New beginnings, such as retirement, may mark the start of a new chapter in life, a phase where you have the freedom to choose your path and make decisions that align with your desires and aspirations. One such decision that many in these situations contemplate is whether to relocate to a new place. The decision is a personal one and can vary greatly depending on individual circumstances, preferences, and priorities.
Women facing new beginnings may face this decision even before retirement. Perhaps they have lost a loved one or gotten divorced. Whether a woman is embracing new beginnings or not, there are numerous compelling reasons why she might decide not to relocate in retirement.
We also acknowledge that, while the thought of moving may be daunting, relocating in retirement can be an enriching and fulfilling choice as well.
It’s important to note that a one-size-fits-all answer to the relocation question does not exist. Each woman’s situation is unique. The decision to relocate or not in retirement should be based on careful consideration of individual needs, priorities, and goals. Consulting with financial advisors, discussing the decision with family members, and taking into account personal preferences are all important steps in making an informed choice.
This blog focuses on retirement. Other factors can come into play when a new beginning is driven by events other than retirement. You can also check here for some thoughts that can help you decide where to live when you retire.
12 Reasons to Consider Not Relocating When You Retire
1. Familiarity and Comfort:
Many people have deep roots in their current communities, including friends, family, and social networks. Staying in a familiar place can provide a sense of comfort and emotional support, which can be particularly important in retirement. If friends and/or family live nearby, it can also make it easier to see those who matter most to you more frequently. Spending more time with loved ones can improve your happiness.
2. Community Involvement:
Active community involvement can create an incentive for women to stay put. Doing so can allow them to continue contributing to local organizations, volunteering, or participating in clubs and activities they enjoy and are familiar with. Staying put allows them to maintain their community connections.
3. Healthcare Access:
Access to healthcare facilities and providers can be a critical consideration, especially as people age. Staying in an area with good healthcare options may be a priority, particularly if there are existing medical conditions. Changing healthcare providers can be challenging, too. Remaining in a familiar area allows you to continue seeing your current healthcare providers.
4. Cost of Living:
Depending on where a person currently lives, relocating may not necessarily lead to cost savings. Some areas may have a lower cost of living, but others may have higher expenses, so careful financial planning is essential. When evaluating the cost of living in an area, the following necessary expenses should be considered: housing, food, taxes, healthcare, clothing, education, entertainment, and transportation. Average income in an area also affects the cost of living.
5. Emotional Ties:
Emotional ties to a place, such as a family home or a community where you have spent most of your life, can provide strong motivation to stay put. These emotional connections can provide a sense of stability and comfort. Sometimes relocating from an area where your family has lived for decades can be highly challenging emotionally as well. Perhaps, other family members will pressure you to stay. In such cases, it’s important to weigh the positives and negatives. Remember to make the best decision for you and your desired lifestyle.
6. Lifestyle Preferences:
If a woman enjoys the lifestyle and amenities of her current location, she may prefer to stay and continue enjoying those aspects of her life. For example, access to cultural events, outdoor activities, or a particular climate, can all represent valid reasons to stay where she is.
7. Proximity to Family:
Being close to children, grandchildren, or other family members can be a significant factor in the decision to remain in a particular location. Many retirees want to be near their loved ones for support and to maintain close relationships. In addition, living in close proximity to family makes it easier to see them more frequently. As our children age, it gets harder to see them. Seeing them more frequently often improves our happiness as well.
8. Emotional Well-Being:
Change can be both hard and stressful. Relocating can be a significant life change and may come with the stress of adapting to a new environment and making new friends. For some women, maintaining their emotional well-being may be more important than seeking new adventures.
9. Legal and Tax Considerations:
Tax laws and regulations can vary significantly from one location to another. Staying in a familiar place with established legal and financial arrangements may be preferable from a tax and legal perspective. In particular, how income is taxed in retirement can vary significantly from state-to-state. For example, nine states currently have no income tax. Another four states do not tax retirement income. You can also find 38 states that don’t tax Social Security benefits. But don’t limit your thoughts to income taxes. Real estate taxes matter, too. Because of its low property tax rates, some prefer Alabama to Florida even though Alabama has a 5% income tax rate on 401(k)s and other accounts.
10. Relocating Can Be Complicated and Expensive:
It can cost a lot to move. Unless you sell your home on your own, you will pay real estate commissions. Some states, such as Maryland, charge real estate transfer taxes. In the current environment, the interest rate on a new mortgage could be much higher than what you pay on your current mortgage. If you don’t pack your belongings, you will have to pay someone to do it for you. You will also pay to have your belongings moved to a new location. Depending on how far away you plan to move, you may need to pay for hotels or transportation, too. These represent some of the more significant costs. There can be others to consider as well.
11. Personal Preferences:
Ultimately, personal preferences play a significant role in the decision. Some women may simply prefer the comfort and security of staying in their current location, while others may be excited about starting fresh in a new place.
12. Live Your Most Fulfilled Life:
Deciding to relocate in retirement is about taking the reins and living the life you’ve always dreamed of. It’s a chance to design your days, seek inspiration in your surroundings, and create a retirement journey that’s uniquely your own. At Apprise, we focus on helping women facing new beginnings live their most desired lifestyle now and in retirement. That’s why we implemented a life-planning approach to help better align how you spend your money on what matters most to you. If you would like help working on your life plan, please schedule a free call. If you’re unclear about the purpose of a life plan, I recommend watching this video. It provides a great metaphor for what a life plan aims to help you do.
Final Thoughts
Deciding not to relocate in retirement offers a multitude of benefits, from maintaining your ties to your current community and remaining in close proximity to family and friends to optimizing your finances and overall well-being. If your surroundings match your vision of a fulfilling retirement, then staying in place can be the best thing for you. By considering these compelling reasons not to relocate in retirement, you can embark on a journey that enriches your life in ways you may never have imagined.
If you would like to talk to us about financial topics including your investments, creating your life plan, saving for college, or saving for retirement, please complete our contact form or schedule a call or a virtual meeting via Zoom. We will be in touch.
Next week, please look for our Tuesday Tips video blog.
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Phil Weiss founded Apprise Wealth Management. He started his financial services career in 1987 working as a tax professional for Deloitte & Touche. For the past 25+ years, he has worked extensively in the areas of financial planning and investment management. Phil is both a CFA charterholder and a CPA.
Located just north of Baltimore, Apprise works with clients face-to-face locally and can also work virtually regardless of location.
