Hawaii is the dream retirement destination for many people, majorly because of the warm weather year-round and stunning scenery. But as attractive as the islands may seem, many retirees who once planned to spend their golden years here are now making the difficult decision to leave.
GOBankingRates spoke to Corinne Smith, a real estate agent who was born and raised in Hawaii and is the founder of Legacy Homes, who shared common reasons many retirees are leaving the state.
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High Cost of Living
Hawaii’s cost of living is among the highest in the country. For retirees on a fixed income, stretching dollars in Hawaii is much harder than in other states.
“Hawaii is very expensive. The cost of living is high, and food is imported if not grown, which makes it expensive,” said Smith.
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Rising Home Prices and Scarcity
Housing affordability is another major challenge. Hawaii’s real estate market is known for limited supply, which pushes prices higher year after year. Even retirees who purchased property years ago are finding it difficult to downsize.
“Home prices continue to rise and will always rise because of scarcity, making affordability a big issue,” she said. “If you live in a care home, it is extremely expensive to maintain.”
High Taxes
Hawaii also carries one of the highest state income tax rates in the nation. “Taxes are one of the highest in the world with the highest income state tax and no true Social Security benefits,” Smith added.
While Social Security income is exempt from state taxes, the lack of broader benefits and steep tax rates makes it harder for retirees to stretch their savings.
The Challenge of Distance and Travel
Additionally, Hawaii’s remote location can make retirees feel cut off from family and friends. Flight costs to visit mainland family members can easily run thousands of dollars and often require multiple connections, which can be exhausting for retirees.
“With Hawaii being so remote, prices to travel to and from Hawaii are extremely expensive and that’s just for the flights,” she said. “You will likely need to catch several planes until you reach your destination […] just to visit family.”
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This article originally appeared on GOBankingRates.com: I’m a Hawaii Real Estate Agent: 5 Reasons My Retired Clients Are Leaving the State
