When retirement time beckons, it comes along with a lot of soul-searching process and decision making as to how to enjoy the freedom, the possibility of relocating and living anywhere of your choice where you can enjoy the rest of your life. At retirement, relocation is a top priority for most people while others end up remaining where they are. Various researches conducted in the US showed that nearly 70% of retirees planned to relocate or have relocated. While some US retirees are aspiring to go out of America to enjoy their retirement, non-America citizens are aiming to move to the USA for one reason or the other. (You can read our article “Top 8 Reasons to Move to the USA”).
But when you choose to relocate, deciding where to go is a serious challenge that must involve a well-thought-out plan before your final decision as to where to live, when to move, how to move, etc.
Possible Reasons for Relocation when Retired
People relocate after retirement for many reasons, like the need for a smaller apartment, moving closer to family/friends, moving to a low-tax state, relocating to an aged friendly home or moving for a better healthcare necessity, etc.
In the US, nearly 70% of retirees either planned to relocate or have relocated according to various researches conducted. However, whether you’re relocating to an intrinsic family home, a beautiful beach house in a neighboring city or buying a beautiful farm-house in a far-away community, you must plan well and think deeply before deciding what’s best for you. Therefore, when deciding whether to relocate or not, the following questions will guide you in deciding what’s best for you:
Do you have enough to retire now?
Due to the unstable global economic situations, pension plans have been declining in recent years, and it has made it difficult to envisage whether you’ve saved enough to last a retirement life with stable monthly income or a need to look elsewhere. A Research Institute on Employee Benefit recently conducted a survey which shows that less than 25% of working class people are sure of having enough savings for a happy retirement and just a few were able to calculate the level of saving needed towards retirement.
However, it’s essential to attempt calculating/knowing your retirement savings. Your financial advisors can help with the calculations based on your job’s retirement plan? You can also make use of some free online based retirement savings calculator to see the level of saving needed towards earning reasonable monthly income after retirement. It is advisable to attempt this using different scenarios and from a different perspective with considerations for high inflations, low returns on investment and longevity of age to give you a good idea of what you can/can’t do.
Should you go for an expensive retirement house?
You must first consider the likely cost of your dream retirement home. It’s important to consider what’ll be the likely cost of living in your dream retirement home and how your retirement income will be affected. For instance, you must consider if the needed daily essentials are available cheaply or you must visit expensive departmental or grocery stores to get them, can you access them through a few distance walk or long distance transportations, etc.
You must also consider what the tax situation in your dream location is like. While some states have a low-income tax for workers, they place a high tax on properties, sales, and much more, which aren’t favorable for a retiree. Therefore, you must look before you leap.
Buying house before retirement – How visible?
Buying a retirement house before retiring is possible, but you must decide if it’ll be of significant benefit in the long run. You must consider the likely total cost of owning a second house while still working. Some people buy a retirement home early enough to spend their time-off or vacation there and eventually moved-in, full-time. They believe this helps them to enhance their interest and connections in that area which helps to reduce stress when you finally moved in.
Is your present house aged-friendly?
Considerations for ease of movement and general conveniences when aged should be an essential thing to be considered when deciding whether to move or not. And when you finally decide to relocate, you must be conscious of this factor when deciding where to move to or when to move. Retiring early will give you ample time to try different locations before you choose one and will ensure you still have the needed energy when packing in, sorting your belongings, and handling the other stresses associated with relocation. You can even rent a particular location and spend some time there before you decide if it’ll be a convenient place when you are aged or not.
Do you intend to spend your entire life in the new place?
From the moment you retire, so many things start happening in your life. But you must think about how long you will stay in your new location which will determine your specific choice and timing of your relocation. Since issues like losing a partner or loved one can affect your decision to either stay in a place or move, it is advisable to immediately decide after retirement rather than foot-dragging on the matter so that you and your partner can enjoy your new environment together and make connections that could be of help when that inevitability finally happens.
So when deciding to spend your whole retirement life in your new home, you must ensure that it will be suitable for your aged life. For example, is the home free enough for senior movement, says on a walker, can the bathroom accommodate a sit-in activity, etc. These features are available in many homes in different locations, not just age-restricted area.
Though relocation can be risky and very stressful, it can also be a welcome distraction in the next cycle of your life. But you must make the appropriate decision based on the benefit derivable and the financial implications of your intended adventures. This post has done justice to all you need to know before retirement. Stay tuned to this page for more!