If you have never considered Philadelphia as a place to retire, it might be time to sit up and take notice of all this city has to offer. Ranking at No. 13 in the U.S. News & World Report 2024 list of best places to retire, the City of Brotherly Love offers big-city amenities on a more manageable scale than the largest metropolitan areas in the country, and it’s near some of the best attractions in the Mid-Atlantic region.
Before you can realistically answer the “should I move to Philadelphia?” question, it makes sense to consider the major pros and cons, seasonal weather, taxes, and other important factors. You can then compare this information to other locales and make an informed decision before you start scouting out the active adult communities in the area.
Retiring in Philadelphia: Pros and Cons
Comparing the pros and cons of living in Philadelphia is a great way to decide if it’s the right city for you to spend your golden years. While there are many reasons for retirees to flock to the City of Brotherly Love, there are a few drawbacks to consider.
Pros
- Cost of living: Philly’s cost of living is much lower than that of other major East Coast cities, such as New York and Boston. Like the rest of the country, real estate prices have gone up here, but the average price of a home in Philadelphia is around $275k, which is comfortably lower than the national average of $405k. Also, according to 55places.com data, the average list price of a home in a 55+ community in the Philadelphia area is $518,585.
- Location: Philadelphia is close to New York City, Washington D.C., and right over the bridge from New Jersey beaches. Traveling in and out of the city is easy thanks to the excellent public transportation system and proximity to Philadelphia International Airport.
- Entertainment: Besides historical attractions like Independence Hall and the Philadelphia Museum of Art, diverse cultural opportunities abound in Philly. A few examples are South Street, Chinatown, Fairmount Park, the Please Touch Museum (your grandchildren will love this place), and restaurants for every taste and price range.
- Excellent health care: Philadelphia is home to some of the highest-rated medical facilities in the state, including Penn Presbyterian and Jefferson Health. Like other major providers throughout the country, though, you will need to make appointments with the top physicians well in advance.
Cons
- A little crowded: Philadelphia’s population is currently at around 1.6 million, and large cities like this come with crowded streets, one-way streets, and plenty of traffic. Parking can be tough, but residents and travelers make use of parking garages, public transportation, and rideshare services.
- Cold winters and hot summers: Philly winters can be quite cold, and you can expect snow and ice in the winter. January is generally the coldest month of the year here. The streets empty out on summer weekends when residents travel to the Pocono Mountains, NJ beaches, and other cooler vacation spots.
- Specific liquor laws: There are some strange liquor laws in the city and the state of Pennsylvania. Many restaurants are BYO for this reason. You can only buy wine and liquor in state-owned Wine and Spirits stores, and beer is sold in delis and distributors in the city.
Philadelphia Climate
Throughout any given year, the temperatures in Philadelphia vary from about 26 to 87 degrees. The winters get pretty cold, and there can be a handful of heavy snowfalls.
The best time for warm-weather activities is early June through late September. An average summer temperature in Center City might be around 85 degrees, and the spring and summer months can be quite lovely. Some of the best outdoor activities in the area can be found at the Schuylkill River Trail, the Delaware River Waterfront, and Wissahickon Valley Park.
Philadelphia Taxes
While Pennsylvania is known to be tax-friendly for retirees, Philadelphia has a high city wage tax for workers. But this isn’t a concern for retirees and people who are employed elsewhere.
The combined minimum sales tax rate in Philadelphia is 8%, including city, county, and state sales tax rates. The state income tax is currently 3.07%, and local real estate and federal retirement income taxes can also affect your cost of living in PA.
Philadelphia Property Taxes
Pennsylvania’s property tax rates vary by county and overall exceed the national average. The median effective tax rate in the state is 1.18%. Rates in Philadelphia are slightly higher at 1.39%, a comfortably low rate in comparison to the Delaware County average of 1.72%. At these rates, residents can expect to pay around $2,800 annually for a home valued at $200,000.
Philadelphia Retirement Income Taxes
Pennsylvania is known as a tax-friendly retirement state—that 3.07% flat tax rate is the lowest in the entire country. As for retirement income taxes, no one can escape paying what is owed to the federal government, but state Social Security income is not taxed. Public and private pension income, as well as withdrawals from retirement accounts, are also not taxed.
Pennsylvania Tax Exemptions for Seniors
Pennsylvania’s property tax/rent rebate program benefits eligible state residents 65 and up, people with disabilities ages 18 and older, and widows/widowers ages 50 and up, but income caps apply ($48,110 a year for homeowners). All homeowners are eligible for a homestead exemption that exempts $100,000 from the assessed value of their property for property tax purposes. This saves most homeowners about $1,399 a year on property taxes.
Another rebate is offered for federal Civil Service Retirement benefit recipients, allowing them to exclude 50% of their yearly Social Security benefits. Veterans who receive state veterans’ payments can exclude all of those.
Philadelphia Health Care
The state of Pennsylvania’s largest health systems include Thomas Jefferson University and Penn Medicine (University of Pennsylvania Health System). In addition to the medical centers mentioned above, the region has many other top-performing medical centers. Some of these include Fox Chase Cancer Center and Mainline Health Lankenau Medical Center.
You can also drive to New Jersey for the award-winning MD Anderson Cancer Center in Camden.
Where to Live in Philadelphia
If you want to live right in the heart of the city, you won’t find any large 55+ properties with hundreds of single-family homes. Instead, you can choose from modern condo communities, and you might not even need a car to get around if it is close to public transportation. The great majority of larger active communities fan out around the city.
Bucks County
Located 25 miles north of Philly, Bucks County offers old-fashioned charm. It has towns that retirees love to explore, and it’s prized for its scenic natural beauty. Some of the best places to live in Bucks County are Warrington, New Hope, and Bensalem.
Bucks County has a slower pace of life. It’s away from the busy city, but you have all the modern conveniences that you need. The indoor and outdoor activities will keep you busy year-round, and if you want to get into the city, it’s a piece of cake.
One of Bucks County’s most historic attractions is Washington’s Crossing, a gorgeous park where George Washington crossed the Delaware. There are trails, restaurants, wineries, and other attractions here. Other activities include the Bucks County Playhouse, Peddler’s Village, and Bowman’s Hill Wildflower Preserve.
55+ Communities in Bucks County
Bensalem
Bristol
Doylestown
Fairless Hills
Fallsington
Holland
Langhorne
Levittown
New Hope
Newtown
Quakertown
Richboro
Sellersville
Southampton
Warminster
Warrington
- Barclay Hill
- Bluestone Creek
- Forest Ridge
- Lamplighter Village
- Legacy Oaks at Warrington
- Meridian of Valley Square
- The Preserve at Lamplighter
Warrington
Washington Crossing
Yardley
Montgomery County
Montgomery County is about 30 minutes northwest of Philadelphia, and its southwest border butts up to the Schuylkill River. Some of its largest cities are King of Prussia, Lansdale, and Willow Grove, and two of its biggest landmarks are Valley Forge National Park and the King of Prussia Mall.
This is suburban living at its best, and residents enjoy the peace and quiet. Living here means that you will have access to exciting outdoor adventures, world-class shopping, and historic attractions.
Some of Montgomery County’s other appealing landmarks include the Valley Forge Casino Resort and the Montgomery County Wine Trail. There are also many pet-friendly trails and parks to enjoy, as well as plenty of places to swim, paddleboard, and kayak. The Philadelphia Folk Festival also takes place here every August in Upper Salford Township.
55+ Communities in Montgomery County
Ambler
Blue Bell
Collegeville
- Regency Hills at Providence
- The Courtyards at Collegeville
- The Meadows at Skippack
- Traditions at Skippack
- White Springs at Providence
Dresher
Hatfield
Horsham
Lansdale
Norristown
North Wales
Pennsburg
Pottstown
Red Hill
Royersford
Schwenksville
Souderton
Telford
Chester County
This region is about 30 minutes west of Philadelphia and is steeped in Revolutionary War history. It’s a hilly area with many waterways, including the Brandywine River, and numerous state parks.
Chester County’s noteworthy towns include Avondale, Devon, Downingtown, Kennett Square, Phoenixville, and Pottstown. Two of its biggest landmarks are Longwood Gardens and the quaint town of West Chester, where you’ll also find West Chester University (WCU) and a very cool downtown worth checking out.
The southern part of this county is called the Brandywine Valley—it’s home to Nemours Mansion & Gardens, Brandywine Battlefield Park, Winterthur, and other historic landmarks. Kennett Square and Phoenixville are two small towns with plenty of fun things to do, and if you want to get some exercise, you can visit Black Rock Sanctuary and its other outdoor parks.
55+ Communities in Chester County
Avondale
Coatesville
Cochranville
Downingtown
- Downing Forge
- Preserve at Marsh Creek
- The Woods at Rock Raymond
- Traditions of America at West Brandywine
Honey Brook
Kennett Square
Landenberg
Oxford
Phoenixville
West Chester
West Grove
Ready to Make the Move? 55Places Can Help
To discover more exciting 55+ communities in Philadelphia, contact us! We’ll connect you with a local real estate expert who will guide you through the top options in your area and help you make a seamless transition from your current home to a 55+ community. We look forward to helping you make your next move the best one yet.
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