Financial Advisor: Tips on Relocating in Retirement
Did you know that 40% of workers today plan to move to a different city or region after they retire? Retirees are keen to try new things, leave their comfort zones, and change their idea of retirement living.
However, the decision to relocate during retirement shouldn’t be made lightly. Many questions need to be answered to make sure the move fits your retirement goals and lifestyle.
What is the cost of living in the new location?
The cost of living varies greatly across different regions. Compare prices for groceries, utilities, transportation, and other daily living expenses to understand if the new location fits your budget.
What are the housing costs?
Whether you plan to rent or buy, it’s essential to analyze housing costs in the new location. Should I buy a house or rent one? Which option is more flexible and cost-effective at this point in my life.
What are the tax implications?
Taxes can take a big chunk out of your retirement income. Consider the state’s income tax, property tax, and sales tax. Some states offer tax breaks for retirees, while others tax pension or Social Security income.
What are the healthcare costs?
Factor in the cost of health insurance, routine care, and specialist treatment in the new location. South Dakota has the most expensive health care, while Michigan has the cheapest, according to a study.
How accessible is quality healthcare?
As we age, access to healthcare becomes paramount. Does your proposed new location have good hospitals? Are there specialists in areas relevant to your health needs?
Is the climate suitable?
Some retirees are drawn to warmer climates, while others prefer cooler ones. Consider whether the climate in your potential new home will support your preferred activities and overall health.
What recreational and social activities are available?
Retirement is a time to pursue hobbies and interests. Find out what activities are nearby and if there are groups or organizations to meet new people.
Does the area suit your lifestyle?
If you’re an active retiree, you might prefer an urban environment with cultural, entertainment, and dining opportunities. Alternatively, if peace and quiet are your goals, a rural or suburban setting might be more appealing.
How close will you be to family and friends?
Being near loved ones is often a significant consideration for retirees. If moving away, think about the ease and affordability of travel back to see them.
What are the transportation options?
If you want to drive less, look for a place with good public transport, reliable taxis, or community shuttles.
Bottom Line
Making the decision to relocate in retirement is a significant step that requires careful consideration and planning. Remember that retirement is a journey, not a destination.
It is essential to approach the decision to relocate with an open mind and a willingness to adapt to new surroundings. Embrace the opportunity to explore new communities, make new friends, and engage in new experiences. Choose a location that meets your retirement dreams and can adapt to your future needs and interests.
Sources:
https://www.fool.com/retirement/2023/02/20/40-of-workers-plan-to-relocate-in-retirement-shoul/
Disclosures:
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.
Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.