The Pros and Cons of Retiring in South Carolina

South Carolina has become an increasingly attractive option for retirees, with over 19% of its population aged 65 or older. a figure that surpasses the national average. The appeal? A warm climate, charming coastal communities and a relatively affordable lifestyle. South Carolina also offers several tax advantages for retirees, including no tax on Social Security benefits and generous deductions on other retirement income. Add in a lower-than-average cost of living and it’s easy to see why so many choose to retire here.

The state is known for its laid-back atmosphere, historic towns and access to outdoor activities year-round – from golf courses to beach walks. Active adult communities are widely available, offering social engagement and resort-style amenities for those seeking a vibrant retirement lifestyle.

That said, it's worth considering a few potential downsides. Humid summers, the risk of hurricanes in coastal areas and limited public transportation in smaller towns can all affect quality of life, depending on your preferences and needs.

Choosing where to retire is a major life decision with long-term financial implications. In this guide, we’ll explore what South Carolina has to offer – from its financial perks to lifestyle considerations – so you can make a retirement plan that fits your vision for the future.

THE PROS OF RETIRING IN SOUTH CAROLINA

Considering the Palmetto State for your retirement? Here's what makes South Carolina an attractive destination for retirees:

1. TAX-FRIENDLY ENVIRONMENT

South Carolina offers several tax advantages for retirees:

• No Tax on Social Security Benefits: Retirees can enjoy their Social Security income without state taxation. ​
• Retirement Income Deductions: Individuals aged 65 and older can deduct up to $10,000 of retirement income from pensions, 401(k)s, IRAs and other retirement accounts. ​
• Low Property Taxes: With an average effective property tax rate of 0.5%, South Carolina ranks among the states with the lowest property taxes. ​
• Homestead Exemption: Homeowners aged 65 and older may qualify for a $50,000 homestead exemption, reducing the taxable value of their primary residence. ​

These tax benefits can help stretch your retirement savings further, especially when compared to higher-tax states.

2. MILD CLIMATE

South Carolina's climate is characterized by:

• Mild Winters: Allowing for comfortable year-round outdoor activities​
• Warm Summers: Ideal for beach outings and water sports​
• Abundant Sunshine: Encouraging an active lifestyle with activities like golfing, fishing and hiking​

Whether you're exploring the Blue Ridge Mountains or relaxing on the coast, the state's climate supports a variety of outdoor pursuits in retirement.

3. VIBRANT RETIREMENT COMMUNITIES

South Carolina is home to numerous 55+ communities designed for active adults:

• Sun City Hilton Head: Offers resort-style amenities, including golf courses, fitness centers and social clubs
• Four Seasons at Carolina Oaks: Provides a tranquil setting with access to beaches and historic sites in Bluffton
• Myrtle Beach Golf & Yacht Club: Combines coastal living with a range of recreational activities

These communities may foster social engagement and provide amenities that cater to diverse interests.

4. ACCESSIBLE HEALTH CARE

Health care is a priority for retirees and South Carolina offers:

• Renowned Medical Centers: These centers include the Medical University of South Carolina, which provides specialized care. ​
• Comprehensive Medicare Options: A variety of state-specific Medicare Advantage and Medigap plans are available, ensuring flexibility in coverage. ​
• Community Health Initiatives: Programs like AccessHealth SC work to improve health care access across the state. ​

These resources contribute to a supportive environment for maintaining health and wellness in retirement.

5. AFFORDABLE LIVING

South Carolina's cost of living is generally lower than the national average:

• Housing Costs: Cities like Greenville offer a cost of living for retirees that is 6.9% below the national average. ​
• Affordable Towns: Places like Walterboro and Anderson provide budget-friendly options for retirees. ​
• Lower Utility and Grocery Costs: This contributes to overall affordability for retirees.​
  

These factors make South Carolina an appealing choice for retirees seeking a balance between quality of life and cost.

THE CONS OF RETIRING IN SOUTH CAROLINA

South Carolina draws many retirees with its charming coastal towns, mild winters and Southern hospitality. But like any potential retirement destination, it has a few trade-offs worth thinking through. From hurricane risks to seasonal humidity, here are a few factors to weigh before packing your bags for the Palmetto State.

1. HUMID SUMMERS AND BUGS GALORE

While South Carolina’s climate is generally mild, the summer months can get sticky. High humidity levels can make even 85°F feel oppressive, and if you’re not used to it, the muggy weather can wear on you. Along with the heat comes an explosion of mosquitoes, fire ants and other pesky critters that thrive in the warm, damp environment.

For retirees who enjoy gardening, walks or simply relaxing on the porch, these conditions can make summer a bit less enjoyable. 

2. HURRICANE AND FLOODING RISKS

South Carolina’s beautiful coastal regions are a big draw for retirees — but they’re also more vulnerable to hurricanes and tropical storms. From June through November, storm season brings the potential for high winds, flooding and property damage, particularly in low-lying or waterfront areas.

Flood insurance is often a must-have in coastal zones, and storm prep is something you’ll need to factor into both your lifestyle and your budget. Even inland towns can feel the effects of heavy rains and swollen rivers.

3. PROPERTY TAXES CAN VARY WIDELY

South Carolina is known for having some of the lowest property taxes in the country — but that’s not always the case across the board. Depending on where you live and the value of your home, your tax bill can still be a noticeable expense, especially in more desirable or fast-growing communities.

It’s also worth noting that while Social Security income isn’t taxed and retirees do receive some deductions on other income, South Carolina does tax most retirement distributions, like from 401ks or pensions, which may affect your overall tax picture.

4. LIMITED HEALTHCARE ACCESS IN RURAL AREAS

South Carolina has several excellent medical centers, especially in cities like Charleston, Columbia and Greenville. But if you’re thinking of settling in a smaller town or rural area, access to specialists and health care services may be more limited. Wait times can be longer and in some areas, you may need to travel to reach the care you need.

As you age, easy access to quality healthcare becomes more important. If you’re planning to retire off the beaten path, make sure you factor in the distance to hospitals, transportation options and availability of in-home support services if needed.

FINAL THOUGHTS ON RETIRING IN SOUTH CAROLINA

With its mild climate, welcoming communities and tax-friendly policies, South Carolina remains a top choice for retirees seeking a comfortable and connected lifestyle. But like any major life decision, retiring in the Palmetto State requires thoughtful planning to ensure your golden years are everything you imagined.

South Carolina may be a great fit for retirees who:

• Want to maximize their retirement income with low property taxes and no tax on Social Security benefits
• Enjoy year-round access to beaches, parks and mild weather
• Are looking for vibrant retirement communities and a slower, more relaxed pace of life

However, it might not be the best choice for:

• Retirees concerned about coastal storm risks or rising insurance premiums in flood-prone areas
• Those looking for extensive public transportation options in smaller towns or rural regions
• Individuals relying heavily on untaxed retirement distributions (like 401ks), which may still be taxed

START PLANNING YOUR RETIREMENT IN SOUTH CAROLINA

Choosing South Carolina for retirement means weighing the benefits – like affordability and climate – against local considerations, such as regional tax policies, access to care and housing availability.

A financial advisor can help retirees:

• Align their lifestyle goals with a personalized retirement income strategy
• Plan for tax efficiency, health care needs and sustainable withdrawals
• Build an investment approach that can support a long-term retirement and peace of mind

Wondering if South Carolina is your perfect retirement destination? Connect with an advisor to start building your personalized plan for a secure future.