Most Americans look forward to their retirement before they are eligible for it. The thought of whiling away your days relaxing on a beach or taking up a rewarding hobby is enough to keep the worries of the work-a-day world at bay.
However, the process of actually retiring isn’t necessarily a day at the beach. There are many financial concerns to conquer and loose ends to tie up. One of the biggest things to consider upon retirement is whether to relocate and where to move.
Moving out of state to a warmer climate or closer to family members are common relocation choices for many recent retirees, but both can be complicated tasks. You’ll need to pack all your belongings, organize your estate and hire a household moving company. Additionally, finding the right location, buying a house and getting acclimated to your new environment are also important to a successful move.
When deciding where and how to move after you retire, consider the following factors.
As you get older, climate can become more important. Slippery, snow-covered sidewalks can cause falls, which become more serious as you age. Warm climates also encourage regular outdoor exercise such as long walks and bike rides, which can be a crucial component of staying healthy in your golden years.
Of course, the same factors that led you to choose a warmer climate likely evinced a similar response from your peers. Retirement communities pop up in temperate regions for a reason, and if you want a large group of like-minded retirees, it’s best to head for one of the hotter states. Florida, Arizona, Texas, California and Nevada are all common choices.
Although you will likely be receiving some form of income – either from your job, the government or both – finances are an important factor in deciding where to retire. There are many ways to approach this decision from a fiscal perspective, and it is worth it to consider them all carefully.
The first is family. If you plan on visiting your descendents often – and on having them come to you – then moving far away from their homes could prove expensive. Conversely, staying close to your current location could save you money on the cost of long distance moving and storage, but might not be the most economical decision for other reasons.
“Relocating to a lower cost community reduces the risk of outliving your retirement assets and having to rely on family during retirement,” Tom Corley, a financial advisor, told Fox Business.
Exploring which regions have lower costs of living and home prices could help you live within your means as you get older.