A while back a reader suggested the reason military retirees don't all move back to Minnesota is because of state income tax on their retirement benefits. While this may be true for some retirees, I would suggest other reasons.
Some retirees don't stay in Minnesota because of the climate. Witness the number of older folks who move to the Sunbelt (or go there for part of the winter). Military retirees are no different.
Often retirees prefer to stay at their last duty station. Why? They have purchased homes, have kids in school, their spouses have local jobs and the family has integrated into the community.
Sometimes retirees go straight from uniformed to civilian employment, either as WG/GS or contractor, at their last duty station.
Being close to other military retirees is also an attracting factor. After being in the military culture for 20-plus years, many would prefer staying near folks of similar mind and background; that's usually around a military installation.
ADVERTISEMENT
Lastly, closeness to facilities is important to many retirees: PX/BX, hospital, medical/dental facilities, commissary, etc., are open to retirees (although some care can be 'space available').
The people who move 'home' after retiring, do so simply because it is home, and that's where their extended families and 'roots' are.
I would suggest to any service member considering retirement to look not only at the total tax picture, but also consider the quality of life in the state and the fairness of the tax code.
Bruce Decheine
Pillager
