7 Moves To Make in Retirement Before Relocating

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Whether it is due to a desire to be closer to grandkids or to get away from the hustle and bustle of a busy city, it is not uncommon for retirees to consider relocating.

But if you do not do your research, it could cost you. The cost of living varies greatly across the country, meaning that you could face an unexpected hike in your expenses if you aren’t careful. 

Doing a detailed cost analysis can help you understand if your budget will be affected by your move. Moving expenses alone can eat up a lot of your savings, so you won’t want to relocate twice if you are on a fixed income.

A little preparation can save you huge amounts of money, leaving you more room to explore your hobbies, travel or spoil your grandbabies. Here are 7 moves to make in retirement before relocating.

Consider the Cost of Living

The cost of living can differ significantly between different states. It can even vary significantly by city. Before you decide to relocate, you need to factor in if your destination has a cost of living that is substantially higher or lower than where you are currently living. 

You can compare the cost of living between two different cities using Sperling’s Best Places calculator. It will give you a wide range of information, such as the median home cost in each city and the price of utilities.

Factor in Housing Expenses

One of the biggest factors that impact a city or state’s cost of living is the price of housing. However, it is not only the cost of the house itself; it is also things like homeowner’s insurance that will cut into your budget.

If you have retired on a fixed income, any fluctuation could make your life miserable. Sitting down and writing all of the costs out will help you to stay within budget and on track for a happy retirement.

Look at Taxes

Undoubtedly, certain states are more favorable towards retirees than others when it comes to taxes.

Many states do not tax retirement income, meaning more money in your pocket. However, if you are considering moving to a state that has less favorable tax laws for retirees, you will want to factor in the added cost. 

Take Into Account Seasonal Price Fluctuations

Few people realize how dramatically the cost of living can go up during challenging seasons.

For instance, in Texas or Arizona, you’ll have to factor in the cost of 24/7 air conditioning during the summer months. If you choose to move north, you’ll want to think about added heating expenses during the winter. 

It is strongly recommended that before you move, you rent for a year to ensure that you enjoy your new abode throughout the year. If renting a home for a year is not in your budget, consider visiting the new location during its worst season to make sure it is the right fit.

If you find yourself still wanting to relocate, be sure to add any seasonal costs to your budget.

Price Out Healthcare

Just as housing is not priced equally throughout the U.S., neither is healthcare. The cost of going to your doctor may rise or lower depending on where you live. Your access to quality healthcare could also be dramatically impacted.

As you narrow down your idea of what retirement will look like, make sure that you think about your health needs. As you age, you will inevitably need a greater degree of care. 

Think About Transportation Costs

Maybe you fell in love with the East Coast or couldn’t get enough of the southern hospitality in Atlanta; relocating in retirement can feel like a dream. Unencumbered by a salaried job, you have a lot more freedom to move where you want. 

The only downside is that you may be moving further away from loved ones, or you may be relocating to a place that has little to no public transportation.

Before you move, consider how much it will cost to travel to see loved ones and add in a buffer if you are going to need to drive long distances to get basic services. 

Make a Budget (And Stick to It!)

The final and most important step to take before you move is to make a budget.

You should never relocate blind. The last thing you want is to move to a new city only to find out that you really can’t afford it or simply don’t enjoy the area.

Do your homework to save yourself a major headache down the road. 

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