Retirement often brings a sense of freedom and that includes choosing where you want to live. If you had a residence close to your employer during your working years, you won’t have to worry about the daily commute anymore. You may decide to move closer to family in a different state or settle in a retirement community in a warm climate. You might find an area with a lower cost of living and new places to explore.
If you’re thinking about relocating in retirement, these steps can help:
1. Look at housing costs.
2. Compare monthly expenses.
3. Estimate a moving budget.
4. Consider a trial run.
5. Ask others about their experiences.
6. Evaluate your retirement goals.
7. Think about health care.
8. List the pros and cons.
1. Look at Housing Costs
If you live in a rural area, the amount you pay for housing could be less than what you’ll spend in an urban setting. On the other hand, those who reside in an area of the country with a high cost of living might shift to a region where homes sell for less. “Moving to a more affordable area can provide financial savings and the chance to live a more relaxed lifestyle,” says Michael Collins, professor of financial planning at Endicott College in Beverly, Massachusetts.
2. Compare Monthly Expenses
Your grocery bills and restaurant tabs could be much higher in some cities and states than others. Certain communities cater to retirees and offer events that are free or have a senior discount attached. “Consider the types of activities you want to participate in and the lifestyle you want to pursue, as the cost of living can vary greatly in different parts of the country,” Collins says. “There may be tax incentives depending on the location you choose.”
3. Estimate a Moving Budget
Check prices and compare moving companies to get a sense of what you’ll pay to move your belongings. “If you can keep an open schedule, you can save money on your relocation,” says Corey Schario, director of marketing at Moving Ahead Services in Rootstown, Ohio. “We often recommend days that our calendars are available to help save customers money — this is generally Tuesday, Wednesday and Thursday.” In places with four seasons, it could be less expensive to carry out a move during the winter months. If you are looking to downsize, you could hold a garage sale or sell items online before you relocate.
4. Consider a Trial Run
Rather than purchasing a home or signing a rent contract, think about a test period in the new location. “Before committing to a move — which is a huge investment of time, money and energy — you want to truly make sure it’s the right fit,” says Brian Davis, a real estate investor and founder at SparkRental.com, who spends most of the year overseas.
Think about visiting the new city for a long weekend or a full week. If you enjoy your time, you might come back for a month or two to sample living there. Spend as you normally would on groceries, transportation and entertainment to see if your budget works. “Beyond making sure you like the vibe, get a true sense for the community that you’d be looking to join,” Davis says. “Try to meet up with other people in your tribe and gauge how easy or difficult it would be to build a network of friends.”
5. Ask Others About Their Experiences
If you have friends who recently retired and moved to a different place, ask them to share the lessons they learned along the way. Their stories could help you avoid potential pitfalls during your move. You may find you need to budget more for certain costs than you anticipated. Or you might decide to keep your current residence and spend part of the year, such as the colder months in your region, in a Southern state.
6. Evaluate Your Retirement Goals
Your plans for this post-work stage could include getting to know a new section of the country. If you want to travel, and the location you’re considering for retirement isn’t located close to an airport, you may need to adjust. You could opt to sight see closer to your new home, or spend an extra day or two when you take long trips to accommodate the driving portion of the trip.
7. Think About Health Care
If you have a medical condition that is monitored regularly, you’ll want to make sure you’re close to the health services you need. Your current doctor may be able to offer a recommendation or referral in your new location. Some cities have higher levels of access to health care and more robust hospital systems than others. If you are in good health now, you might choose to tour several care facilities in the new location to see what might be available in the coming years if needs arise.
8. List the Pros and Cons
Every place has its advantages and drawbacks. As you compare your current place of residence with the new spot, it could be helpful to write down what you enjoy in your home now. Then list what isn’t appealing to you about staying there. Continue with the pros that the new place offers, such as lower housing costs or new sights to explore.
“The cons of relocating in retirement may include leaving behind family and friends, difficulty in finding new health care providers and support services, and the added costs associated with moving such as transportation and storage of furniture,” Collins says. The evaluation exercise will make it easier to decide which place seems well suited for your new phase in life.
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Steps to Take Before Relocating in Retirement originally appeared on usnews.com
