We have all heard of the traditional retirement dream: After decades of work, you move to a sandy beach or the mountains to enjoy golden years of bliss.
But that’s not how retirement turns out for the majority of folks. In reality, 63% of retirees stay in the home where they lived before retiring, according to a recent survey of 2,100 retirees by the Transamerica Center for Retirement Studies.
However, that still leaves a sizable number — 37% — who do pick up stakes and spend their retirement somewhere else.
Among those who relocate, these are the most common reasons for finding a different home for retirement.
1. To be closer to family and friends
Share of retirees who moved for retirement who cited this reason for moving: 33%
When you live in a place — especially if you have been in the same town for a long time — chances are good that many of your family and friends live there too.
But Americans are a mobile bunch. It’s possible that those who are closest to you have moved on. If so, you might be tempted to move so you can reunite.
2. Started a new chapter in life
Share of retirees who moved for retirement who cited this reason for moving: 28%
Retirement is generally seen as a new phase of life. Moving away can give you the clean break you need to start with a fresh slate.
If your retirement is around the corner, prepare by reading “Pre-Retirement Checklist: What to Do Within 5 Years of Retiring.”
3. Reduced expenses (tie)
Share of retirees who moved for retirement who cited this reason for moving: 27%
If you live in a big, expensive city, it might make sense to move to a smaller town where costs are lower.
Some adventurous types might even look for a more affordable place to live outside the country. Before you join them, check out the “11 Essential Tips To Plan Your Retirement Overseas.”
3. Downsized into a smaller home (tie)
Share of retirees who moved for retirement who cited this reason for moving: 27%
Many homeowners nearing retirement are sitting on a mountain of equity. For some, it makes sense to cash in and downsize to a smaller, less expensive home.
Doing so allows them to pocket the savings, which can then be used to fund their golden years.
Other reasons people move for retirement
Here are the rest of the reasons folks cited for moving during retirement:
- Moved to a better climate: 22%
- No longer needed to live near work: 19%
- Change in marital status: 16%
- Moved to a larger home: 14%
- Moved into an aging-friendly home: 8%
- Need care or assisted living: 2%
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