Did you know that nearly 1 in 5 Oregon residents are age 65 or older? That begs the question, “Is Oregon good for retirees?”
Oregon, with its stunning natural beauty and laid-back lifestyle, understandably attracts many retirees. However, as is often the case, that picturesque scenery comes with a price tag.
Related: Retiring Into the Next Phase of Your Life
In this blog, we’re exploring ten financial planning questions you should answer if you’re planning to retire in Oregon in 2025, from the average cost of living to medicare premiums and more.
Q&A: 10 Retirement Planning Questions for People Who Plan to Retire in Oregon
1. What is the cost of living in Oregon?
The cost of living in our beautiful state comes at a slightly higher premium than other U.S. regions.
As a whole, the cost of living in Oregon is 13% higher than the national average as of Q1 2025 – especially in categories like housing (31% higher), healthcare (22% higher) and transportation (15% higher). Other expenses are more in line with the rest of the nation, such as utilities (5% below the national average) and groceries (5% above). All in all, Oregon has the 12th highest cost of living in the nation.
Keep in mind that the cost of living will vary depending on which part of Oregon you settle in for retirement. As an obvious example, real estate in Portland is much higher than here in Corvallis.
2. What is the cost of long-term care in Oregon?
Long-term care in Oregon costs between $60,000 and $144,000 per year. Most seniors will need some type of long-term care in their retirement – and the cost of that care can quickly add up.
According to CareScout’s industry-standard long-term care calculator, an at-home health aide will cost you $7,341 per month in 2025, or about $88,000 per year. A private room at a nursing home facility runs around $16,729 per month, while an assisted living facility costs $7,973. Remember that these costs are average estimates and that your price will vary depending on your location and the type of care you require.
Long-term care insurance can be a great help in keeping your out-of-pocket costs low, while potentially offering tax deductions on the monthly premiums.
Related: 5 Ways to Prepare for the Cost of Long-term Care
3. Does Oregon tax Social Security?
Social Security plays a significant role in many retirees’ income.
No, Oregon does not tax Social Security. Only nine states tax Social Security, and Oregon is not one of them. That being said, income from Social Security may impact your federal income tax bracket.
Related: ‘Will Social Security End in My Lifetime?’ and 5 Other Common Questions About Social Security
While Oregon will not tax your Social Security benefits, they may still be subject to federal income taxes. There are several free online calculators you can use, like this one from SmartAsset, that can help you estimate your state tax liability.
4. Does Oregon tax 401(k)s and IRAs?
Yes, Oregon taxes 401(k)s, pensions and IRAs at the full state income tax rate. (Only 13 states do not tax retirement distributions)
Related: 7 Things Oregonians Should Know About Taxes and Retirement
5. Does Oregon tax pensions?
With a few exceptions, Oregon taxes pensions, including PERS. Only 15 states do not tax pensions.
6. Does Oregon have a sales tax?
No, Oregon does not have a sales tax. We are one of only five states with no state sales tax.
7. What are Medicare premiums like in Oregon?
Oregon has the sixth highest average Medicare premiums in the nation, but the out-of-pocket max isn’t too bad.
There are 132 Medicare Advantage plans available in Oregon, with an average monthly premium of $27.49. The average maximum out-of-pocket expense for Medicare is $5,357.
Medicare is a vital component of most retirees’ health insurance plans. Medicare Part A (hospital insurance) premiums are free to most residents, while Part B (medical insurance) coverage starts at $174.70 per month on average. Keep in mind that these expenses will vary depending on your specific situation.
Related: Will Medicare Exist in 10 Years? And Other Common Medicare Questions
The Oregon Department of Human Services also offers several savings programs to help cover the costs associated with Medicare. You must apply to enroll in a program, and eligibility is based on your income.
8. What are Oregon’s laws regarding estate tax?
Oregon is not a community property state, so any assets you acquire during your marriage aren’t automatically considered joint property. And while Oregon doesn’t have an inheritance tax on those inheriting the assets, they do have an estate tax of 10% to 16% for estates worth more than $1 million, giving us the lowest estate tax exemption in the country.
That may sound like a good thing (the lowest tax, yay!), but it actually means that the estate tax kicks in at a lower threshold than any other state with an estate tax. That being said, the federal estate tax exemption threshold is $13.99 million and could increase to $15 million.
Estate planning ensures your assets are distributed according to your wishes after your passing. Each state has different estate and tax laws that dictate how you can create estate planning documents and how your assets are gifted upon your passing. For example, in Oregon you’ll need at least two witnesses to create a legal will.
Click here to learn more frequently asked questions about estate planning laws in Oregon.
9. What is PERS?
If you’re a current or former Oregon public employee, you likely participate in the Public Employees Retirement System (PERS), the state-sponsored retirement plan.
Related: How to Read Your PERS’ Oregon Public Service Retirement Plan (OPSRP) Statements
PERS offers full benefits at the normal retirement age, which varies depending on your membership tier and years of service. In addition, some PERS-eligible employees can file for a tax remedy.
When and how you collect your pension (lump-sum vs. monthly) can affect your overall finances, including taxes and Social Security benefits. If you’re wondering how to optimize your pension benefits, it’s best to consult a financial advisor with experience in PERS.
10. What is the average life expectancy in Oregon?
According to World Population Review, Oregon has the 18th highest life expectancy in the country at 77.4. (If you’re curious, Hawaii comes in first at 79.9 and Mississippi comes in last at 70.9.)
Oregon is a great place to retire, but, like anywhere, it requires careful financial planning. With a clear plan in place and the help of a trusted financial advisor, your dream to retire in Oregon can become a reality.
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Want to learn more about what your retirement could look like in the near future? Click here to connect with a member of our team and get started today.
Wondering what a financial advisor could do for you? Check out our article, “8 Ways Working with a Financial Advisor can Help Improve Your Life.”
