Relocation isn’t just for younger generations seeking new job prospects. With the end of your career fast approaching, retirement gives you the perfect opportunity for a change of scenery.
Cutting living expenses, establishing a stronger support network, and getting closer to those you love are just some of the many reasons you might be considering a move.
Here’s a rundown of the five biggest reasons retirees hit the road.
1. Lowering housing costs
House-rich, cash-poor folks can decrease their homeownership expenses by moving to smaller properties in cheaper housing markets.
Selling an existing home can provide you with extra cash you can use to upgrade your quality of life. And even if you’re not quite retired yet, the money you make can give you more money to put toward retirement savings before you collect that gold watch.
2. Improving your tax situation
If you’re like most people, you want to reduce your tax burden wherever possible. And moving is often a great way to do that.
Moving from a high-tax state to a state with no income tax means less money going to your state and more staying your pocket. Do a little research first, however. A dozen states tax dividend and interest income, including annuity and bond payments.
3. Improving your housing situation
Retirement is a great opportunity to get a new home that’s better suited to your needs. Finding a place with fewer staircases, grab bars in the bathrooms, and wider doorways for wheelchair access will help you age in place.
Continuing care retirement communities (CCRCs) may also interest those expecting more significant declines in health or cognition.
4. Pursuing your retirement passions
Less time spent working means more time for leisure. So why not spend that time doing things you love?
Focusing your housing search on easy access to the resources you need for your favorite hobbies will make them easy to maintain, so prioritizing your physical environment over connections that might pull you back to your existing location is something to consider.
5. Changing your physical environment
Finally, a retirement move can help erase stressful old memories by encouraging you to forge happier ones in a brand-new environment.
Financial stress may have made you unhappy for many years, leading to negative experiences you might assign to the area you’ve lived through them in. This is especially true if affording your home is a substantial concern you face.
Any resulting unhappiness will likely conflict with the lower stress levels you want in retirement, so a fresh start may be just the ticket if your finances, family ties, or hobbies will be better-served.
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