By Tom Golonka- SilverLake Financial
As a fellow Vermonter, I know how special it is to call this state home. From the quiet strength of the Green Mountains to the close-knit communities in our towns, Vermont offers something unique. But when it comes to retirement, deciding whether to stay or move isn’t just financial—it’s deeply personal.
That said, your financial life still plays a big role. A strong retirement plan isn’t just about savings—it’s about where and how you want to live, and how your resources support that vision.
Here are some key areas to consider as you plan your next chapter.
Vermont Taxes: Think Holistically
Yes, Vermont taxes most retirement income, including Social Security (though lower-income retirees may get partial exemptions). That alone pushes some to consider relocating to states like Florida or New Hampshire, where retirement income isn’t taxed.
But don’t look at income tax in isolation. Many low-tax states offset savings with higher sales taxes and auto and home insurance costs. Vermont’s sales tax is moderate, and in many towns, real estate remains more affordable than in popular retirement markets.
The goal is to assess your full financial picture. What are your fixed expenses? How will they change in retirement? Taxes matter—but so do healthcare, community, and lifestyle.
Do Your Savings Support Your Lifestyle?
Every retirement looks different. Some dream of travel or wintering in warmer climates. Others are happy staying close to family or enjoying Vermont’s outdoors year-round.
Whatever your goals, your income—Social Security, pensions, retirement accounts—needs to match. Don’t overlook lifestyle costs like home maintenance, heating, or seasonal hobbies. If you’re considering a second home or moving, compare living costs carefully.
Planning for inflation, healthcare, and long-term needs can help avoid surprises later.
Make Your Home Work for the Years Ahead
Vermont homes are full of charm—but many weren’t built for aging in place. Narrow stairs, small bathrooms, and steep driveways can become problems over time.
Now’s the time to assess: Can your home be adapted? Simple changes like first-floor bedrooms or bathroom upgrades can go a long way. For others, downsizing to a smaller, more accessible home may be smarter and more cost-effective.
Selling a larger home may also free up equity for other priorities in retirement.
Selling Your Home? Know the Tax Angle
If selling is part of your plan, be sure to consider capital gains. The IRS allows most homeowners to exclude up to $250,000 ($500,000 for married couples) of gain on the sale of a primary home, assuming you meet basic requirements.
Still, some gains may be taxable, depending on your home’s appreciation. A tax advisor can help you understand timing, your cost basis, and any strategies to reduce the impact.
Don’t Overlook Long-Term Care
Long-term care is often underestimated—and expensive. Medicare covers little, and whether it’s in-home care or assisted living, costs can add up fast.
Vermont has strong community resources, but relying on them alone isn’t a full plan. Explore whether long-term care insurance, hybrid life policies, or earmarked savings fit into your broader strategy.
And talk with loved ones. Clear preferences reduce stress down the road—for you and them.
At the Core: What Really Matters?
Ultimately, retirement is about more than finances. For some, a lower-tax state and warmer climate is the right move. For others, Vermont’s lifestyle—its trails, values, and sense of place—is worth every extra dollar.
Like many others, I have chosen to live in Vermont. SilverLake Wealth Management has also kept our company roots in Vermont, enabling us to provide jobs and services to others who remain in Catamount country while also serving others in 40 States. Some things are not all about dollars and cents
There’s no right answer—just what’s right for you.
Tom Golonka is a CFA charterholder as well as a CERTIFIED FINANCIAL PLANNER practitioner. He currently is the Chair of the Vermont Pension Investment Committee (VPIC) and Trustee of the University of Vermont Health Network Board.
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