Deciding Where to Retire? How to Make the Perfect Choice

If you’ve spent the last few decades saving for retirement and the date is coming up, you might be thinking about where to retire. Do you want to stay where you are or move somewhere else? Deciding where to retire can be stressful, but fortunately, we are here to help you make that choice. Regardless of your green flags and deal-breakers, there are a few factors you should consider when deciding where to retire.

Deciding Where to Retire

Consider Your Local Options

Before you start thinking about far-off destinations, you should determine if moving is really necessary. If where you currently live is affordable, close to those you care about, and you are mortgage-free, there’s little purpose in moving for the sake of moving.

If you are looking to cut some costs but stay in the same area, you may want to consider downsizing to a smaller home. This way you can sell your house for a profit and move into a small home that is easier to manage but still close to family. If you have been filled with wanderlust lately, consider whether taking more vacations can scratch that itch without moving to a different area. 

However,  if the cost of living is too high for you to maintain in retirement, deciding to move to a cheaper city might be a prudent choice. 

Assess Your Cost of Living

In retirement, you are likely to receive only 55-80% of what you were making while you were working. Because of this, considering a location with a lower cost of living can be one way to stretch your funds to last longer in retirement. There are also factors, like your partner’s health, that could influence your decision as well. If your partner should fall ill, or worse, you should take into account how a change of circumstances might affect your long-term plans. Taking this into consideration can change where you want to retire.

Know Your Taxes

You should be sure to consider taxation when deciding where to retire. There are three factors to examine before you move:

• State taxes
• Taxes on retirement income
• Taxes on divided income

Remember, a state with lower taxes doesn’t automatically mean it’s a cheaper place to live. That may depend on other taxes, like property tax and the cost of living in a specific area.

Plan for the life you want to live and take that into consideration when thinking about where to retire. Depending on your circumstance, lower taxes may not be enough for you to mitigate expenses. 

Evaluate Amenities for Retirees

When looking for the perfect place to retire, you should look for high livability factors. Are there employment opportunities (should your situation change)? Is there mild weather? What about access to the internet and a low crime rate? 

Another aspect to keep in mind is access to a quality hospital, assisted living communities, adult day services, and things to do to stay active (like a gym, golf, or other activities). Also, are there qualities that lend themselves to a better quality of life in that area, like museums, art venues, historic landmarks, and educational institutions? College towns make for great retirement locations due to the tendency for those neighborhoods to be vibrant and lively. 

Visit First

This may go without saying, but if you are planning on uprooting your life and relocating to an entirely new area, you should visit first. This is especially true if more than one place appeals to you. Once you narrow down your choices to a select few, you should plan a trip to check it out before you seriously consider moving. Weigh the pros and cons of each place before you make your decision.

Be sure not to spend all your time at the hotel and explore the area to be sure you get a good feel for the community.

Research, Research, Research

Before you make any concrete decisions, be sure to conduct an adequate amount of research first. Here are a few things to look for before you move:

• What is the economy in that area like?
• Is the weather consistent year-round?
• Is the cost of living low?
• What is the crime rate like?
• Are there good health care providers in the area?

With all the senior living options today, researching each of them can be exhausting. To help, we have created your FREE Continuing Care Retirement Community Guide to get you started.