Should You Retire Out of State?

Now that California can’t chase after you for income tax on pension money you receive after you leave the state, does that tip the scales in your decision whether to stay here in retirement?

PROS

* State income tax rates are far lower--sometimes nonexistent--in other states.

* The cost of housing is still lower almost everywhere else. Costs other than food tend to be lower as well.

* You may enjoy the excitement of settling in new surroundings.

* You can get away from (or closer to) your children and the responsibilities of baby-sitting the grandchildren.

CONS

* You might miss family and friends.

* You’ll lose easy access to familiar doctors, accountants and other services.

* Your bill for long-distance phone service will increase.

* If you move to a colder climate, you might have to buy coats and sweaters.

* Many advantages of moving out of state may be enjoyed by moving to another place nearby--within California.