I have been working with clients regarding their retirement plans for over 4 decades. Over that period of time, I have come to the realization that retirement planning is not just a number problem to solve. Most of the decisions that we need to make concerning our retirement have both financial and non-financial aspects and it is critical to attend to both of those aspects.
Where we decide to live while in retirement is an example of a decision that has both financial and non-financial considerations.
Let’s face it, as we get older, aging can bring upon us a number of disruptive life events. We are at risk of chronic health issues as well as physical limitations that can make it harder to live independently in your own home. It can be difficult to contemplate that your health might decline or that you may find yourself alone or in a difficult financial situation. That is the challenge: envisioning yourself at an older age when you are likely to be less healthy or mobile.
Very few homes in the United States have single floor living (meaning all of the critical parts of the house are on the first floor), no-step entry and doors that are wide enough for wheelchair access. How will this affect your ability to live in such a house?
Another issue is affordability. Even if you carefully constructed a financial plan with estimates regarding what your monthly income is going to be, you need to ask yourself if your current home is going to be affordable as you age or is it going to be a financial burden. Consider not just the mortgage, but taxes, insurance and any possible large expenditures such as a new roof, appliances, re-do the bathroom to make it more accessible and perhaps a stair lift to get you to the second floor.
Another item to address is the efficient use of space. Are you living in a house with more room than you need? Will the house be physically stressful or emotionally draining going forward because it is too big, too old or in disrepair?
Location and Community
Keep this in mind, most people do not move upon their retirement. When people do move, most do not move very far away. If you do plan on moving upon your retirement, ask yourself these questions: Is your location close enough to healthcare that you want to access such as hospitals, doctors and so on? Is your current location still a good fit considering your needs for transportation, walkability and the like? Would another location be better for proximity to family and friends?
Aging in place is a commonly used term. I believe that the term means that the individual does not want to end up in an institutional setting like a nursing home. The Centers for Disease Control definition of aging in place is the ability to live in one’s home and community safely, independently and comfortably regardless of age, income and ability level.
This doesn’t necessarily mean staying in your house. You might sell your house and move into an apartment in the community that you live in or you might move further out but still have access to family, friends and community services.
Relocation
When it comes to researching places to relocate, find trustworthy resources and avoid the hype about tax-friendly or weather friendly places to live. AARP has a website called The Livability Index that grades every neighborhood and city in the U.S. on a 0 -100 scale. Check it out!
Another site to investigate is called: Best Places. It will suggest locations to you that match your interests and preferences based upon answers you give to questions on housing, affordability, culture, cost of living, etc..
One more resource to research is: Naturally Occurring Retirement Communities (NORC). These are communities of older people that form within apartment buildings or towns with high concentrations of older people. NORC residents can access medical services from visiting nurses and doctors, social services, wellness and social activities. They can be based upon housing or a neighborhood. NORC members do pay a small membership fee but the main source of funds is grants or government funds.
Lastly, there is a book that I can recommend titled: Aging in The Right Place which was written by a gerontologist named Stephen Golant. It examines the relationship between location and successful aging.
As retirement specialists for over 40 years, Retirement Solutions can assist you with this subject as well as the other areas as they pertain to your retirement. We provide a no-cost, no-obligation consultation to determine if we can be of assistance to you. Should you wish to take advantage of this opportunity, simply click the “Schedule a Consultation” tab in the upper right corner of the Home page of the website. You talk, we listen.