Arizona Retirement: 5 Things to Know

No matter your age, retirement planning is essential. This includes deciding where you'll spend your retirement, whether it's full-time or as a snowbird. Arizona, home to the nation's first active adult retirement community established in Youngtown in 1954, has since become a popular destination for retirees.

With nearly 19% of its 7.4 million residents aged 65 and older, Arizona offers a compelling option for retirement living. If you're considering Arizona as your retirement destination, here are five things you should know before making your decision.

1. You’ll Have Plenty of Company

Arizona boasts 151 retirement communities, some catering to residents as young as 45, spread across the state. Among the most popular is Sun City in Sun City, Arizona, an age-restricted community for individuals aged 55 and older. Offering seven recreation centers, Sun City boasts one of the highest rates of golf holes per capita among active adult communities nationwide. Residents enjoy access to indoor and outdoor swimming pools, restaurants, fitness centers, 30 churches, a synagogue, two libraries, a performing arts center, an on-site hospital, and more.

According to Smart Asset, Arizona was one of the top states where people aged 60 and older relocated to in 2021, with a net inflow of 25,090 individuals. Arizona's population continues to grow, increasing by 115,900 from July 1, 2022, to July 1, 2023, according to estimates from the Arizona Office of Economic Opportunity, as reported by the University of Arizona. This represents a growth rate of 1.6%, slightly down from 1.7% in 2022 but significantly higher than the U.S. growth rate of 0.5%.

2. It’s a Dry Heat

But perhaps you've never truly experienced it. "Yes, that 'dry heat' thing is real," says Bob Burwell, a retiree from New York state now residing in Mesa. "Even when the temperature reaches the low 100s with only 8% humidity, it's far more tolerable than 85 degrees with 90% humidity. Plus, once the sun sets, the temperature drops rapidly."

Arizona's annual precipitation varies from 3 inches in the arid southwest to approximately 40 inches in the mountains of east-central Arizona, according to the Arizona State University climate office.

"The most obvious reason to retire in Arizona is the beautiful climate," says Damian Bruno, an affiliate agent with the Sedona–Village of Oak Creek office of Coldwell Banker Residential Brokerage. "However, many do not realize that it offers a varied climate, with the northern part of the state experiencing four distinct seasons."

Yet, despite its appeal, Arizona, like much of the Southwest and West Coast, endured days of record-setting high temperatures in the summer of 2023. During that summer, the state's capital, Phoenix, recorded 110-degree temperatures on 54 days.

3. There's Lots to Do

Retired Arizonans have a plethora of activities to enjoy across the state, according to Coldwell Banker’s Caperon. “There's skiing, professional sports, boating, golfing, hiking, biking, off-roading, sightseeing, fishing...” she says.

And then, of course, there’s the Grand Canyon, along with numerous national parks within driving distance throughout the Southwest. For those 62 and older, purchasing a National Parks and Federal Recreational Lands Senior Pass is a great idea. This pass grants access to the 108 National Park Service sites that charge admission (the majority of the 422 NPS sites are free). Annual passes cost $20, while a lifetime pass is $80 per person. (For comparison, regular admission to the Grand Canyon is $35 per vehicle for a seven-day pass.)

Baseball fans can enjoy the laid-back atmosphere of Major League Baseball’s “Cactus League” across Arizona — spring training for 15 teams in cities such as Phoenix, Tempe, Scottsdale, Surprise, Goodyear, and others. Meanwhile, golf enthusiasts can tee off at over 300 courses across the state.

For those who enjoy gambling and entertainment, Arizona offers easy access to both. Lake Havasu City, home to the transplanted and restored London Bridge, is just across the Colorado River from Laughlin, Nevada, and its casinos.

In Scottsdale (near Phoenix), the Salt River Pima-Maricopa Indian Community operates the expansive Talking Stick Entertainment District, which includes the Talking Stick Resort casino; Salt River Fields at Talking Stick, Major League Baseball's spring training facility for the Arizona Diamondbacks and Colorado Rockies; the 36-hole Talking Stick Golf Club; a Topgolf complex; Octane Raceway, a high-performance indoor-outdoor go-kart facility; a bowling alley; an aquarium; iFly indoor skydiving; and Butterfly Wonderland, a butterfly conservatory, and indoor rainforest.

4. Sales Taxes Vary

Arizona’s state sales tax stands at 5.6%. However, since localities can impose their own sales taxes, the total sales tax you pay can vary significantly depending on where you are within the state. On average, local sales tax rates in Arizona are around 2.7%, making the average combined (state and local) sales tax rate over 8.37%.

Bob Burwell, the retiree from New York now residing in Mesa, has become well-versed in navigating these sales tax differences. “I can leave my community, turn left, and go one mile to a CVS where I'll incur Mesa's 2.0% sales tax (on top of the 5.6% state sales tax),” he explains. “But if I turn right, I'll reach an equidistant Walgreens in unincorporated Maricopa County and avoid that tax.”

5. You Don’t Need to Reset Your Clocks

Arizona is one of only two states that do not observe daylight saving time, with Hawaii being the other. This means that while most states "spring forward" by adjusting their clocks an hour, Arizona remains consistent, aligning with Pacific Daylight Time in spring, summer, and part of fall, and with Mountain Standard Time during most of fall and winter.

As Burwell explains, "The only inconvenience this poses is for live TV, especially sports. In September and October, NFL games start at 10 a.m. Sports bars open at 9 and serve breakfast. Consequently, I don't fall asleep before the World Series games or Monday Night Football are over."