Moving is a big decision during any stage of life, but there are important considerations to keep in mind if you’re thinking about picking up and starting new in retirement. Ask yourself these questions to help clarify if relocating is the right move for you.
Why do you want to move? What’s motivating you to move away from your current home? Are you looking to downsize? Or would a more rural or urban community than you reside in now be more beneficial? Are you looking for more temperate weather? Perhaps you have children, grandchildren, or other family and friends in a new area. If so, make sure you would still enjoy living in that area even if they moved away due to a job transfer, for example. Carefully consider why you’re thinking about a move before you start looking for somewhere new.
What would your ideal new home and location look like? Once you’ve clarified why a move would be desirable, it helps to envision what you’re looking for in a new home and community. Keep an open mind about retirement locations. Take some time to think about what your ideal day might look like. If you have a particular location(s) in mind, make sure the community offers activities and support for your desired lifestyle in retirement. Does it have good access to health care resources? Is there a good transportation system in place if needed? How safe is the community and will you feel secure? What would your new home look like?
Can you afford the move? Not just the costs, but what you’ll be leaving behind. How much will it cost you to relocate? Try to calculate costs in tangible and intangible assets. Tangible assets might be the cost of buying (or renting) a new home and selling your old one, moving expenses, or the capital gains tax from selling your home. Intangible assets are the relationships you’ve built with friends or family members in your current home and community that can lend a helping hand when you need it. Can you afford to lose these assets? Sometimes in the excitement of starting over in a new place, we forget all that will be left behind. Make sure you are aware and ready for the adjustments that a move will surely bring.
Can you afford to stay? Is that something you’re still considering? It’s important to consider the financial opportunities and trade-offs for any potential path you may take – including staying in your current home. Make sure you understand what the cost of staying will be to ensure it does not exceed your retirement savings. Factor in expenses for potential renovations, ongoing maintenance, or modifications to accommodate aging. Also, compare the cost of living and local taxes with the other locations you’re interested in, and think about the travel expenses to visit family members.
If after answering these questions – you’ve decided you’re ready to start planning your new life in retirement somewhere new, download this relocation workbook to help you prepare!
And, if at any time you need help determining what your best option would be, we can help. Schedule some time with us and get experienced guidance from a financial planning team committed to helping you transition to the next phase of your life with peace of mind.
