Newsbreak: Vanguard Group Study Uncovers Surprising Way Retirees Can Pocket $100,000, But Only If They’re in the Right Location!

Many retirees have found themselves $100,000 richer because of property investments they made decades ago, according to a study by Vanguard Group. The study shows that the typical homeowner saved almost $100,000 in 2019 by selling their primary home and moving to an area with lower home prices. Downsizing is seen as an important channel for retirees to shore up their retirement funding.

However, not all retirees can benefit from selling their homes, as the amount they receive depends on various factors, including location. Retirees in regions with high home value appreciation, such as the West Coast, Northeast, and select states, have the best opportunity to take advantage of this strategy.

In contrast, homeowners in certain states may lose money when selling their homes, and retirees should consider the impact of moving on their Social Security benefits. Most states do not tax Social Security income, but some do above certain thresholds.

Based on a report by GOBankingRates on March 8, 2023, think carefully before selling your home and moving to another state. Retirees should weigh the benefits of lower home prices against the potential loss of Social Security income due to state taxes. Connecticut allows retirees with AGI less than $75,000 for single filers and $100,000 for joint filers to deduct most or all of their Social Security income.

Colorado residents aged 65 and over can fully deduct Social Security benefits from their state income taxes, but younger beneficiaries might still owe state taxes on a portion of their benefits. According to GOBankingRates, other states that tax Social Security benefits, even if only over a particular wage threshold, include Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.