Thinking about moving after retirement? Discover insights to help you make an informed choice. Embrace a fresh beginning. Learn more.
Updated Jan 31, 2024
We’re connected to our homes by a combination of necessity, preference, and habit. And for many of us, careers are another major influence on where we live, keeping us in one location for years or even decades. As you enter retirement, you’re not only parting ways with the 9–5 schedule but also freeing yourself from the need to live near a workplace or business network. But even if you’re already working from home, retirement can mean letting go of living within country borders or with the connectivity or home office space that might have previously been a must.
Instead, you can choose where you want to make a home based on what’s important to you –– climate, culture, family, cost of living, and more. But just because you’re retired doesn’t mean that moving will be the right choice. There are myriad factors to consider when determining if you should move after retirement, from financial limitations to personal strains. Keeping these in mind, let’s explore the pros and cons of moving after retirement.
First things first: Is moving after retirement right for you? While there are benefits and costs on either side of the equation, it’s crucial that you consider the personal advantages and disadvantages to ensure you end up in the right place during your retirement years –– whether that’s across the globe or somewhere in the United States.
It’s not uncommon to want some change of scenery after retirement. In fact, roughly 234,000 Americans retired to a different state in 2022, not counting those who instead chose to hit the open road or enjoy their retirement in a far-flung destination.1 But apart from putting a few miles on your soul there are other reasons to move after retirement, including:
You’ll want to gather your resources and take it step by step if you’re navigating how to plan for retirement. Consider the following requirements needed to make your post-retirement move a success:
Whether it’s a community soaked in the Phoenix sunshine or a cabin in the mountains of Montana, retirement presents an opportunity to turn the dream of living in an idyllic destination into a reality. Was there a vacation spot you fell in love with in South Carolina? Did you grow up in Fort Worth and now miss your hometown? Are your grandchildren growing up 1,000 miles away? Choosing where to retire is an important decision, so take the time to ensure your chosen location is just right.
If you’ve lived in one place for many years, there are likely certain constants that you don’t give a thought to –– like driving on the right side of the road or salting the sidewalk in the winter. But while you’ll still likely be able to find a Starbucks in any of the locations on your wish list, you may want to look into:
Florida may come to mind as a popular retirement destination, and there are concrete reasons why seniors flock to the land of flamingos. In addition to its warm weather, beaches, and entertainment venues, the state offers:
But Florida isn’t the only state that favors retirees. When you’re comparing possible destinations, look at:
Keep in mind that some of these factors are state- or country-specific, but many vary based on community size and location: whether you’re in a rural area, small town, suburb, or big city of the United States.
When you weigh the pros and cons of moving after retirement, money will likely be among the top considerations. It can go in either direction –– if you move to a desirable coastal town, big city, or resort-level senior retirement community, you may need to stretch your budget to cover higher monthly bills. On the other hand, you can keep costs low by moving to a less populated area, a state with a tax structure that benefits seniors, or a town that balances available services with a lower cost of living.
In June 2023, a half-gallon of milk would’ve cost you $2.56 in New York City versus $1.20 in Kalamazoo, Michigan.4 In other words, the amount it takes to cover your monthly costs –– groceries, gas, utilities, etc. –– can more than double based on location.
In theory, when you move to a high-cost area, the increased cost of living is tempered by a bump in salary. On a fixed retirement income, however, it’s critical to take prices into account, ensuring the retirement you’ve planned for is still the one you can expect.
For a clearer idea of your anticipated expenses in different cities versus your current locale, crunch the numbers using a cost of living calculator.5 This will not only help you decide on a retirement destination but may also help you determine whether moving after retirement is right for you.
Your home is likely one of your most valuable investments, but selling your property isn’t the only way to see a return. If you’re like many retiring Americans, you may be asking: Should I sell or rent my house when I retire? The answer will vary from person to person, as there are both benefits and disadvantages of renting. On the plus side, renting can:
Silver linings, however, come with clouds. Renting can also:
If you have experience with rental homes and someone you trust in mind to manage your property, you might lean toward renting instead of a sale. In this case, renting a home can be a great move when financially planning for retirement. Either way, be sure to do the math carefully before making a decision, taking into consideration:
Leaving behind a work life that has shaped a portion of your identity can be a major adjustment. And even if you’ve been saving and looking forward to your golden years, that much change can take some getting used to. Just as with your physical and financial health, plan on taking care of your emotional health as you navigate this transition –– preserving your existing relationships while also forging new ones.
Starting from scratch may be daunting, but with effort and intention, you can build a support system no matter where you decide to plant new roots. Plan to:
No matter where you are in the world, there’s never been a better time to stay connected virtually, be it through online meeting platforms you can use at no cost old-school methods like phone, mail, and email. To tend to your pre-move relationships, you may want to:
Finding a new place to settle can take a fair deal of time and energy, but the move is where the real work begins. This effort will likely be worth it, however, and the decision of moving after retirement shouldn’t come down to the exhaustion of a potential move. Just take it one small step (or drawer) at a time:
For many, retirement is a time to downsize –– and not just to make moving easier. With children out of the house and the need for a home office in the rearview, you’ll likely need less space and therefore have less room for your belongings.
There are several popular methods of organizing and reducing your belongings, many requiring a bit of introspection. Have you used an item in the last year? Is it in line with your values? Does it bring you joy? Ask yourself these questions as you attempt to declutter and simplify your belongings.
As you proceed, ponder the following pathways:
Even with ample preparation and careful consideration, moves can be tricky to time right. After preparing to list and show your home, you’ll still need the energy to handle the packing, closing, and moving end of the to-do list.
Truehold's sale-leaseback can reduce your chore list and provide maximum flexibility as you plan your new adventure. Instead of the weeks or months of work and uncertainty from a traditional sale, you can expedite a sale closing directly with us, unlocking your wealth and using your home equity for retirement.
The “leaseback” part of sale-leaseback means that you’ll be able to take your time before moving out –– whether that’s an extra few months or several years –– by remaining in your home as a renter.
After closing, we’ll handle the cost and work of essential maintenance and repairs, property tax, and homeowner’s insurance. That frees you up to focus on your dreams, take your time deciding on what to do with your belongings, and move exactly when you’re ready to go.
When you’re ready to review the process and see if Truehold's sale-leaseback option fits your financial picture and goals, connect with one of our expert advisors.
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