Although there are many benefits to moving, it doesn’t always mean it’s the right choice.
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Moving after retirement offers better weather, lower costs, and greater access to family, friends, and hobbies. But none of them are guaranteed. A lot depends on where you plan on going and your financial situation.
If any of the three things below apply to you, you may want to reconsider moving after retirement, or consider moving somewhere else instead.
1. You are moving to an area with a high cost of living without having enough savings.
The cost of living in the city you plan to retire to is unlikely to be exactly the same as where you currently live. You may be able to save money by moving to a more affordable location. This is a great strategy to further increase your retirement savings.
But if you move to a more expensive city, you’ll need more savings to retire comfortably. If you’re currently struggling to save for retirement, moving to a more expensive area may not be a wise move.
But that doesn’t mean you’re stuck after retirement. It simply means you might want to look for a more affordable place instead. For example, instead of moving to a large, expensive metropolitan area, you can move to a small town within driving distance of the city.
2. I plan to return home frequently but have not budgeted for transportation expenses.
If you’re moving away from your family and friends during retirement, you’ll probably want to come home and visit them from time to time. No problem if it’s within your budget.
Frequent flights home can be expensive and can deplete your savings sooner than you expected. When calculating how much you need to save for retirement, be sure to factor in transportation costs.
3. I haven’t tested my new city yet to see if I really like it.
It’s easy to get caught up in the idea of what a new city will be like, but reality can sometimes surprise you. That’s why it’s best to try out a new retirement home before selling your existing home. Take a long vacation to your post-retirement destination. Ideally, you’ll want to do this in a few different seasons to get a feel for what it’s really like.
This will give you a better idea of whether your new city is the right place for you. If not, that’s okay. Keep searching until you find something that better matches what you’re looking for. The Motley Fool researched the best places to retire, and our list is a great place to start your search.
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