How to Decide Where to Live After Retirement

Retirement isn’t just the beginning of your career. It’s a new chapter of your life — full of opportunities to change and live the life you want to live. If you are nearing retirement or are newly retired, then one of the possible changes you can make in your life is your location. 

Some retirees may move somewhere they’ve always wanted to live since their work lives are no longer holding them back. Others may move elsewhere due to a variety of factors, such as housing costs, safety, healthcare options, and climate. 

No matter your reason for moving, you should evaluate these factors and more before finalizing your decision. 

Cost of Living

Cost of living is a principle that affects all those who move — not just retirees. Every location has different expenses, including taxes, the cost of renting or buying a home, utilities, and recreational activities. 

Most places may have high housing expenses but low costs in other areas that balance out the cost of living. There are some areas, however, that may have a lower cost of living due to external factors. For example, Phoenix, Arizona is a popular destination for retirees. This is partly because The state of Arizona does not tax Social Security benefits — a policy that significantly lowers the cost of living for retirees in the state. The lower cost of living and tax-friendly social security may be an incentive to consider retiring in Phoenix and remodeling your house to your liking.

Tax Considerations

Each state in the U.S. has different tax laws to take into account when choosing a retirement location. For example, Alaska does not have any state income tax or sales tax. However, if you plan to buy property, you’ll be faced with high property taxes. In Delaware,  residents pay no property taxes or local sales taxes, however, there is a mid-range income tax rate. 

You can evaluate which state is best for you by evaluating your income, whether or not you plan to own a home, and your spending habits in comparison to your desired location’s tax policies. 

Housing Options

There are a variety of options for living arrangements in retirement, including: 

• Retirement communities: These neighborhoods and communities are made for retirees to make friends, share new experiences, and spend time around their peers.  
• Assisted living centers: If you need more daily care due to medical concerns, an assisted living center can provide medical professionals and aides to ensure you are happy and healthy.  
• Apartments: An apartment is a good housing option for those interested in downsizing in retirement. 
• Houses: A house, whether it is a new house or your current residence, can provide room for you, visiting family members, and pets. 

Each of these options offers different benefits and comes with different associated costs. For example, if you already own a house or apartment, then it may be cheaper to remodel your existing home instead of buying a new property.  In addition, buying a fixer-upper and remodeling it may be cheaper than buying a turnkey house. 

Move Out or Age in Place?

One of the biggest decisions a retiree can make is deciding whether to move out of their home or age in place. Aging in place is the ability to live in your own home and community as you age, as opposed to living in a retirement community or assisted living facility. When making this decision, consider: 

• Health: If you need around-the-clock care, then moving into a care facility may be in your best interest. However, at-home aides can assist you in your home. 
• Mobility: If you are aging in place, you will need to make changes to your home including wheelchair access and handrails. Retirement communities often already have these accommodations. 
• Family and community support: Aging in place allows you to stay close to your friends and family.  

If you choose to age in place, you can renovate your home to be more safe and accommodating to your needs as you age, including: 

• Widening the doorways: Wheelchairs and walkers can move more easily between rooms in your home with this change. 
• Safety features in bathrooms: Getting floor mats and a walk-in tub can reduce the risk of a dangerous fall. 
• Handrails: Handrails can be placed around the home to help you move around safely as you age. 

These renovations can allow you to retire comfortably in your current home while staying safe and healthy. 

Safety

According to the U.S. Department of Justice, older adults are more vulnerable to crime than any other age group. As you age, you should prioritize your safety more than ever when choosing your location. You can evaluate the safety of each location by looking at the following factors. Some safety measures you should evaluate in a new location include:

• Traffic: Is your new location a high-traffic area where accidents occur frequently? Are there plenty of roadside safety features such as crosswalks and sidewalks? These questions impact your overall safety on the road. 
• Crime: The overall crime rate in your new location and neighborhood may predict your overall safety after moving there. 
• Emergency services: Pick a location that is close to emergency services or an urgent care clinic.

Each of these safety issues can severely affect your retirement experience and your overall health and well-being. 

Healthcare and Other Services

With age often comes additional health concerns. And although you may be inclined to move to a rural area to live out your golden years away from the prying eyes of others, it may not be conducive if health concerns arise.

Choosing a home close to a hospital, primary care physician, specialists, and physical therapists is important and can save you unnecessary stress later in life. 

Climate

Older adults lose body heat much quicker than younger people which may cause a variety of health issues when exposed to cold air for too long. Medical conditions such as thyroid problems and diabetes can impact the body’s ability to regulate temperature. 

For these reasons, many older adults prefer to retire in warm climates. Mild climates, such as the environment found in sunny California, are beneficial to a retiree’s overall health and happiness. Those who choose to age in place in a sunny California city such as San Diego, they may choose to remodel their outdated house to take advantage of the climate.

Proximity to Family and Friends

When many people retire, they have more time on their hands to spend with family and friends, which often prompts them to move closer to loved ones. You may also already live in the same area as your loved ones, which may affect your decision to move or stay in your current home.

If the latter case is applicable, you can always remodel your home to your liking. It may not require a move, but it can certainly be new to you! 

Once you live next to close ones, you can enjoy some of the benefits — you’ll have a more active social life and an established support system during emergencies. 

Community and Recreation

Having access to a community of your peers can improve your social life and your health. When researching possible retirement destinations, look into the opportunities available for community engagement and recreation. 

Senior centers, community programs, and social clubs can all offer retirees with fun activities to enjoy. 

No matter your location — whether it is right in your hometown or across the country — taking the time to consider your options will improve your quality of life in retirement.