4 Benefits of Retiring in Kentucky

While perhaps not a commonly thought-of retirement destination, Kentucky offers many benefits to retirees. Major benefits include free college tuition, food and transportation programs for seniors, a low cost of living, and reasonable tax rates.

Here are details on all four types of benefits of retiring in Kentucky:

1. Free college tuition

For retirees looking to keep their minds active or continue their education, there are two kinds of free college tuition programs for retirees in Kentucky. Residents, 65 or older, can get a waiver or all tuitions and frees at any state-supported institution of higher learning in Kentucky.

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Moreover, free tuition is available to students of all ages at two private colleges, Berea College and Alice Lloyd College.

Students at Berea College in Central Kentucky pay no tuition but must take part in the Student Labor Program. All full-time students are required to work at least 10 hours per week on campus, but they can receive additional low wages ($4.65 to $6.80 per hour) for their work, according to U.S. News & World Report.

Alice Lloyd College in Eastern Kentucky also offers free tuition, but only to full-time students from one of the 180 counties in the Central Appalachian service area. Located in Pippa Passes, Kentucky, the college serves districts in Kentucky, Ohio, Virginia, West Virginia, and Tennessee.

2. Free food, transportation, and social programs for seniors

A variety of free nutritional, transportation, and social programs are available to seniors throughout Kentucky.

For instance, Senior Services of Northern Kentucky offers free or highly affordable meals on wheels, free food banks, free or low-cost transportation, and 10 senior activity centers featuring recreational activities, computer access, midday meals, and courses in financial literacy.

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3. Low cost of living

Kentucky's living costs are 12 percent lower than the national average, according to Sperling's Best Places.

Prices are particularly low on food, utilities, home purchases, and rentals. Housing prices, in fact, were as much as 25 percent lower than the national average.

4. Reasonable tax rates

Kentucky ranks as the fourth lowest state for property taxes on a per capita basis. It's also the 14th lowest for property taxes in terms of percentage of home value. In addition, under a homestead provision, homeowners who are age 65 and older or completely disabled receive a $34,000 exemption on the assessed values of their homes.

Real estate is also subject to local property taxes.

Kentucky, however, is also very generous with state income tax exemptions and deductions.

The state offers total exemptions for Social Security and railroad retirement benefits as well as for Roth individual retirement account distributions. Taxpayers can also exclude up to $41,100 from government pensions and qualified private pensions, according to the Retirement Living Information Center.

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