Why This Gorgeous Beach Town is The Perfect Place for Your Retirement | Global News Avenue

For avid golfers and beach lovers looking to enjoy their favorite sun-soaked pastime in retirement, Orange Beach, Alabama, may not be the first destination that comes to mind. It’s a small town on Alabama’s Gulf Coast with a population of just 8,095 people, but don’t let the fact that you might not have heard of it stop you.

Orange Beach is a wealthy area with beautiful amenities, but at the same time, it’s also a surprisingly affordable place to retire. In fact, it even earned a spot on Southern Living’s list of the top ten most affordable places to retire in the South.

Many retirees have discovered this Alabama city, as the average age of Orange Beach is 51.6 years old, and residents 65 or older make up 28.5% of the population. Learn more about Orange Beach’s retirement benefits, including no Social Security taxes…and so much golf!

Below average cost of living

The average housing cost in the area is $1,279, which is only 10 percent higher than the average monthly housing cost in the South as a whole, which is $1,163. Despite the lower cost of living, Orange Beach residents’ median income of $90,402 is well above the national median income of $74,580.

Orange Beach’s median home price is also higher than the national cost ($709,385 vs $420,400 as of Q3 2024), but keep in mind that a handful of multi-million dollar homes may impact that number. If you look closely at the homes for sale in Orange Beach, you’ll find several homes priced in the $300,000 range. In other words, if you are retire Thanks to the lucrative income, Orange Beach remains affordable compared to other affluent beach communities.

Why this is the key to an affordable retirement

Housing is often the largest budget item for retirees. Retirees earn a median monthly income of $7,533 and need to spend 17% of their income on housing costs (based on Orange Beach’s median housing cost of $1,279), which puts them at a good position as housing expenses typically require About 23% of housing expenses. income.

low property taxes

Baldwin County, where Orange Beach is located, has a county tax rate of 0.320%, one of the lowest in the South. In fact, Alabama’s property tax rate ranks 50th in the nation. For a $400,000 home, the cost is $1,280 per year, or just over $100 per month.

Why this is the key to an affordable retirement

For retirees planning to buy a home without owning a property mortgageit’s especially important to consider property taxes because it’s an expense you’ll be responsible for as long as you own your home. In some parts of the country, property tax The numbers are huge, thousands each year. If you are located in one of these areas and move to Alabama, you can immediately reap the benefits of significantly lower property taxes.

Any time you can lower your expenses, you can help your regular income go further.

Preferential tax treatment

Alabama may not be a no-income-tax state, but it has lower rates and no taxes social Security. Progressive personal income tax rates range from 2% to 5%, but most people earn enough to pay the top rate. Still, 5 percent is modest compared with other parts of the country that are near or above double digits.

Alabama’s average combined state and local sales tax rate of 9.29% is also one of the lowest in the nation, ranking 13th. This means overall item costs in Alabama may be more manageable.

Why this is the key to an affordable retirement

For retirees on a fixed income, how their income is taxed can be an important factor in their decision about where to settle. That’s why you often hear people flocking to one of the few income-tax-free states like Florida. Although Alabama has a graduated income tax on most income, the state allows retirees to take Social Security without paying any taxes.

The average retirement Social Security check is $1,788.12 per month. Living in a state that doesn’t tax these funds can give you more wiggle room in your budget.

Other Amazing Benefits Orange Beach Offers Retirees

As the city’s slogan goes: “Life is better here”. This is especially true for any senior seeking a laid-back retirement with plenty of warm-weather recreational opportunities. There’s something for everyone, including those who enjoy fishing, boating, golfing or lounging at the beach. Orange Beach, AL checks all of these boxes, plus it’s more affordable than many other luxury oceanfront communities.

Orange Beach has 32 miles of white sand beaches and numerous shopping, entertainment and dining options to keep active retirees busy. There always seems to be some festival or event happening in or around Orange Beach, from car shows to art exhibitions. It’s also a golfer’s paradise, with 14 courses in the area, including courses designed by Arnold Palmer, Jerry Pate and Earl Stone . Some of these include the Robert Trent Jones Golf Trail, which includes 11 championship golf courses.

Residents also have access to excellent health care, with South Baldwin Regional Medical Center one of the best hospitals in the state, providing emergency, diagnostic and surgical care.

bottom line

If your ideal retirement includes coastal living, sun, sand, and golf, Orange Beach, Alabama, might be worth exploring. You’ll have access to all the typical beach town amenities, but the cost of living is lower than some other popular retirement havens.

From paying no taxes on Social Security benefits to one of the lowest property tax rates in the country, your retirement income can go a long way in Orange Beach. While home prices in Alabama vary widely, running into the millions of dollars, don’t let the high median home price fool you – you can certainly find homes for a lower budget. As our calculations found, the median monthly housing cost is only slightly higher than the rest of the South, and you can get a lot of lifestyle value from the extra investment.

methodology

The 2024 Best Places to Retire in the South list was selected from all census-designated locations in the Southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and Western) Virginia). Median household income and monthly housing cost estimates are based on data collected across the South from the 2022 American Community Survey (5-year period). Places with large errors in estimates were removed from the initial list.

The final list of locations was selected through an evaluation of:

1. Relative to housing affordability in the South (how the monthly housing costs in each place compare to the weighted average of Southern states),
2. Median income for each locality (as a proxy for taxes that may be associated with community resources; and
3. Personal reports on proximity to parks or shorelines, recent changes in the community, and previous reports from Southern Living highlighting the best places to retire.