Planning Your Retirement in Utah? Here are a Few Things You Need to Know
Regardless of its reputation as one of the world’s premiere ski destinations and the fact that it is home to five national parks, most people don’t associate the state of Utah with retirement. Yet many retirees are discovering just what it means to live a “Life Elevated” in the intermountain west.
Utah Ranks Among the Nation’s Healthiest States
Studies have shown that Utah’s aging population is among the healthiest in the country. Currently, one in ten Utahns is over the age of 65, but that number only tells half of the story. In 2010, the life expectancy within the state was 82 years for women and 78 for men, well over the national average. Many researchers attribute this increased longevity to the fact that Utahns tend to have lower than average rates of obesity and diabetes and lower incidences of binge drinking and smoking.
We also enjoy access to exceptional and affordable health care. A recent study found that Utah’s health care ranks among the highest in the nation in both quality and affordability. The unique focus on patient outcomes without increased cost is credited with this phenomenon. The study found that Utah hospitals had 142 medical discharges per thousand Medicare enrollees in 2012. The national average was 209. Hospitalized Medicare patients also went home almost twice as fast as the national average. Both statistics owing to healthcare providers’ commitment to creating positive outcomes as quickly as possible.
Of course, you can’t mention Utah healthcare without talking about IHC. Intermountain Health Care (IHC) is the largest healthcare provider in the intermountain west, offering 23 hospitals in Utah and Idaho as well as more than 190 clinics across the state.
Should the worst happen, the world-renowned Huntsman Cancer Institute, located on the University of Utah’s campus, is an NCI designated comprehensive cancer center. Known for its groundbreaking research in cancer treatment, this facility ranks in the top 1 percent in the nation for patient satisfaction.
Utah’s Economy is Thriving
Utah’s strong economy may be creating unprecedented growth throughout the state, but it is also what draws retirees to this part of the Rockies. Our low unemployment rate (currently nearly 1% below the national average) coupled with the third largest rate of economic growth in the nation make Utah an ideal place to enjoy a booming economy. And that growth doesn’t show signs of stopping.
One third of the state’s population is under the age of 19, a group that will join the workforce in the next ten years. This young workforce will keep the economy growing as older generations look toward retirement. But even many retirement-age Utahns prefer to stay active, with one in five remaining in the workforce, directly contributing to that economic growth. It is this group that is most likely to begin a “third act” business venture tapping into a highly educated, young workforce who is ready to contribute to their community.
Utah has also experienced dramatic increases in housing prices over the last several years. Since 2010, we have faced a persistent housing shortage, coupled with increased demand due to economic and population growth. As a result, many areas have seen a double digit increase in the price of homes, year over year, for the last eight years. In 2018, home prices were up 61 percent over their 2010 values in some areas of the state. For homeowners, this has been a boon, but for renters it has strained budgets.
Life Really is Elevated in Utah
For many, retirement in Utah means continuing to stay active and enjoy the outdoors. Utah is home to five national parks, 13 National Park Service units, three national monuments and 43 state parks and recreation areas. Offering world-class mountain biking trails, ample hiking spots and more campsites than you can shake a stick at, our varied landscape has something for everyone within a few hours’ drive.
Let’s not forget about the 10 world-class ski resorts within an hour’s drive of Salt Lake City, including Park City Mountain, North America’s largest ski resort. With five more resorts scattered throughout the state, you cannot go far without coming across some of the world’s best skiing, snowboarding, sledding, or tubing. Of course, if winter sports are not your thing, southern Utah offers mild winter temperatures and hot, dry summers.
A Few Cautions About Retiring in Utah
Retiring here couldn’t be all sunshine and ski slopes, could it? While Utah offers retirees an amazing standard of living, there are also a few things to be aware of if you plan to spend your twilight years here.
The Ponzi Scheme Scene
Utah citizens have a reputation for being a hard-working, honest bunch. Unfortunately, there are still bad actors waiting to take advantage. Sadly, Utah had the 6th most Ponzi schemes of all states and the most per capita between 2008 and 2018. In fact, Utah had more than double the number of Ponzi schemes per capita than Florida, the second-place state. During that period Utahns lost over $1.5 billion to Ponzi schemes, plus another half billion dollars to other types of investment scams. Retirees are an especially vulnerable population as they rely on their nest egg for income. The following rules can help you avoid such scams:
If it sounds too good to be true, it probably is. If someone offers you tremendous growth, with little or no risk, odds are they are either foolish or lying.
Be careful who you trust. Many Utah scams involve affinity fraud – which occurs when a person uses their position of trust to take advantage of you. Just because someone is your neighbor, goes to your church or holds a position of leadership in the community, doesn’t mean you can trust them with your money. Here’s a better way to choose a financial advisor.
Keep your investments at a qualified custodian. Most scams occur when money is “commingled” - meaning you turn your money over directly to your advisor who then combines that money into a single account with other investors. A qualified custodian like TD Ameritrade, Schwab, or Fidelity can protect your accounts from theft.
Taxes
Taxes are a mixed bag in Utah. We are in the middle of the pack in total taxes paid. Property taxes are lower than national averages, but there are other tax laws that are not as favorable. For example, Utah taxes social security, which is bad news for those who rely on this as a primary source of income. However, there is no estate or inheritance tax, making it a favorable spot for retirees with sizeable assets who intend to leave money to heirs.
Conclusion
If you’re planning to retire in Utah, make sure you find a financial advisor you can trust – one who understands the needs of Utah retirees and who will put your interests first.
The Utah Financial Advisor Network was created to help Utah retirees find exactly this type of advisor. Our vetting process removes any advisors who have negative disclosures (such as complaints or lawsuits). In addition, all of our advisors are fee-only (compensated directly by clients) and always act as fiduciaries (meaning we put your interests ahead of our own). Finally, each of our advisors lives and works in Utah. We understand the risks and opportunities that Utah retirees face and can help you navigate a successful retirement in this great state.
Learn how to find the right advisor for you by reading our “Choosing Your Advisor” page. We look forward to helping you plan for and then enjoy your retirement in the great state of Utah!
About the Author
James Sweeney, CFA, CFP®
is a fee-only financial advisor specializing in retirement planning, tax-efficient investing, and high-income professionals. He lives in Lehi, but works virtually with clients throughout the state of Utah.
