Ultimate Guide to Retiring in Rhode Island

Retiring in Rhode Island

Finding the right place to retire is crucial if you want to spend your golden years how you've always imagined them. Rhode Island is quickly emerging as a popular choice for retirees, featuring beautiful coasts, scenic towns, and close-knit communities. It's known as the "Ocean State," and it's easy to see why.

One of the biggest advantages of retiring in Rhode Island is the easy access to Boston and New York City. Nothing beats being able to head to the Big Apple without having to live among the traffic that comes with it. While Rhode Island offers access to big city adventures, its small size and slower pace of life make it a perfect pick for retirees looking for somewhere to settle down.

Pros and cons of retiring in Rhode Island

Like any potential retirement destination, retiring in Rhode Island comes with pros and cons that you should consider before moving. Getting a thorough understanding of the potential benefits and drawbacks that come with moving to Rhode Island is a great way to decide if it's the best place for you to retire.

Pros of retiring in Rhode Island

Rhode Island is home to some of the most quaint, picturesque coastal towns in America. Towns such as Newport, Bristol, and Westerly come with breathtaking waterfront views, charming streets filled with historic homes, and lively local communities. As one of the first colonies of America, Rhode Island has some of the richest history this country has to offer.

The state of Rhode Island can trace its history back nearly 400 years to 1636 when the first settlement was established. If you're a history buff, there aren't many states better than Rhode Island. Its Gilded Age mansions and colonial-era landmarks are perfect if you appreciate our country's past.

Summers in Rhode Island are mild and temperate, perfect for outdoor enthusiasts who like to spend their time in the sun. You can enjoy Rhode Island's beaches, boating, and fishing activities in pleasant weather for a good portion of the year. Whether you enjoy relaxing by the sea or sailing along the coast, summers in Rhode Island are exactly what most people are looking for in retirement.

Many of Rhode Island's smaller towns offer a slower pace of life, which is usually ideal for retirees. Communities are close-knit, and local events, markets, and neighborhood gatherings help foster a sense of belonging. Rhode Island is also close to major East Coast cities, so you can get the best of both worlds in the Ocean State.

Cons of retiring in Rhode Island

While Rhode Island's summers are mild, its winters can be harsh. The coastal state experiences cold temperatures and a significant amount of snow, with occasional Nor'easters that can bring heavy snowfall and high winds. If you prefer warmer climates year-round, Rhode Island's winter weather may be a drawback.

Coastal beauty often comes with a higher price tag, and Rhode Island is no exception. Like most states on the coast, the cost of living is higher than the national average, especially when it comes to housing. Coastal towns such as Newport and Bristol can have high property values, and property taxes in Rhode Island are some of the highest in the country.

Limited public transportation can also be a problem if you don't drive. Rhode Island's public transportation is especially limited in rural areas, forcing non-drivers to the coast. If you rely on efficient public transportation, this could be another potential drawback to consider.

Cost of living in Rhode Island

The cost of living might be one of the most influential factors when you're looking for a new state to retire in. A lower cost of living might allow you to spend more money on nonessentials, while a higher cost of living may force you to downsize depending on your current situation. As a coastal state, Rhode Island has a higher cost of living than the national average, with the most expensive locations being closest to the coast.

Housing costs

Housing is one of the largest areas of expense for retirees. In Rhode Island, the prices of houses can vary greatly depending on their location, with houses on the coast costing much more than their urban counterparts. Coastal towns such as Newport, Middletown, and Narragansett are highly sought after for their beautiful ocean views and proximity to beaches, but they come with much higher home prices.

On the other hand, inland areas such as Warwick and Cranston offer more affordable housing options while still providing access to desirable urban amenities and nearby beaches. The median home price in these areas is closer to the national average, making them a more budget-friendly choice if you're looking to downsize.

Everyday expenses

While housing may eat up most of your budget, you should also take your everyday expenses into consideration. Groceries, utilities, and transportation make up most of your everyday spending. Electricity and heating bills can increase in the colder months due to the state's chilly winters. If you don't have your own form of transportation, living in a big city such as Providence can provide you with the public transportation you need to get around.

Health care costs

Health care might be the second highest area of spending for retirees outside of their housing costs. Rhode Island offers great medical facilities, but it's important to make sure you can afford them. The Ocean State is home to some of the most acclaimed health care providers in America, including Lifespan and Care New England. If you're interested in living in Providence, you'll have easy access to Miriam Hospital, the highest-ranked hospital in the state.

Medicare does a good job of covering a lot of different health care costs for retirees, but out-of-pocket expenses, long-term care, and any specialists you need to see can add up. If you have any chronic conditions, you may need to factor these into your regular care as well. Be sure to take health care costs into consideration before you choose to retire in Rhode Island.

Taxes and retirement income

Rhode Island isn't the best state for retirement income, but it isn't the worst. It's one of the few states to tax Social Security income, but only for a select group of people. The Ocean State also has a slightly higher than average property tax rate at 1.53%, with the national average being 0.99%. Rhode Island's sales tax is also slightly higher than the national average. No matter where you live, there are always ways to lower your tax burden.

Rhode Island's estate tax is much stricter than the federal government's. The federal estate tax will give you $13.61 million in exemptions in 2024, while Rhode Island will only give you $1,774,583, nearly a 10th of the federal rate. Estate tax can eat into the funds you want to pass along to your inheritors, so it's something you should consider before you head to the Ocean State.

Best Places to retire in Rhode Island

Rhode Island might be the smallest state in the U.S., but that doesn't mean that retirees don't have plenty of options when they're looking for the best place to retire. Rhode Island stands out as a top-tier choice among those about to retire for its diversity. If you're looking for bustling city life, a laid-back retirement on the beach, or something in the middle, you can find it in Rhode Island.

Newport

If you can afford it, Newport is one of the best places to retire in Rhode Island. It's a popular destination for many reasons, adding to how much it costs to live there. It sits on the Aquidneck Island within Rhode Island and houses boats, yachts, and every type of sea-faring vessel you can imagine. If you like the water, you'll love Newport.

Newport is a smaller city of around 25,000 people, giving it a quaint feeling. As one of the oldest cities in America, Newport is also home to a wealth of history. There are beautiful Gilded Age mansions to visit, with the most famous being The Breakers, a symbol of the Vanderbilt family's power and fame.

Providence

As the state's capital, Providence comes with a lot of the amenities you'd expect from a city of its size. It has top-notch health care facilities, dozens of museums and cultural centers, and even an Ivy League school in Brown University. Providence is a great choice if you want some stimulus in your golden years.

Housing in Providence is more affordable than in coastal cities such as Newport. There are also more housing options, allowing you to choose between cozy condos, historic homes, or modern apartments. This can give you the lifestyle you want in the city you want it in.

Should you retire in Rhode Island?

While retiring in Rhode Island comes with a lot of positives, there are some key downsides to consider. It's one of the most visually stunning states, but that doesn't come without a price. As a coastal state, Rhode Island has higher than average cost of living prices, property taxes, and everyday expenses. It's also one of the few states to tax certain Social Security payments.

If you can afford it, however, Rhode Island is worth it. It has everything a retiree could want from their new home: beautiful beaches, a rich history, and plenty of picturesque nature to explore.

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