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As I get closer to retirement, I’ve been thinking more seriously about the decisions that come with this major life transition, especially as a veteran. Like many of us, my family is spread across the country, from North Carolina, Georgia, New York, Utah, to Texas. With kids in different states and elderly parents in another, choosing where to retire isn’t going to be easy. Our current home is too large to maintain long-term, so we’re looking for something smaller, but with enough space to live comfortably, with at least an acre of land.

Another big factor in this decision is finding a state that’s veteran-friendly offering things like property tax exemptions, access to VA services, and a strong veteran community. Downsizing and retirement are big changes on their own, but veterans also face unique safety and planning considerations that need to be factored in. Whether you’re looking to move to a smaller home, settle into a retirement-friendly area, or relocate for better benefits, it’s important to prioritize physical, financial, and emotional security. This post will cover key factors for veterans to consider before making a move, including location, financial planning, and how retiring after military service can differ from retiring as a veteran years later.

Veteran-Friendly States

When planning for retirement, a major consideration for veterans is whether a state offers meaningful benefits for those who have served. Some states go above and beyond in supporting their veteran communities, offering property tax exemptions, income tax relief on military retirement pay, access to VA facilities, and even hiring preferences for veterans and their spouses. These “veteran-friendly states” can ease financial burdens and provide a better quality of life during retirement.

Texas, Florida, and Virginia are consistently ranked among the best states for veterans. Texas, for example, offers 100% property tax exemptions for disabled veterans with a 100% VA rating, has no state income tax, and boasts a large number of military bases and veteran services. Florida also has no income tax and provides educational benefits and discounted recreational licenses for veterans. Virginia is known for its strong veteran healthcare network and state-level support services. Other honorable mentions include South Carolina, Tennessee, and Arizona — each offering varying degrees of tax advantages, healthcare access, and community support for veterans.

Before you commit to a move, take time to explore what benefits each state offers and how they align with your long-term retirement goals. A little research can go a long way toward maximizing your earned benefits and ensuring peace of mind.

Choosing the Right Location

Once you’ve identified a few veteran-friendly states, the next step is narrowing down the ideal location that fits your lifestyle, needs, and personal preferences. This is where the decision-making gets more personal, it’s not just about benefits anymore, it’s about day-to-day living. Start by creating a list of must-haves and nice-to-haves. Maybe you want to be within driving distance of your kids or aging parents or maybe having at least an acre of land is non-negotiable. You might prefer a low-maintenance condo over a single-family home where you’re responsible for yard work. Also consider whether you’re comfortable living in a subdivision with a homeowners’ association (HOA), as these communities often come with additional rules, fees, and expectations. Factor in housing costs, availability of quality healthcare, walkability, and whether the area is close to a military base or VA medical center.

Don’t overlook safety — both in terms of neighborhood crime and overall emergency readiness. Look into crime statistics using tools like CrimeMapping.com or your local police department’s website. Prioritize well-lit streets, nearby emergency services, and access to reliable transportation. Also consider community reputation and whether there’s a strong veteran presence nearby. Areas with active veteran communities can offer camaraderie, peer support, and easier access to local resources.

Choosing the right location isn’t just about geography it’s about setting yourself up for a safe, comfortable, and rewarding retirement.

Retiring from Military Service vs. Retiring Years After Service

Not all veterans retire the same way. Some transition directly from military service into retirement, while others serve their time, enter the civilian workforce, and retire years later. Each path comes with different planning considerations especially when it comes to timing, benefits, and financial readiness.

When you retire directly from the military, you’re eligible for benefits such as a military pension, healthcare through TRICARE, and sometimes relocation assistance. The military often covers final move expenses, which can significantly reduce the financial burden of relocating to your chosen retirement destination. That coverage can free up savings and give you more flexibility when selecting a home or a state with better veteran benefits.

On the other hand, veterans who leave the military and retire years later from civilian careers don’t typically receive those same relocation benefits. All moving costs come out of pocket, which makes financial preparation even more critical. If you’re in this category, it’s important to plan ahead to make sure your savings are strong enough to cover moving expenses, down payments, or unexpected costs during the transition. You’ll also want to think carefully about healthcare coverage, since options may differ from those available to recent retirees.

No matter what your path, it’s smart to begin retirement planning early—this may mean while you’re still on active duty. Understanding whether you’ll be covering major expenses like relocation out of pocket, or if military benefits will help offset those costs, can heavily influence where and how you choose to retire. This becomes even more important when weighing the cost of living and evaluating veteran-friendly states.

Financial Considerations for Veterans Planning Retirement

When it comes to retiring and downsizing, financial planning plays a major role, especially for veterans. Unlike many civilians, veterans may face unique circumstances such as navigating VA benefits, relocating without military-funded support, or dealing with service-connected health issues that could impact their budget over time. These factors make it even more important to approach retirement with a clear, well-prepared financial strategy.

Start by evaluating your current financial situation. Are there debts you can pay off before retiring? Eliminating high-interest credit cards or personal loans can reduce monthly obligations—critical when you’re transitioning to a fixed income. If you’re still employed, focus on building a strong savings cushion. Unexpected home repairs, medical needs, or relocation expenses can add up quickly, and having that buffer can provide peace of mind.

Avoid rushing into large purchases just before or during retirement. Whether it’s a new car, RV, or extensive home upgrades, ask yourself if it’s truly necessary. It’s tempting to spend more when anticipating newfound freedom but staying financially grounded helps ensure long-term stability.

Don’t forget to factor in property taxes, homeowners’ insurance, and the overall cost of living in the area you’re considering. Some veteran-friendly states offer generous tax breaks or benefits that can reduce financial strain, but those advantages vary widely. Take the time to research and compare—those savings could significantly impact your monthly budget.

If you’re thinking about working part-time or doing contract work during retirement, make sure you understand how that income could affect your VA disability or pension benefits. Meeting with a financial advisor who understands veteran-specific issues is a smart move. They can help you plan in a way that preserves both your financial health and your earned benefits.

Safety and Peace of Mind When Downsizing or Relocating

As you transition into retirement, your personal safety and overall peace of mind should be part of the decision-making process. Whether you’re moving to a smaller home, a retirement-friendly community, or a completely new state, taking the time to assess physical safety and emotional well-being is critical—especially for veterans who may be managing service-connected disabilities or long-term health conditions.

Start by evaluating the neighborhood. Look into local crime rates, proximity to law enforcement and emergency services, and whether the area has well-lit streets and walkable sidewalks. Living in a community with a low crime rate not only offers physical safety, but also helps reduce daily stress and anxiety. Tools like local police department websites or apps like CrimeMapping.com can provide useful data to help guide your decision.

Peace of mind also comes from knowing you’re connected to supportive services. Being near a VA hospital, military base, or active veteran community can make a big difference in your quality of life. Access to healthcare, veteran support groups, and like-minded neighbors creates a network that’s both comforting and practical. These resources can be especially valuable if you face mobility limitations, need regular medical care, or simply appreciate a sense of camaraderie.

And don’t overlook home safety features. As you shop for a downsized home or retirement property, consider things like single-story layouts, wider doorways, non-slip flooring, and smart home technology that add convenience and security. These thoughtful upgrades can make aging in place easier and reduce long-term stress.

Final Thought

Veteran retirement planning isn’t just about where to live—it’s about how you want to live. As veterans, we carry a unique set of experiences, responsibilities, and needs into retirement. Choosing the right place to settle down means more than a lower mortgage or smaller yard. It means access to quality VA healthcare, strong community support, and financial relief through veteran benefits like property tax exemptions.

Relocating or downsizing can bring real peace of mind, but only if it’s done with intention. Think beyond the real estate listings. Evaluate states based on veteran-friendly policies, safety, long-term cost of living, and your proximity to the people and services that matter most. Don’t overlook the importance of accessibility, especially if mobility or health concerns are part of your future planning.

Talk to other veterans who’ve made the move. Visit potential areas. Look at your finances with a clear eye—consider what you’ll save, what you’ll gain, and what you’re willing to trade for a better quality of life.

You’ve served your time, now it’s time to plan for your future.  Use those skills you learned during your time in the military to stay focused and committed. Make your next move count—not just for convenience, but for comfort, connection, and long-term stability.

Take action now. Start researching veteran-friendly states using the VA State Benefits Directory, review your VA home loan eligibility, and make decisions that protect your health, finances, and peace of mind.

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