The years prior to your retirement are filled with decisions. How will you replace your days and hours at work with traveling, volunteering or lying on the beach?
When should you start claiming Social Security? Do you want or need a part-time job?
Will you continue to live where you are currently living or do you want to relocate and if so, where to?
Approximately 1/3 of retirees don’t believe that it makes sense to stay put once they retire and about 1 in 6 say they will be forced to relocate to a more affordable place according to a survey conducted by the Nationwide Retirement Institute.
While costs are a critical factor, you will need to think about access to quality health care and the availability of activities that you enjoy.
Florida, Arizona, South Carolina and Texas are go-to spots for new retirees. These sunny locations have offered a relatively affordable cost of living and friendly tax environment. They also come with opportunities such as hiking, golf and swimming.
Are activities such as the theater, fine dining, skiing and a major airport important to you?
How close do you want to be to your children/grandchildren? If you have a pet, will a yard to play in be important?
Local Tax Rates
Taxes can take a sizeable bite out of your retirement income. There are 13 states that do not tax traditional retirement income such as Social Security and distributions from retirement savings accounts.
Some states do not have any state income taxes that you need to pay.
Don’t forget about property taxes should you own your home and sales taxes on what you purchase.
Health Care
Start by identifying the nearest large medical facility and research its services to make certain it has what you need.
This is critical if you use a Medicare Advantage plan because these private plans typically require beneficiaries to use in-network physicians and hospitals.
Don’t forget to assess the quality of care at the local facilities. Medicare has a comparison tool to assist with this task. The tool can help you find doctors, nursing homes, home health services and more in a geographic location.
Lifestyle Suitability
Envision the place that embodies your dream retirement. If you crave the action of a city with theaters, museums, shops, dining, etc., look for solid public transportation. On the other hand, if you feel more at home living on a quiet street and using the car to get around, a suburban or rural neighborhood makes more sense.
Visit any potential retirement destination a few times and during different seasons. Many issues will expose themselves after you have been exposed to a new area over time.
As we age, we may need assistance. Is it worth thinking about whether to move to a location close to your family?
Climate Risks
It is natural to want to leave a cold and snowy climate for a warmer one. But there are downsides to such states such as Florida with its hurricane season and California with its wildfires.
Protecting your home against these disasters can be very costly. Either the cost of insurance has sky-rocketed or private insurers no longer offer insurance.
It would be valuable to speak with a local insurance broker in the area that you are planning on moving to.
Sense of Community
Get a feel of the place that you want to move to. Does it have what you will need to be happy as you age?
The first task is to think about how you plan to spend your time in retirement. Will you seek out part-time work or opportunities to volunteer your services? Would you like a schedule of social activities?
Pre-retirees tend to think about their retirement as an opportunity to travel, travel and more travel. Eventually though, they do have to come back and settle into a daily routine.
When you retire, you lose the structure for the day. If you are working, you know when you will get up, what routes to take and what you will be doing during the day.
When you retire, all of those structures need to be resettled and that often becomes a hurdle for many retirees.
Consider who you will spend your time with and what you will be doing. Research has shown that those who have a purpose in retirement enjoy a higher level of psychological well-being.
In summary, get a sense of what your schedule will be. Knowing what you will be doing when you move will remove uncertainty from your life and help ensure that you are not one of the 34% of adults ages 50-80 who according to the University of Michigan’s National Poll on Healthy Aging, report feeling isolated from others.
At Retirement Solutions, we have for over 40 years helped clients identify what they want most from their retirement. This includes where to live and what they would enjoy doing for the rest of their lives. We invite you to contact us for a no-obligation, no-cost 15 minute consultation on this subject. You talk, we listen!
Simply click on the “Let’s Discuss Your Financial Future” in the upper right corner of the website.