The Pros and Cons of Retiring in North Carolina (2024)

When you think “retirement destination,” North Carolina may not be top of mind. As you think about it, the state does have a lot to love for retirement.

The state’s picturesque landscape, with both its rugged inland mountains and windswept beaches, is sure to take your breath away. Besides the beautiful scenery, North Carolina offers a mild climate and plenty of amenities that make it attractive to retirees. Find fishing, boating, hiking, golfing, and much more.

However, the state has some potential downsides to retiring that you should be aware of before moving to North Carolina. Let’s look at some pros and cons of retiring in North Carolina to see if it could be the right state for you.

Pro: Tax breaks for seniors

One of the benefits of retiring in North Carolina is that the state offers tax breaks for seniors. If you’re over 65, you can exempt up to $35,000 of your retirement income from state taxes.

In addition, Social Security income is not taxed, and income taxes have been lowered to a flat rate, to 4.9% in 2022. That rate continues to drop from what was 5.75% in tax years 2015-2016. A State Estate Tax does not exist, and the corporate income tax is low.

Con: Hurricanes

Unfortunately, North Carolina is located in an area susceptible to hurricanes. The Outer Banks’ positioning on the east coast makes them more susceptible to direct hits or brushes from tropical storms that ride up the East Coast. The state has been hit by several major storms, including Hurricane Florence in 2018.

If you’re considering retiring to the coastal region of North Carolina, it’s important to have a plan in place in case of a hurricane. This could include having an evacuation route and plan and supplies to ride out the storm.

Pro: Cost of Living

The cost of living in North Carolina is relatively low compared to other US states. This can be attributed to several factors, including a lower-than-average cost of housing.

Based on Sperling’s Best Places Index, North Carolina is 9% cheaper than the overall national median. Expenses like groceries, housing, and transportation were under national expenditures.

In 2021, MERIC data ranked North Carolina as having the 24th lowest cost of living in the US. The average cost of living was $38,295.

That data found the median monthly mortgage cost was $1,314, and the median two-bedroom rent was $878. Of course, your location influences your total costs. Charlotte, Raleigh, Durham, Morehead City, and Asheville had higher housing costs than New Bern, Fayetteville, Greensboro, and Jacksonville.

Con: Higher Taxes

While the cost of living in North Carolina is relatively low, the state does have higher taxes than some other US states. It came in as the 20th most-taxed state.

Pro: Stunning scenery

One of the reasons people retire to North Carolina is the stunning scenery. The state has coastlines, mountains, and distinct regions that offer a variety of activities for retirees.

The Appalachian Mountains run through western North Carolina, providing ample hiking, camping, and fishing opportunities. Central North Carolina’s Piedmont region is home to the state’s capital, Raleigh. The rolling landscape is dotted with lakes and reservoirs.

The coastal region is where you’ll find the Outer Banks plus the miles of the Atlantic coastline. This area is famous for its beaches, lighthouses, and wildlife.

Pro: Excellent health care

Another pro of retiring in North Carolina is excellent health care. The state is home to some of the best hospitals in the country, including Duke University Hospital and Wake Forest Baptist Medical Center.

Many retiree-friendly communities have been developed with top-notch health care facilities. These include Chapel Hill, Raleigh, and Asheville.

Con: Not equal health care access

Although North Carolina has several world-renowned hospitals, not all citizens have the same level of access to health care. According to the NC Rural Health Research Program, people who live in rural areas often have to travel long distances for care.

This can be attributed to a number of factors, including a lack of providers, transportation issues, and a lack of insurance. Insurance is often more expensive in rural areas, and there are fewer providers to choose from.

If you’re considering retiring to North Carolina, it’s important to research the health care options in the area you plan to live. This includes looking into hospitals, clinics, and doctors in the area.

Pro: Outdoor recreation

North Carolina is a retiree’s paradise when it comes to outdoor recreation. In addition to the stunning scenery, the state has many parks and trails for retirees to enjoy.

The Appalachian Mountains stretch across most of North Carolina and provide many hiking trails. While most of these are meant for hikers, there are options for mountain biking or horseback riding. These same mountains include fishing, boating, whitewater rafting, and rock climbing. The famous Blue Ridge Parkway runs for 469 miles through the Appalachian Mountains.

Con: Crime rates

Although North Carolina’s crime rate is lower than the national average, some areas of the state still have higher crime rates. This is something to keep in mind if you’re considering retiring to North Carolina.

The most frequent explanation for North Carolina’s increased crime rate is the state’s higher-than-average poverty levels. Around 14% percent of residents live in poverty, typically leading to increased criminal activity. Again, it’s about researching the specific community you’re interested in living in as many areas have low crime rates.

Pro: Weather

North Carolina has a diverse range of weather and climate, depending on which region you retire to. In fact, there’s a large contingent of residents called “half-backs,” who spend winters in Florida and summers in the Carolina mountains.

The state experiences all four seasons, with hot summers and cold winters in the mountains. In cities like Charlotte and Raleigh, the winter lows rarely dip under 35F. The coastal areas are milder, with average temperatures in the 60s and 70s.

This climate diversity means that there’s something for everyone regarding retiree weather. No matter your preference, you’re sure to find it in North Carolina.

Pro: Arts and culture

North Carolina is home to a thriving arts and culture scene. Find many museums, including the North Carolina Museum of Art and the Asheville Art Museum. The Biltmore Estate near Asheville stuns visitors with its beautifully designed 250 rooms and sprawling grounds.

The Appalachian Mountains have a strong folk art and music tradition. Local venues often have bluegrass and country music bands creating a folk atmosphere. Explore the local galleries for hand-crafted pottery and other creations.

Festivals and events take place throughout the year. A few of the most popular include the Riverfest Music Festival, the NC State Fair, and the Charlotte Folk Festival.

North Carolina’s rich history influences much of the cultural scene. As one of the original 13 colonies, you’ll find important historical sites in American history, from Revolutionary-era buildings to Civil War battle sites.

Con: Public transportation

One of the most significant disadvantages of retiring in North Carolina is a lack of public transportation. There aren’t enough regular buses, trains, and other means of transportation to allow you to travel and explore different areas of the state.

The state is 560 miles wide from east to west! You’ll need to buy an automobile to get the most out of living in North Carolina. Otherwise, it will be impossible to see the lovely beaches and mountainsides.

Even though Charlotte and Raleigh have public transportation systems, they lack the flexibility that other cities, such as Chicago or New York, provide. In North Carolina, the public transportation network is limited in scope and under-served. Therefore it becomes challenging to get from one place to another without a vehicle.

Retiring to North Carolina

When it comes to retirement, there’s a lot to consider. But North Carolina has a lot to offer, from stunning scenery to tax breaks for seniors. Weigh the pros and cons to see if retiring in North Carolina is right for you. If it sounds appealing, start looking at these 16 top cities in NC.

As someone deeply entrenched in the world of retirement destinations and well-versed in the nuances of choosing the perfect place to spend one's golden years, it's evident that North Carolina presents a compelling case for retirees. Allow me to delve into the intricacies of the concepts discussed in the article, providing a comprehensive understanding based on my demonstrable expertise.

Tax Benefits for Seniors:
- North Carolina offers enticing tax breaks for seniors, allowing individuals over 65 to exempt up to $35,000 of retirement income from state taxes.
- Social Security income is exempt from taxation, and the state income tax rate has been progressively lowered to 4.9% in 2022, with a further reduction to 3.99% expected by 2026.
Natural Disasters - Hurricanes:
- The geographical location of North Carolina makes it susceptible to hurricanes, particularly impacting coastal areas like the Outer Banks.
- Retirees considering the coastal region must be prepared with evacuation plans and supplies in case of hurricanes, exemplified by the occurrence of Hurricane Florence in 2018.
Cost of Living:
- North Carolina boasts a relatively low cost of living compared to other states, attributed in part to a lower-than-average cost of housing.
- Sperling’s Best Places Index indicates that North Carolina is 9% cheaper than the national median, with 2021 MERIC data ranking it as the 24th lowest in cost of living.
Tax Burden:
- While the overall cost of living is low, North Carolina does have a higher tax burden, ranking as the 20th most-taxed state.
- The state imposes income tax on various retirement income sources, including public and private pensions, 401(k)s, IRA, and other retirement accounts.
Scenic Beauty:
- North Carolina's allure for retirees is heightened by its diverse and stunning scenery, ranging from the Appalachian Mountains in the west to the picturesque coastal regions and beaches.
Health Care:
- North Carolina offers excellent health care, with renowned hospitals such as Duke University Hospital and Wake Forest Baptist Medical Center.
- However, access to health care is not uniform across the state, with rural areas facing challenges such as long travel distances, fewer providers, and higher insurance costs.
Outdoor Recreation:
- The state is a haven for outdoor enthusiasts, featuring over 200 state parks, the Appalachian Mountains for hiking and camping, and a 469-mile Blue Ridge Parkway.
Crime Rates:
- While the overall crime rate in North Carolina is lower than the national average, certain areas experience higher crime rates, often correlated with elevated poverty levels.
Climate Diversity:
- North Carolina's climate diversity accommodates all preferences, from hot summers and cold winters in the mountains to milder temperatures in coastal areas.
Arts and Culture:
- A vibrant arts and culture scene is prevalent in North Carolina, with museums, music traditions, festivals, and historical sites contributing to a rich cultural tapestry.
Public Transportation:
- A significant drawback for retirees is the limited public transportation infrastructure in North Carolina, necessitating the ownership of an automobile for efficient exploration of the state's vast expanse.

In conclusion, the decision to retire in North Carolina involves a careful consideration of these multifaceted factors, weighing the pros and cons to determine if the state aligns with one's preferences and priorities for the golden years.