Major life changes often mean changes in your living situation, and retirement is no exception. Whether you are planning on staying put in your home or want to retire to an exotic location, there are some issues you'll need to consider.
If you're thinking about staying put… Like many retirees - perhaps the majority - you don't plan to relocate in retirement at all. If you've lived in a home for a while, you probably have a good idea of what it's going to cost to continue to live there, an important part of retirement planning. But there are some challenges that could come with staying in your current home. If you raised a family, your home may be bigger than you really need. Maintenance costs and taxes may exceed what you really need to spend. Plus, there's the issue of accessibility. You may need to take steps to make sure that's possible, like adding ramps, modifying bathrooms, or widening doorways.
If you're thinking of buying a second home… Dreaming of life in the sun? If this is your plan, make sure your finances can handle it. You'll need to carry the cost of owning and maintaining two properties. (Renting one out when you're not there could minimize costs, though that can come with its own headaches.) Plus, there are travel expenses, which can add up quickly. You'll also need to make sure that you have access to health care, banks, and other essential amenities in your new location.
If you're thinking of moving to another state permanently… Relocating in retirement can mean an exciting adventure, but you need to be prepared. Consider taxes and the cost of living before you pack up. Will you have access to good healthcare? Will you be able to build a new social network? Will your religion or political leanings leave you feeling isolated in your new home? Will you be too far away from your family members?
If you're thinking of retiring abroad… A desire to experience new cultures, along with the possibility of a lower cost of living, inspire many to move to exotic retirement locales. If moving abroad is a possibility for you, you'll need to consider some of the same issues as you would if you were moving to another state. But there are additional issues. Taxes on U.S. citizens abroad can be a stumbling block. Make sure you understand the potential challenges of life in a foreign country as well. For example, some places have restrictions on whether foreigners can own property. Health care may not be up to the standard you're used to. Plus, Medicare won't cover care abroad. You'll also need to be prepared for other lifestyle differences, from the type of food that is available to different rules about setting up bank accounts.
Not sure where you should live in retirement? Please call if you'd like to discuss this in more detail.