All you Need to Know before your Retirement Move

Updated:

Share

Share on facebook
Share on twitter
Share on linkedin
All you Need to Know before your Retirement Move

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.

All you Need to Know before your Retirement Move - Moving Feedback

8 Questions to help you make Decision whether to move in Retirement

The following potential problems should be considered if you would love to move to a new place for your senior years. Regardless of how you handle it, there will be significant adjustments to your life when you retire. That is why most seniors would decide to maintain things as they are by not moving away from their familiar environment.

However, retirement gives the opportunity to gather, pack up, and move to someone you’ve ever dreamed of living. Taking note of that, below are eight questions you should ask yourself before you approach the question on where to move to.  

What’s my main goal in moving?

You may just be thinking of a place with nicer weather, quick and easy access to entertainment, or to just change from your regular. All of the reasons mentioned are all relevant to decide to pick a new place as a home; however, you have to conduct some serious research to ensure your pursuit is a perfect match for your expectations.

For instance, you might want to move to a place with a warmer climate to escape yourself and your household members from the cold winters you have adapted to and avoid being made to stay indoors for months. If the climate of the destination area is very harsh, you could end up swapping unbearable cold weather for very harsh summer weather, which may not be what you really needed.   

Should I give my house up for sale? 

This question is very similar to asking whether to move or remain at your current home. The size of your house, the amount of your equity in your home will both be considered when selling your home.

There may not be a necessary need for a large home, especially if all your children are grown and left, mostly since living in a larger home attracts larger utility bills than a small home. You may also be able to sell from the many amounts of equity you have in your home, reduce them, and still make proceeds from the transaction. 

How does the cost of living correlate to what I’m adapted to?

Your goal when saving and investing for senior age is to gather a very large and conducive place for you to live. Even though you may be crystal clear on the cost of your current home, you may not be as clear on how much you will be paying once you move.

For instance, someone who has lived all his life in a metropolitan area where housing is costly could just decide to settle in a very rural area to save cost. However, higher transit costs, goods, and services, as well as income taxes, might come on the high side in your new location due to its location and proximity to the metro area. 

Your costs could also be greatly increased if you plan to be traveling most often in retirement, maybe to see your family or friends due to the distance between your place and those you are visiting. You could still discover that you are not saving much money even if you lower your housing cost to the minimum.

As said earlier, you need to research. Figure out the local taxes, and factor in the supported services. If what you receive from the local government is less compared to what you’ve adapted to, even though you also pay less, then you could end up spending more from your purse for the services you need. So try and read about the cost of living even as you read on housing costs. 

Is medical care made easily accessible for you?

Medical care is usually one of the major issues when looking to retire. Even though the housing at the new looks attractive, but driving three to four hours to see a doctor may be the worse. That, to most people, doesn’t sound good at all. Doctors may not accept your United States’ health insurance or Medicare if you are looking to relocate abroad.

You have to find out if you will get quality treatment for your underlying and future medical issues? Finding an expert doctor in a big city in the United States is a difficult task on its own, not to talk about in an overseas country.  

Is anything wrong with my current home?

Sometimes the most important question is the simplest one. What is wrong with your current home? Many people just fantasize about moving into retirement. Maybe those people just love to live wild, which is not possible in their current location. However, not everyone moves in retirement, contrary to your belief. You have probably spent many years building relationships and a community in one location.

Even though many of them focus on what they are moving to, for instance, a beach town or warmer climate, but they forget to think of what they will be leaving behind. Consider someone living in Los Angeles, he or she will spend more time on Hawaii or Mexico beaches than he or she would in Los Angeles annually.

New friends can be made in the new town, but it will require some time and effort. Make sure you weigh various options when you are considering moving in retirement.

Will moving place me in a far distance from family?

If you are the type that doesn’t like living far away from loved ones, and your move is about to create a distance of such between you and them, then it is time to consider the facts of moving from the health perspective aside from the emotional way.

As a senior in the country, you need to be around loved ones so they can rally around you in time of trouble, such as decreased mobility, or if you sustain an injury or fall sick and require daily help for a long time. 

Know that long-term care may be required of you if you live far away from family, which is always at the high side. Make sure you are willing and ready to embark on a move that sees you go away from people that really care about you to a place you would consider starting a new life.

Moving in retirement could present an exciting and adventurous life for you. You just have to be certain that you have it figured out before embarking on that move. 

Are social security benefits taxed in the state I’m considering?

Social Security may probably be a great source of income for you when you retire. You could be depriving yourself of such benefits if you relocate to a state that taxes social security benefits. Below are the thirteen states that tax social security currently to different levels:  

  • Colorado
  • Connecticut
  • Kansas
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • North Dakota
  • Rhode Island
  • Utah
  • Vermont
  • West Virginia

You should know that your benefits might be affected if you have any of these states on your consideration list. With that, the majority of these states offer reasonable low costs of living in general, so you may still have something in your pocket after the included taxes.

Is moving in retirement affordable?

This depends on your current location as the question is similar to “Is where I currently stay affordable?” a couple of years ago, a man was working with a client who was so eager to retire immediately as she was caught in an inferno at work. Her thought was to sell her home in Southern California for retirement immediately because almost any other place would have a lower cost of living than Los Angeles. 

Fortunately, and with a little help on his part, they were able to create a retirement plan that reduced her stay in her current home and closer to her family. For those looking to relocate to more expensive destinations, do you have the financial capacity to make the move? For how long can you sustain in a very expensive city with your housing money? How long will they sustain you if you live closer to the beach?

An expert worked with a couple whose retirement plan permits them to live in Manhattan for 10 years. After that, they will have to relocate from NYC to a cheaper location. So there are options for you, and you can include creativity. The important part if to have a great plan to avoid being broke in your senior years. 

Frequently Asked Questions

Where should I move to for retirement?

For example, Punta Gorda, FL is many retirees’ destinations. The warm climate and affordable cost of living make Punta Gorda popular among retirees. Other cheaper cities with a comfortable climate include New Mexico, Albuquerque, and Prescott Arizona. If you prefer affordability to climate, then a move to Topeka, Decatur, or Sioux Falls should be considered.  

What is the amount of savings of average retirees?

About 6 of 10 don’t have retirement savings at all. However, between $1 million and $1.5 million is owned by an average of 65 years old for retirement, as stated by financial experts. 

How can I keep myself busy in retirement?

Perform an activity every week. Another nice way to stay busy during retirement is to stay active. You can keep yourself healthy and grounded when you perform any physical activity like swimming, tennis, jogging, or golfing. Try out sports or activities that involve the team if you like to socialize or meet other people. 

Is there a non-taxable retirement income?

Your social security benefits won’t be taxed if your provisional income is not up to $25,000 or $32,000 for married couples that file a joint return. However, about 50% of your benefits will be taxed if your provisional income is within $25,000 and $34,000, or $32000, and $44,000 for married couples. 

At what age is will tax be stopped on Social Security?

The large part on your other earned income will determine if your social security will or will not be taxed after age 62. Federal income taxes are not expected from those who only receive social security benefits. If you are receiving other income, then you must compare it with the IRS threshold to figure out if your benefits will be taxed. 

What is the Sweet Spot Age-wise to Move?

Some financial advisor says retiring earlier is the best moment to conclude on moving. Since you are not going out to work, you have time to test locations and varieties of spots before deciding. Moving also requires a lot of strength to go through all your earthly possessions, handle the stress of purchasing housing, and settle down in a new place. It is essential to face it before you grow older and couldn’t do much work anymore. 

Scott and Kris jones of age 55 and 72 both break their move between Florida and North Carolina. They first rented for many months in the two locations before they relocate from Tarrytown, N.Y. They make use of the beneficial short-term rental options provided by the two states’ new development; the concluded buying in a community in Florida where they rented, as well as in North Carolina where they bought close by. Scott says the people around you are very important than the house in the area if you are a sociable person. 

Conclusion

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!

David Cohen
David Cohen
He has a degree in literature from Stanford University and a profession in Mass Communication. David is a member of the Moving Feedback research team, an expert in writing educative articles to help readers make the right buying decisions. He is well versed in moving industry matters to give the best advice on moving needs.
David Cohen
David Cohen
He has a degree in literature from Stanford University and a profession in Mass Communication. David is a member of the Moving Feedback research team, an expert in writing educative articles to help readers make the right buying decisions. He is well versed in moving industry matters to give the best advice on moving needs.

More To Explore

Leave a Comment

Table of Contents

Get FREE quotes from Professional Movers