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Should You Relocate in Retirement?

Should You Relocate in Retirement?

April 17, 2020

As many people approach retirement, they start thinking about moving. Before you move, make sure that you think it through.

Do you have family considerations that will keep you in your current area? Is it important to you to stay close to your children, your grandchildren or even your parents? As people are living longer, those in their sixties and seventies are finding themselves more and more responsible for the care of their parents or other older relatives. If this describes your family, you may want to come up with an alternative game plan before heading south.

Don’t forget to think about your own health care. As an advisor, I am seeing more and more of my clients come back this way for the health care offered in the D.C. Baltimore Metropolitan area. You may also need the support of your family if you have a health event. Who will take you to doctor’s appointments if you can’t drive? How about if you have an out-patient procedure – are you going to take an Uber? (Yes, people do this)!

What are your community connections? Are all of your friends where you live now? What are the activities in the area that you are looking to move to? Will you form new connections through those activities?

There are, of course, benefits to moving. You can move to a more tax friendly state than where you currently live. This will help your retirement dollars to go further. In addition, there are other areas in the country where the cost of living is as much as 30% less than the Washington DC Area. Bank has a wonderful cost of living calculator that I recommend checking out if you are considering a move. I have had many clients who couldn’t afford to retire in Maryland, but who are doing fantastic in Florida, South Carolina and North Carolina.

Moving to a lower cost of living area in retirement can be a game changer for many, just be sure to think it through before selling your house. If you don’t want to sell your home, I would love to talk to you about other options.