Texas Trust Retirement Planning Advice

Retirement Planning

Relocating for Retirement

Many people save and plan all their lives with the full intention of relocating for retirement. While many have somewhere warm and tropical in mind, plenty of retirees are considering relocation to reduce expenses, live closer to children and grandchildren, or to have better access to quality healthcare during their golden years. Before you pull out the packing boxes, though, there are a few things you might want to consider before relocating for retirement.

Benefits of Relocation

There are many potential benefits to relocating for retirement, some of which are not at all insignificant. As you explore your options, make sure you explore a few of the potential benefits associated with relocating for retirees:

  • Better access to family. If you move closer to family, it can greatly improve your ability to spend more time with your grown children and grandchildren, while reducing the costs of traveling to visit.
  • The ability to choose a home that is built for aging. When people grow older, their needs for home features may change. Perhaps a larger home on multiple floors was perfectly suitable and desirable when you were raising a family, but years into retirement it might be more than you want to maintain and navigate.
  • Easier to do in early retirement. Moving earlier rather than later in retirement allows you to absorb the financial and physical toll of moving much better than attempting to do so later in retirement.

Financial Impact

You may have dreamed of a retirement in which money was no object. The reality is that retirees are spending longer and longer days in retirement. That means, for many people, money most certainly is an object in your golden years. With this in mind, it is necessary to consider a few financial benefits for relocating once you quit working.

  • Reduce maintenance needs. That is especially true if you opt for a newer, smaller home when relocating.
  • Potentially lower cost of living. Moving from a major city to a suburban area can significantly lower your costs of living.
  • Reduction in utilities. Smaller homes often cost less to keep warm and cool.

Of course, this is not a guarantee, and the savings are not universal. So, do a little research to see where a move can save you the most money. After all, the money you save on housing expenses, the more money you will have to spend on things that will make your later years more enjoyable.

Social Impact

One cost people often fail to consider when deciding to relocate is the social change it represents. You have spent a lifetime making friends, getting to know neighbors, and becoming part of a broader community. Moving will not only have you leaving your home behind but also the friends and neighbors that made it feel like home.

It can be a substantial loss for many people should be a serious consideration for anyone contemplating a move. That is especially the case for people who take a while to build new connections and make new friends. The decision to move is one that must be more than purely financial and should take the total costs into account.

Selecting a Location

Choosing the perfect location for retirement may not be as difficult as you believe. You will need to make a few comparisons of your own to determine things like cost of living and which states offer the most attractive benefits to retirees. Healthcare is usually a top consideration for retirees, so look into the presence of quality medical care when deciding on your retirement location.

Some states actively seek retirees offering huge perks to those who choose to live there during their golden years. Look at more than the cost of renting or buying homes. Dig deep and look for information for the state you are considering regarding the following:

  • State income taxes
  • Sales taxes
  • Death taxes
  • Property taxes

Also, don’t forget to look at local prices for groceries and food, gasoline, and utilities as well as for activities that interest you. That will give you an idea of costs you can expect, financially, when moving.

Relocating for retirement is probably not a new concept. However, the science of choosing the perfect retirement location has gotten a little more complicated over the last couple of decades. Keep these things in mind to help make your relocation decision easier, more affordable, and more comfortable to make.

Please note, information and interactive calculators are made available to you as self-help tools for your independent use and are intended for illustrative purposes only. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.