The Complete Guide to Retiring in New Jersey
Written by Jordan McElwain — Updated: Wednesday, October 2, 2024
Learn about retirement in New Jersey, from taxes and income to lifestyle choices
New Jersey is one of the most centrally located states on the East Coast. Close to New York City, Philadelphia, Baltimore, and Washington, DC, making travel easier. With easy access to several large cities, it’s not surprising that New Jersey is a popular place to retire to. New Jersey is also home to the Jersey Shore, which is filled with beaches. Finally, in a recent report, New Jersey is shown to have a relatively low risk for natural disasters.
If you’re considering retiring in New Jersey, this guide will help you understand the pros and cons. We’ll cover things like retirement taxes, retirement communities, the climate, and housing costs to help you determine if New Jersey retirement is right for you.
Quick facts about New Jersey’s retirement landscape
17% of the New Jersey population is 65 or older.
The average retirement age in New Jersey is 65.
New Jersey has 355 retirement communities.
New Jersey is close to many large cities and home to its own large attractions, like Atlantic City.
New Jersey’s climate is relatively mild.
Like many coastal, northeastern states, the cost of living in New Jersey is relatively high compared to the rest of the US.
Social Security income is not taxed in New Jersey, but other forms of retirement income are.
Pros and cons of retiring in New Jersey
Retiring in New Jersey is good for people who want to be able to travel to major cities, like coastal living, and prefer a mild climate that still has all four seasons. Take a look at the pros and cons below to see if New Jersey retirement is right for you.
Pros
New Jersey is located in the middle of the east coast and close to many large cities.
It’s easy to enjoy the outdoors with 12 state parks and a number of beaches.
The climate is more mild than many other east coast states, with fewer effects from hurricanes than states further south and much warmer winters than states further north.
Cons
The cost of living in New Jersey is higher than the US average.
The state is densely populated and, therefore, has high levels of traffic.
Certain cities, like Atlantic City, have a higher-than-average risk of flooding.
Retirement taxes in New Jersey
Social security payments are not taxed in New Jersey, nor are railroad benefits. All other forms of retirement income are taxed. One exception is any pension payments you receive before you turn 65 due to having a disability are not taxed. (Pensions for disability are taxed once you reach 65.)
New Jersey has a graduated income tax, which means you pay higher taxes for income that falls into higher income brackets. There are seven brackets for single filers and eight for couples. The lowest bracket is for income under $20,000. All income below $20,000 is taxed at 1.4%. The highest bracket is for income over $1,000,000, which is taxed at 10.75%.
Retirement communities in New Jersey
New Jersey has 355 retirement communities. Because New Jersey is a relatively small state, no matter which community you look at will be close to a city. If you are attracted to a particular outdoor activity in New Jersey, you should pick a community close to that activity. For example, if you enjoy beaches, you should pick a community that’s closer to the shore. Otherwise, you can pay attention to things like your budget and the services each community offers to find the right place to live your golden years.
Popular cities to retire to in New Jersey
Retirees choose where to live based on a number of personal preferences, including cost of living, climate, proximity to water, and convenience. Below are some of the cities that are more popular among retirees:
Montclair is popular because it’s close to New York City and has several outdoor recreation areas.
Atlantic City is a well-known vacation destination with housing costs that are lower than the state average.
Princeton, like many college towns, is home to a variety of restaurants and shops as well as recreation centered around the college.
Climate and outdoor recreation in New Jersey
New Jersey’s climate is variable. Warm and humid summers contrast to cold and moderately snowy winters. Northern parts of the state tend to be the coldest. The southern, coastal areas have the most consistent weather.
Residents can enjoy a variety of outdoor activities in New Jersey. The state is home to twelve state parks that offer camping and hiking opportunities. The long Jersey Shore has plenty of space to enjoy swimming, sailing, and fishing. In the winter, many residents and visitors enjoy snowboarding, skiing, and ice skating.
Housing and cost of living in New Jersey
The cost of living in New Jersey is 11% higher than the national average. Every living expense, besides healthcare, is higher than the national average. Housing has the highest difference, with the cost of buying or renting being 30% higher in New Jersey than the national average. Utility costs are also high and 10% higher than the national average.
The sales tax rate in New Jersey is 6.625%. Some items, like food, clothing, and medication are not taxed.
With costs being 30% higher than the national average, housing in New Jersey can be expensive. The average home in New Jersey goes for $466,281, which is more than the national average of $362,481. Property taxes are also relatively high. Tax rates vary between counties, but NJ’s average property tax rate is 2.26%.
Resources for seniors in New Jersey
The Division of Aging Services provides services for seniors in New Jersey. The NJSave program gives seniors assistance with prescriptions and general living expenses. Other important resources it provides include:
Grants intended for seniors
Caregiver assistance
Information about local councils on aging
Utility bill assistance
Below are some additional resources to support older adults in New Jersey:
NJTransit has a reduced fare program for seniors to make getting around easier and more affordable.
Meals on Wheels delivers meals to New Jersey residents.
The Aging and Disability Resource Connection provides a list of senior community centers.
The New Jersey Comfort Partners Program helps eligible seniors reduce their utility bills by implementing energy-saving measures that also improve homes’ safety and comfort levels.
Chapter Medicare agents provide free Medicare advice and support to help you get the best value from your Medicare.
Quality of healthcare in New Jersey
The United Healthcare Foundation rates New Jersey 21st out of the 50 states for the overall health of seniors. There are also many quality hospitals in the state, two of which made Healthgrades’ list of the 50 best hospitals in the United States. Morristown Medical Center won awards for coronary and cardiac care, vascular surgery, orthopedic surgery, and joint replacement. Overlook Medical Center was honored for stroke care, pulmonary care, critical care, and neurosurgery.
Medicare in New Jersey
Georgia has 1.7 million people on Medicare. Like all Medicare beneficiaries, NJ residents have options. 45% are enrolled in one of 82 New Jersey Medicare Advantage plans. The other 55% are on Original Medicare. People who stay on Original Medicare also have the option to enroll in a Medicare Supplement plan and a Part D plan.
Below are some resources to help you determine when to enroll in Medicare and which coverage is best for your unique needs.
Retiring in New Jersey
After reading all of the above, you may come to the conclusion that New Jersey would be a perfect place for you to retire. If you’re interested in a New Jersey retirement, test it out! We recommend visiting the state to see the specific areas you’re considering to live out your golden years. Make sure all of the amenities you’re hoping for are what you’re expecting before making the leap!