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Connecticut’s Retirement Nightmare

March 10, 2017 By Staff
Connecticut’s Retirement Nightmare

Some have argued that Connecticut's retirement problem is symptomatic of a larger issue.

Members of the Greenwich delegation in Connecticut’s legislature have highlight Connecticut’s retirement nightmare in a new op-ed for Greenwich Time:

It is no surprise that accountants have been telling clients for years that Connecticut is not only a bad place in which to retire, but also a bad place in which to die. The statistics showing Connecticut at the wrong end of the spectrum when it comes to out migration should be a clarion call to all that we must reverse course now and stop repeating mistakes with the same old “tax-and-spend” philosophy that brought us to this situation in the first place.

High taxes, slow growth, and a rising cost of living have made the state difficult for retirement in comparison to lower-cost states:

Connecticut tax rates top off at 6.7% for incomes of $250,000 and up, and the state is one of just 14 that tax Social Security income, with exemptions based on adjusted gross income. Pension income also is often taxable.

Stories of people leaving Connecticut because of the high cost of living, and increasing taxes, are common.

The decision to leave, and the timing to do so, were not made lightly or without considerable deliberation. My reason for leaving had to do primarily with the cost of living.

The state’s loss of retirees is also a big tax problem. Accountants are telling clients that a critical part retirement-planning is leaving Connecticut:

After speaking with the attorney and accountant, one thing became abundantly clear. As residents of Connecticut, if we want to have more money in retirement, and keep that money and maybe even have money left over for our kids when we go to that “Spirit in the Sky”, leaving Connecticut is kind of critical.

Some have argued that Connecticut’s retirement problem is symptomatic of a larger issue, the failure of Connecticut’s “blue state model” of government.