A dilemma facing some people as they transition to retirement is where to live once their career no longer ties them to a certain town. Do you move to be near your grown kids? Look for warmer weather? Create the feeling of permanent vacation by moving to a beach? Chase the best tax benefits?
The senior migration rate (percentage of people aged 55 and over who relocate annually) is normally around 5%. So, not huge. What are some things to consider when making this decision?
Moving to be near the kids
Pros:
- More time spent with your kids now that they are grown and human again. Hey, you lived through the teenage years, you should be rewarded.
- Being involved regularly with your grandkid’s lives and activities.
- Less money spent to travel to visit your kids.
- Family close by to help with aging issues.
Cons:
- Poor boundary or expectation setting could result in decline in your relationship with said adult kids.
- Need to recreate your social circle, doctor relationships, church, etc.
- They could move!
Moving to avoid income taxes.
Sure, that sounds good, but states need money to run services and they will get it somewhere. For example, Texas has no income tax, but very high property tax. States with no income taxes may also have higher sales tax, gas tax, municipal fees, etc. In other words, there is no such thing as a free lunch.
Moving to save money.
No doubt, some cities are way more expensive than others. If you live in San Francisco, part of your retirement plan may be to sell your house and move to Omaha where you can pay 25% of that cost for a new place. Bank the extra and live large on the plains.
Staying put.
In the end, most retirees stay where they are. They have their friends, often family, a home they are used to, doctors they trust, and don’t want the hassle and expense of moving.
Whatever your decision, make sure it is the right one for YOU – not what a magazine or your kids tell you to do.
