03/18/2013 07:50 am ET Updated Mar 28, 2013

Tax Friendly States For Retirees (VIDEO)

Surprise expenses -- like rising healthcare costs -- can eat away at your retirement savings. Another cost you'll have to look out for? Taxes. If you're considering moving in your golden years, you may want to "take a look at the tax policies of the destinations you're considering," said Susan B. Garland of Kiplinger's Retirement Report.

Kiplinger's lists the top tax-friendly states for retirees in the video above. "All of the top 10 tax havens exempt social security benefits from taxation," Garland explained. "Plus these states either don't tax any income or exempt income from retirement plans such as pensions, IRAs and annuities."

The number one tax-friendliest state in the country is Alaska, according to Garland. "There's no income tax ... and home owners 65 and over don't pay any municipal taxes on the first 150,000 of assessed values."

To find out which other states are tax friendly for retirees, watch the video above.

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