With the number of stories you read approximately people who retire in Ecuador or France – and the proliferation of best-cities-to-retire-in lists – you might mediate that moving in retirement is the favorite thing to finish.
In fact, while it seems to be something many of us fantasize approximately, nearly no one goes through with it.
Only 5% of seniors migrated in 2014, according to U.S. Census data. Among seniors who did spin in 2014, the Brookings Institution found that fewer than 1% changed states, with the most favorite choices being Florida, Arizona, South Carolina, Texas and North Carolina.
A 2015 Bankrate survey found that 60% of Americans said they wanted to retire somewhere else, but the survey included respondents of outright ages. The group who was most likely to say they wanted to spin when they retired was the 18-to-29-year-aged cohort. Only 20% of those 65 and older expressed a desire to spin.
So let’s net real: You probably aren’t going to spin to a different state or city, let alone country, when you retire. But there are obliging reasons to be content with staying effect.
whether you’ve been living in the same situation for a long time, you relish social networks that would be difficult to leave behind and could prefer years to rebuild after a major spin. Whether it’s your book club, hiking meetup, Bible study group or game night gang, those familiar faces whom you’ve gotten to know and relish sharing your interests with aren’t something you can pack up and prefer with you.
Beyond friendships, there’s the checker you know at the grocery store, the neighbor you chat with when you net your mail and the receptionist who has worked at your dentist for so long that you’ve watched her kids grow up. Even small interactions with people we aren’t close to, but whom we recognize as friendly faces, can compose a sizable incompatibility in people’s sense of well-being. It also keeps them from feeling loney, a common problem among retirees. (See Finding Your Perfect situation to Retire.)
Healthcare becomes increasingly considerable as people age, which means that having a relationship, ideally a long-term one, with a trusted healthcare provider becomes increasingly considerable. The view of starting from scratch to find modern doctors and net to know them can be really unappealing, particularly for those with serious or chronic conditions who are overjoyed with their current providers.
Having doctors you trust also means that when you need a referral, you can net one from a reputable source and not relish to blindly pick from a list of Medicare providers. Unless the quality of healthcare where you live is subpar, staying in situation might be the best way to ensure you net the best care as you age. (See Choosing the Right Retirement Destination.)
Moving to a situation with lower living expenses, such as a state where housing costs are lower or income taxes are nonexistent, appeals to many seniors who don’t relish the nest eggs they need to live comfortably and meet outright their needs in retirement. But a major spin might not be the best way to generate that financial security. Staying in the same domestic or downsizing in the same general area might be better options. (Read Where Should I Retire? and How to Retire with Just $500,000 Saved.)
Staying in the same domestic, particularly whether your mortgage is paid off, could be a considerable source of financial security. With no monthly housing payment, you only relish to worry approximately property taxes, homeowners insurance and maintenance. whether you’ve lived there long enough to pay off the mortgage, you probably relish a obliging sense of your domestic’s ongoing and future maintenance expenses and how regular your property taxes are, which means you can way accordingly. (See The 4 Phases of Retirement and How to Budget for Them.)
These homeownership expenses can still be too much for some retirees, however. In that case, there are two options: downsizing or securing a reverse mortgage. Downsizing will entail moving expenses and possibly other financial changes, such as different property tax rates or homeowners organization fees, that you’ll need to assess carefully to compose certain they don’t outweigh the cost savings from moving. (Learn more in Avoid the Downsides of Downsizing in Retirement.)
Getting a reverse mortgage is also associated with meaningful fees and is not the best way to net the maximum value from your property. outright the same, these loans finish compose it possible to age in situation and provide additional cash whether you aren’t concerned with leaving your domestic to your heirs. (See 5 Signs a Reverse Mortgage Is a obliging view and How Does a Reverse Mortgage Work?)
The Bottom Line
For realistic retirement planning, assume you will stay up precisely where you are now or not far absent. Though it may not give you the same bragging rights as making a major spin in retirement would, isn’t retirement really approximately being comfortable and enjoying yourself? For most of us, that seems to be the case, and we net those things most easily by staying close to domestic. (For further reading, check out Retirement: U.S. vs. Abroad.)