Pros and Cons of Retiring in Louisiana


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Retiring to Louisiana has many benefits, but there are some things you should be aware of before making such a big decision. If this retirement destination is seriously on your mind and you want to learn more about the costs associated with living here, this information might help you make your decision one way or the other.

The pros of retiring in Louisiana include the low cost of living, tax rate, and an abundance of activities for retirees. Some cons of retiring in Louisiana include the poor healthcare system, extreme weather, and high crime rates.

If you’re thinking about retiring in Louisiana, this article will help guide you through the pros and cons of living here. Whether it’s the crime rate, healthcare options, or taxes, we cover all the essential information to make your retirement decision easier.

The Benefits of Retiring in Louisiana

Pros and Cons of retiring in Louisiana

Louisiana’s retirement benefits are pretty appealing when it comes to settling down for your golden years of life. The state offers a low cost of living that is attractive to seniors looking for retirement deals but who still want access to things like museums or other cultural activities without spending too much money. 

Not only that, but there are many opportunities here for retirees who love the outdoors because Louisiana has lots of rivers along with miles upon miles of coastline, which makes it perfect for fishing enthusiasts! 

Louisiana is one of the top retirement destinations because it offers affordable housing and a low cost of living. Plus, if you’re looking to slow down your life or spend more time doing what makes you happy, it can offer beautiful outdoor spaces like beaches as well as historical cities that will make anyone feel welcome! 

It also happens to have warmer weather than most other places in America, which allows retirees to spend more time outdoors without having to brave the cold weather.

Louisiana Is Tax-Friendly for Retirees

Louisiana’s retirement tax laws make it an excellent place for retirement because if you’re over the age of 65, then your cost of living is going to be dramatically reduced. 

This means that all income sources, including retirement income from pensions and social security benefits, won’t be taxed by this state which makes life much easier on retirees who have already worked hard enough during their lives.

Another reason why so many seniors choose Louisiana as their retirement destination has to do with its lenient qualification rules regarding disability status! The people in charge here know how expensive medical costs can get, and they want to help those who need assistance most.

If you qualify for social security retirement benefits but are also in need of disability assistance to cover your medical expenses, then Louisiana is definitely a retirement state that you should consider.

The state income tax doesn’t apply to Social Security retirement benefits or public pension income. Other sorts of retirement pay, such as private pension payments, are taxed after a $6,000 exemption for everyone 65 or older. While sales taxes in Louisiana are high, property taxes are very low. There’s no estate or inheritance tax in Louisiana.

Buying Property in Louisiana May Be Beneficial for Retirees

Louisiana has the fifth-lowest average property tax rate in the United States, at 0.53 percent. Buying property in Louisiana may outweigh renting, especially for retirees.

Louisiana retirement benefits are tax-free, and homes in Louisiana don’t have large property taxes. These factors can reduce the cost of living when you retire there.

There’s a broad range of retirement communities in Louisiana that provide different amenities such as: 

  • Golf courses
  • Pools
  • Other recreational activities for seniors to enjoy their retirement years! 

Whether or not this state fits your retirement criteria will be up to you, but consider Louisiana’s many positive aspects before making any decisions on where to settle down after retiring.

Louisiana Has a Very Low Cost of Living

Louisiana has a much lower cost of living than the national average. Out of 100, BestPlaces ranks Louisiana’s cost of living at 86.9, well below the national average. The cost of housing is especially low in Louisiana. The low cost of living in the state is due to its:

  • Low property taxes
  • Low tax rates for retirees
  • Reasonable cost of health care (though access is limited)

There are many positive aspects of living in Louisiana, but there are also some negative ones as well. When it comes down to deciding where you want to retire, make sure you know all the facts before making any decisions. 

Louisiana Can Be a Comfortable Place To Retire

The weather here means that retirees will be able to enjoy their retirement years much more because they won’t have to worry about snow or cold temperatures! This retirement destination offers all four seasons, just like other areas do. Still, there are never any extremes which makes everything very pleasant and easy on everyone living there.

Louisiana has plenty of homes available for seniors who want to retire in comfort and style while still being close enough to family members if needed, at least during emergency situations. The majority of people choose either condos or townhomes when moving into an area.

When it comes to activities and things to do, Lousianna ranks very high on the list compared to a lot of states. There are tons of retirement communities that offer a full range of activities and events for seniors, including:

  • Festivals
  • Art shows
  • Concerts

When it comes to the weather, Louisiana is known for having mild winters with very little snowfall which makes living here more comfortable compared to northern states where winter can be brutal or other southern states where summers may last too long without any relief from cooler temperatures.

The Disadvantages of Retiring in Louisiana

One disadvantage of retiring in Louisiana is the cost of utilities such as electricity, gas, and oil. Also, repairs for your home can add up quickly if you’re not aware of how much they’ll charge to fix certain items like a broken pipe or roof leak. 

If you have an older car, it could also be very costly because some garages may try to take advantage of someone who doesn’t know better about what needs to be done with their vehicle when it comes time for maintenance. Another disadvantage would be the high crime rate throughout Louisiana, especially in New Orleans.

Louisiana Often Experiences Extreme Weather

Pros and Cons of retiring in Louisiana

Louisiana is no stranger to extreme weather. It’s important to know what you’ll be getting into when considering retirement in the state of Louisiana. This means knowing about anything from hurricanes, flooding and droughts, and heavy rain.

In Louisiana’s history, the state has experienced many natural disasters. Hurricane Katrina in 2005 brought about $131 billion worth of damage, and it killed more than 1800 people. It was considered to be the costliest hurricane ever recorded at that time.

Flooding is also a problem for Louisiana residents because there are problems with dykes along canals.

There have been other hurricanes such as Gustav (2008), which caused 23 deaths and approximately $700 million in property damage, while Lili (1996) resulted in 18 fatalities, millions without power, flooded homes where numerous roads were washed out, including parts of I-49 due to heavy rainfall between September 28th through October 12th.

April, October, and May are the most pleasant months in Louisiana. The five most comfortable months in Louisiana have high temperatures ranging from 70 to 85°F (21.11 to 29.44°C). August is the state’s hottest month, with an average high temperature of 92.2°F (33.44°C).

In Louisiana, July is the month with the greatest humidity (95%). July, August, and June are the most uncomfortable months because of their excessive humidity (85%).

Utilities in Louisiana Can Be Costly

Utilities can also cost more here because any repairs needed on your home can add up quickly. 

The cost of utilities varies across the state, but on average, they tend to be more expensive in the southern part of Louisiana. In New Orleans, for example, you can expect a monthly bill of around $211 on average, while a resident living in Baton Rouge will pay roughly $152 per month on utilities.

Though utility costs in the state are still below the national average, they rank higher than many other states popular for retirement. For example, Mississippi has an average cost of $90 per month for utilities compared to Louisiana’s $152.

Home maintenance is expensive because of a lack of local resources, such as building supply stores. Louisiana has a lack of resources because of its climate. This is because it’s in a subtropical/tropical region with significant natural disasters, such as hurricane season and flooding. 

There are, however, many programs through the U.S. Department of Housing and Urban Development that can help homeowners in the state find affordable services and supplies.

Homeowners insurance is above national averages, too: A sample homeowner policy costs about $429, compared to a U.S.-wide average rate of just over $400. Buying a home in Louisiana is an investment, and as such, it’s essential to protect that investment through homeowner insurance.

The average monthly cost of heating oil was $365. It costs more than twice the U.S.-wide national average of $165 per month. This discrepancy can be attributed to the fact that homeowners aren’t allowed to choose their own suppliers and must buy from companies deemed qualified by state regulators. 

The retirement lifestyle might not be for everyone, but many factors about retirement communities in Louisiana make them worth considering when exploring one’s options. 

Louisiana Is Ranked Worst for Access to Healthcare

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In 2013, around 43 percent of Louisiana’s citizens were covered by an employer. Louisiana had the highest proportion insured through Medicaid, at 20%, as well as the lowest proportion enrolled in Medicare, at 15%. The uninsured rate in Louisiana was 12%, which was the smallest among compared to its neighboring states.

Louisiana has the worst healthcare in the country, according to a new WalletHub study. The cost of medical and dental services was taken into account, as were average insurance premiums. 

The healthcare system in Louisiana is ranked last in the country. This is because of high rates of uninsured and poor access to healthcare services, especially when compared with other states in America.

This ranking comes from a survey that looked at factors such as:

  • Insurance coverage through employers or government programs like Medicare/Medicaid.
  • Average monthly premiums for health plans, doctor visits, and patient medical bills relative to income level, among other areas related to getting affordable care when sick. 

Louisiana’s highest mirroring factor was Medicaid enrollees (20%) – more than any other state surveyed – although it also had one of the lowest levels enrolled under traditional Medicare programs (15%). The number of people insured by their employers has remained steady since 2012 at  36%, but the state has seen a rise in people saying they’re uninsured (from 17% to 22%).

Louisiana Has an Extremely High Crime Rate

Another drawback is the state’s higher than average crime rate. Louisiana has the fifth-worst violent crime rate in the United States, with nearly 6 in 10 people worrying about it every day.

The state’s violent crime rate is almost twice that of the national average, which can be concerning for retirees who prefer little or no risk when it comes to their personal safety.

The high crime rate is attributed to the high poverty rate and young population. The high crime rate in Louisiana may be a deterrent to retirement in the state. There are many excellent retirement communities in Louisiana, but crime may make some people think twice about moving there. 

Crime is high throughout most of Louisiana, and numerous retirees have been victims of it. This can be particularly dangerous for older residents who might not feel safe walking at night or going out alone during the day. 

Many cities have initiatives that help reduce retirement community crime rates by increasing police presence or even adding more security systems on certain streets where retired individuals live. 

To get an accurate picture of how much criminal activity occurs within retirement communities, one must specifically look at statistics from senior centers and retirement homes located within their city limits.

Louisiana tops the regional and U.S. violent crime rates by several points. These are:

  • Within the safest cities, it accounts for 69% of violent crime. 
  • Robbery is the second-most frequent type of violence, although it isn’t nearly as common as aggravated assault. It comprises 16% of all violent acts throughout the state.

Is Louisiana a Good State for Retirees?

In terms of cost of living and affordable retirement, Louisiana is a good state for retirees. Crime rates are high, however, particularly with regard to a violent crimes such as murder and assault, and this makes Louisiana one of the least safe retirement destinations on our list.

On the one hand, many of the state’s retirement communities not only provide a low cost of living but also access to excellent medical care and social support networks which can make life easier for seniors as they age.

However, as already mentioned, Louisiana has an extremely high crime rate due to poverty and the young population. With that in mind, some retirees may find it to be a less than desirable place to retire. 

The state also offers some particularly extreme weather as well as its fair share of natural disasters, including hurricanes and floods during the summer month, another reason to carefully consider your priorities before choosing Louisiana as a retirement location.

What Is the Average Retirement Income in Louisiana?

Louisiana offers some of the lowest retirement income in the U.S. The average retirement income for Louisiana is $23,372. When compared to the national retirement income, which stands at $31,231, Louisiana retirees average a much lower income.

State retirement income varies across the country and ranges from $20,000 to as much as $55,000. However, there are a few states, such as Hawaii and Maine, which offer much higher retirement incomes than even New York or California, for example. 

On average, those who retire in Louisiana enjoy an annual retirement income that is 38% lower than other U.S. retirement destinations. 

The median home price of homes aged 65 years and over was just under $87,00, according to Zillow research data published last year. This places it at around one-third below national levels of approximately 200,000 dollars per annum on real estate costs alone.

Conclusion

Louisiana is a popular place to retire. It offers a low cost of living, beautiful natural scenery, and the opportunity for outdoor activities year-round. There are many retirement communities in the state that offer assisted care if necessary, as well as social engagement opportunities.

The negative aspects of retirement in Louisiana are the lack of access to healthcare because of a poorly operating healthcare system, low public transportation available in its rural areas, and inconsistent availability of healthcare. 

The addition of an extremely high crime rate and poor public education system make retirement in Louisiana an unappealing prospect to many.

Sources

 

Ruth

Hey there, my name is Ruth, I'm in my late fifties. My life was turned upside down a few years ago as I experienced a burn-out. But I saw it as a sign that something had to change in my life. I'm happy I used this tough experience as a stepping stone. I now feel happier than ever and hope to inspire you to do the same, no matter how old you are.

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