Relocating in Retirement? Here are Four Things That Can Keep Your Costs in Check and Spirits High

Avoid costly surprises that can turn your dream move into a financial headache.

Did the cold and snow over the winter leave you dreaming of a change of scenery – maybe to the point of making a major move toward the retirement lifestyle you’ve always wanted?

If you decide to follow your dream of living somewhere else, it’s crucial to ensure your retirement income and resources can comfortably support the transition. Consider the impact on your fixed income, health benefits, and access to favorite activities before making the leap. Let’s cover a few things to research that will help make your move affordable and enjoyable.

1. Healthcare

Healthcare needs often take higher priority in retirement. To avoid unexpected costs, ensure your Medicare plan or supplemental insurance has a network of approved providers in your new location. Explore all your healthcare needs: hospitals, doctors, specialists, urgent care, nursing homes, and prescriptions. Gain a clear understanding of eligibility, out-of-pocket costs, and the proximity of healthcare facilities to your new home.

2. Cost of Living

Expenses like housing, utilities, groceries, transportation, and insurance can vary widely depending on where you live. As a retiree, it’s important to estimate these costs against your retirement income, Social Security, and any pensions. Resources like a Living Wage Calculator can help you estimate the annual cost of these types of expenses.

Compare income, sales, and property taxes between where you live now and your desired location. Is your retirement income sufficient to cover these costs, including any changes in healthcare or insurance premiums? Assess whether your budget remains realistic if you move and factor in any fixed or limited income sources typical in retirement.

3. Recreation

Retirement is the perfect time to enjoy your hobbies and interests. Make a list of everything you love doing and see if your new location makes them accessible.

4. Community

Staying active and socially engaged is key to a fulfilling retirement, so ensure your new community supports your lifestyle. Do you have loved ones who live nearby, or do you plan to join an older adult community? It’s worth considering how your move may impact your social life and sense of community. If you’re interested in an older adult community, familiarize yourself with its overall cost, including all associated fees.

If you’re ready to start packing and move on to your next adventure, consider a trial run by getting a sense of what it would be like to live in your dream location full-time, if possible.