The Pros and Cons of Retiring in New York

New York may not be the first place that comes to mind when you picture retirement, but for the right person, it offers a rich, rewarding lifestyle that’s tough to beat. From vibrant cities and charming small towns to scenic lakes and mountains, the Empire State has something for nearly every kind of retiree.

That said, retiring in New York isn’t for everyone. High taxes and the cost of living in some areas can be a concern and winter weather is no joke. Still, many retirees find that the cultural access, natural beauty and excellent health care more than make up for the challenges.

In this guide, we’ll walk you through the pros and cons of retiring in New York to help you determine whether it’s the right fit for your retirement goals.

THE PROS OF RETIRING IN NEW YORK

DIVERSE LIFESTYLES AND LOCATIONS TO CHOOSE FROM

New York is more than just New York City. Retirees can choose from a wide range of lifestyles:

• The Hudson Valley offers small-town charm, historic architecture and proximity to the city
• The Finger Lakes region is beloved for its wineries, outdoor recreation and peaceful pace
• Western and Upstate New York feature affordable towns, lakeside communities and easy access to nature
• Long Island blends coastal living with cultural access and suburban conveniences

Whether you prefer the bustle of a walkable city or the quiet of a lakeside home, New York has a region sure to fit your pace.

WORLD-CLASS HEALTH CARE

New York is home to some of the best health care institutions in the country. Retirees can benefit from:

• Top-ranked hospitals like NewYork-Presbyterian, Mount Sinai and Northwell Health
• A deep pool of specialists and geriatric care providers, especially in and around NYC and major cities
• A strong infrastructure for home health care and aging-in-place support in many regions

For retirees with ongoing health needs or those who want access to top-tier care as they age, New York often delivers.

CULTURE, ENTERTAINMENT AND EDUCATION AT YOUR FINGERTIPS

From Broadway shows and world-class museums to local art festivals and historic landmarks, New York offers an unmatched cultural scene. Retirees can also tap into:

• Lifelong learning opportunities through local colleges and universities
• Lectures, community classes and cultural events across the state
• Dining and shopping experiences that range from upscale to down-to-earth

For those who want to stay intellectually and socially engaged throughout their retirement years, New York is a playground.

PUBLIC TRANSPORTATION AND TRAVEL ACCESS

Retirees who don’t want to rely on a car will find New York surprisingly accessible:

• Public transit is widely available in urban areas like New York City, Albany, Rochester and Buffalo
• Amtrak and regional rail lines connect many parts of the state and enable access to other parts of the country
• Major airports, including JFK, LaGuardia and Albany International, offer travel flexibility

This makes it easier to explore, visit family or get where you need to go without the stress of long drives.

SOME TAX RELIEF FOR RETIREES

New York has a reputation for high taxes, but there are a few key benefits for retirees:

• Social Security benefits are not taxed at the state level
• Pensions paid by NY state or local government, the federal government or certain authorities are not taxed at the state level
• Up to $20,000 per year in retirement income from private pensions and IRAs can be excluded for residents over 59½
• Property tax relief programs that reduce the taxable assessment of a senior’s home up to 50% are available for eligible seniors
  

While New York isn’t the most tax-friendly state, these exemptions can help offset the burden,  especially for moderate-income retirees.

THE CONS OF RETIRING IN NEW YORK

A HIGH COST OF LIVING IN MANY AREAS

New York’s affordability varies drastically:

• New York City and Long Island are among the most expensive places to live in the U.S.
• Property taxes are some of the highest in the country, particularly in the suburbs
• Groceries, utilities and general expenses tend to exceed national averages in urban areas
• The median listing home price in New York City was approximately $868,000 in May 2025, reflecting a 3.6% year-over-year increase

However, many upstate and western areas – like Binghamton, Syracuse and the Adirondack region – offer much more affordable living.

CHALLENGING WINTERS

Retirees who dream of sunny, snow-free winters may find New York’s climate a dealbreaker:

• Snowfall is common and often heavy, especially in areas near the Great Lakes
• Winters can be long, gray and icy, making travel and outdoor activities more difficult
• Heating costs and winter gear can add up quickly

That said, if you enjoy seasonal changes or winter sports, you may welcome the snowy months New York has to offer.

STATE AND LOCAL TAX BURDEN

Despite some retiree-friendly deductions, New York remains one of the highest-taxed states overall:

• State income tax rates range from 4% to over 10% for extremely high earners⁴
• Local income taxes apply in certain areas, including New York City
• High property taxes can eat into fixed incomes, especially for homeowners without exemptions
• New York taxes capital gains as ordinary income – meaning they are subject to the state’s progressive income tax rates.

Careful planning can help mitigate these costs, but taxes are a serious consideration for any retiree here.

TRAFFIC AND URBAN DENSITY IN CERTAIN AREAS

If you’re considering retiring in or near New York City, be prepared for:

• Traffic congestion, crowded transit and high noise levels
• Parking challenges and high transportation costs
• Rapid pace of life that may feel overwhelming to some retirees

Quieter suburbs or rural areas can provide relief, but often at the expense of proximity to certain amenities.

IS NEW YORK RIGHT FOR YOUR RETIREMENT?

New York isn’t a one-size-fits-all retirement destination. But for many retirees, it strikes a balance between culture, access and comfort, especially for those with family nearby or strong ties to the region.

You may find New York to be a great fit if you:

• Value proximity to world-class health care and cultural amenities
• Want to stay engaged through education, arts and travel
• Enjoy four seasons and don't mind winter weather
• Prefer to be near East Coast family and transportation hubs

However, if low taxes and mild winters are at the top of your list, you may want to explore other popular retirement destinations such as Florida, Arizona or Tennessee.

RETIRE SMART – WHEREVER YOU LAND

At Edelman Financial Engines, we help clients across the country create personalized retirement plans that fit their goals, lifestyle and location – whether that’s staying close to home or making a bold move somewhere new.

If you're weighing the pros and cons of retiring in New York or anywhere else, an experienced advisor can help you make sense of the numbers, navigate taxes and build a strategy designed to support your ideal future.