Retirement Planning
June 23, 2023

5 Insider Tips for the Arizona Retirement System

Stewart Willis

Retirement is something we should all look forward to, and these insider tips about the Arizona retirement system can help you do exactly that. Your retirement years are your golden years — a time when you want to be financially stable and have a high quality of life that keeps you fulfilled.

Arizona is ideal for seniors looking to retire in a warm, welcoming environment (just make sure you can stand the heat).

Arizona offers something for everyone with its stunning desert landscape, bustling cities, and vibrant culture. From its excellent senior communities to its low cost of living, Arizona has become a popular retirement destination. This is important to consider when thinking about your retirement plans.

Here are some of the Arizona state retirement system benefits and tips you should be aware of.

1. You Can Take Advantage of Low State Taxes

Arizona is a retirement-friendly state because it's known for its low state taxes. Lower taxes are a great way to increase your personal wealth and improve your standard of living.

Lower taxes on your retirement accounts can help you make your money last longer and ensure that you have a stable income during your retirement years. Whether investing in the stock market, traveling, or putting money away for a rainy day, lower taxes mean more options.

2. You Can Capitalize on No Taxes on Social Security Income

Fortunately, the Arizona retirement system doesn't tax Social Security income. Having Social Security benefits exempt from taxes boosts your retirement income and allows you to manage your daily expenses more easily. This helps you to maintain a better quality of life.

With simplified tax planning, you can eliminate one of the most stressful factors in calculating your tax liability and ensure your finances are in order. There's no need to worry about incurring penalties for underestimating the tax liability of these benefits.

3. You Can Avoid Estate and Inheritance Taxes

One advantage of Arizona’s state retirement system rules is the lack of inheritance and estate taxes. Upon the death of an individual, an estate tax is imposed on their right to transfer property. It is referred to as the estate tax because it is charged on the estate owned by the decedent before it goes to the heirs. On the other hand, an inheritance tax is a tax on the beneficiaries receiving the assets, and it is based on the value of the assets they receive.

You won't have to deal with this with the Arizona retirement system, but you may be subject to federal taxes. Without state inheritance and estate taxes, those with a high net worth or even moderate estates can obtain a substantial financial advantage for their beneficiaries.

4. You Have Litigation Protection on Your IRAs

IRAs are a great way to save for your future, but it can be difficult to make long-term commitments when you don't know if your money is safe. Thankfully, the Arizona retirement system has laws that provide creditor protection for retirement accounts.

With creditor protection, you can safeguard your retirement funds from potential lawsuits and debt obligations. Not only does this provide peace of mind, it also ensures that your hard-earned savings are used for their intended purpose — providing a secure retirement. Having an IRA with creditor protection makes it much easier to stay prepared for unexpected expenses that may occur during your retirement.

5. You Have Access to Retirement Planning Experts

Since Arizona is a hotspot for retirees, there should be no surprise that there are numerous services and professionals who can assist you in your retirement planning.

The Arizona retirement system rules are more lenient than other, high-tax states. If you truly want to make the most of your retirement plans, you need experts by your side.

Senior woman reviewing a financial document

Asset Preservation Wealth & Tax provides retirement planning with your taxes and estate planning in mind. As we get older, it is more difficult for us to make decisions as our faculties decline. Finding a financial advisor while you have the ability is in your best interest, not just for you but also for your spouse and loved ones.

Even if you have a hands-on approach to your financial management, you should seek some expert assistance. What happens when if you aren’t around to manage your finances? Since we understand Arizona’s retirement system, we can help find the best way forward for you.

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Stewart Willis is the founder and president of Asset Preservation Wealth & Tax, a financial planning firm in Phoenix, Arizona. Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.

The commentary on this blog reflects the personal opinions, viewpoints and analyses of the author, Stewart Willis, providing such comments, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment, legal or tax advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations for services, execution of required documentation, including receipt of required disclosures. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Any statistical data or information obtained from or prepared by third party sources that Foundations deems reliable but in no way does Foundations guarantee the accuracy or completeness. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to and search by our firm name or by our CRD # 175083.

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