As they prepare to retire, many retirees will dream of relocating to a new home sometime during their retirement. Whether it is just to get away from the rat race, find a better climate, or be closer to family, it is very common for retirees to want to get away! But before you call the moving company, you’ll want to make sure that relocating is right for you and your retirement plan! Let’s look at some of the mitigating factors you’ll want to look into.
First, will this be a long-term or short-term relocation? Some people will find that they just need to get away for an extended period of time and then they are ready to return to the world they know. Maybe they want to experience a year in a large city, or just winter at the beach. Before you make a permanent decision, make sure you spend some extended time in your dream locale. Make sure you want to live there during all four seasons. Many people know the beach is a dream during the winter months, but are you prepared for the heat and humidity during July?
Next, consider what you will do when you get to the new location. Do you have a plan for how you’ll spend your time there? What kind of social network will be available to you? It’s easy to say you plan to play golf every day, but what will you do when it rains? Have a plan for how you’ll fill the days and make sure it’s something that works for you and your spouse!
Of course, anytime you move to a new place there are a number of economic factors that must be answered. How will your tax situation change be moving to a new state? Some states do not have a state tax and others don’t have sales tax. Other states actually have tax breaks for retirees through Social Security exemptions or tax benefits for retirement income. The cost of living differences will also need to be built into your retirement plan and budget. Can you find comparable housing in your new state at a comparable cost? Will the cost of entertainment and transportation be similar? Again, each locale will have pros and cons for each category, and you must make sure these changes fit within your plan.
Finally, health care is a major consideration for making a move during your retirement years! Retirees must check that there are nearby health care options that fit their unique needs before choosing a new home. Also, will the new climate be compatible with certain health conditions that some retirees experience? It will be important to consult with your doctor before moving to a new place to see if there are health factors that you should consider and possibly see if your doctor can recommend a health care provider in your new home.
Dreaming of a new home in retirement can be exciting, but just like every other part of your retirement plan, it is important to make sure it fits your needs. Make sure you consider all the factors when considering a move in retirement. And when you are making your retirement plan make sure you get the proper help in developing a complete plan! Contact the advisors at Viewpoint Financial Network today and let us help you create a plan that is unique to you!