If you’re approaching retirement and call Pennsylvania home, or are considering it, chances are you’ve been keeping an eye on the rising cost of living. Maybe you’ve even Googled questions like “Is Pennsylvania affordable to retire in?” or “How much do I need to live comfortably here?”
You’re not alone. These are some of the most searched financial concerns in the state right now and for good reasons.
Pennsylvania: Still Affordable, But Changing Fast
Pennsylvania has long been considered a relatively affordable place to live, especially when compared to coastal states. It still offers advantages, like more affordable housing in many areas and tax-friendly policies for retirees (for example, Social Security income isn’t taxed, and most retirement account withdrawals are exempt, too).
But that doesn’t mean it’s immune to the same pressures affecting the rest of the country. Essential costs like groceries, healthcare, utilities, and transportation have quietly crept up over the past few years. These everyday expenses are growing faster than the general rate of inflation, and that can catch even the most well-prepared retirees off guard.
Why Pre-Retirees Are Feeling the Shift
If you’ve been following a long-term financial plan, chances are you’ve done the “right things”: saved diligently, minimized debt, and mapped out your income streams for retirement. But the rising cost of essentials is prompting many pre-retirees to revisit those plans.
A few factors are creating pressure:
- Rent and housing costs are higher than they were just a few years ago, even in smaller towns.
- Utilities and healthcare are becoming more expensive, especially for older adults with growing medical needs.
- Day-to-day living like food, fuel, and services may be costing more than your original budget accounted for.
It doesn’t mean your plan is off-track, it just means it might be time for a check-in.
Location Still Matters
Not all areas of Pennsylvania are created equal when it comes to affordability. Some smaller towns still offer great value for retirees, with lower housing costs, slower-paced living, and access to quality healthcare. If you’ve always imagined staying where you are, great, but it may also be worth exploring areas that could help stretch your retirement dollars further.
Popular low-cost towns continue to attract retirees for good reasons. They offer more manageable monthly expenses without sacrificing lifestyle.
What You Can Do Now
If retirement is on the horizon, consider these simple steps to help stay ahead of rising costs:
- Review your retirement income plan with today’s prices in mind, not what things cost five years ago.
- Update your spending assumptions for essentials like healthcare and utilities, which are likely to keep rising.
- Explore your location options, even if you’re not planning to move. Knowing where your dollars go furthest gives you more flexibility.
- Talk with your advisor (or find one you trust!) to make sure your financial plan reflects today’s cost of living realities.
Retiring in Pennsylvania can still be a smart move but being proactive about the rising cost of living is key. With a few thoughtful adjustments, your long-term plan can stay strong and supportive of the retirement lifestyle you’ve worked hard to build.
