire in. However, there’s much more you should consider when it comes to what Maryland can offer to retirees. In fact, there are multiple advantages to retiring in the state. These include:
- Tax-friendliness: Maryland is a tax-friendly state for retirees. Social Security benefits are exempt from state income taxes, and withdrawals from retirement accounts are partially taxed. Additionally, new laws passed in Maryland offer even more tax advantages to Maryland retirees. This will make your retirement income go further in the state than if you were living elsewhere.
- Cost of living: The cost of living in Maryland is relatively low, compared to other states. This means that your retirement income can go further in Maryland. This is especially true for the cost of healthcare. Access to affordable healthcare for older adults is a major advantage. Our bodies change as we age, and our healthcare needs do as well. The quality of healthcare available in Maryland is quite high thanks to its central location so close to our nation’s capital. There are also numerous continuing care retirement communities in Maryland that include within their amenities access to assisted living and skilled nursing care.
- Weather: Maryland has a mild climate with four distinct seasons. This means you can enjoy the outdoors year-round without worrying too much about bitter cold winters or unseasonably warm summers. Its proximity to the Atlantic Ocean naturally results in a milder climate than other areas in the United States.
- Activities: Maryland has a variety of activities for retirees to enjoy. These include hiking, biking, fishing, golfing, and visiting museums. The proximity to other Mid-Atlantic points of interest, such as Washington, D.C., or Philadelphia, Pennsylvania, means you will always have something interesting going on nearby. A trip to the nation’s capital or the birthplace of the U.S. Constitution is always memorable!
- Retirement Communities: Maryland has some of the most attractive and affordable retirement communities in the United States. These resort-like communities offer world-class amenities and comfortable living arrangements, many for reasonable costs, providing opportunities to enjoy your retirement to the fullest.
When Can You Retire in Maryland?
Maryland is a great state to retire in. It has a number of advantages, including a tax-friendly environment, a low cost of living, a mild climate, and a variety of activities for older adults to enjoy. The fact that Maryland considers what age you can retire to be anywhere between the ages of 55 and 65 is also a major advantage, especially if you have the resources to retire early without having concerns about reduced benefits payments.
We’ve only scratched the surface when it comes to retiring in Maryland and why it’s such a popular state to do so. There’s much more to learn about how Maryland handles retirement. If you have further questions, talk to a trusted financial advisor with experience in retirement planning. Additionally, if you want to maximize your retirement, be sure to look into any of the many excellent retirement communities in Maryland and how they can help you maintain your retirement savings while offering fulfilling amenities (have you considered selling your home and adding the profits to your nest egg?).
