Plan Ahead for Retirement Move
Retirement is still several years away for Beulah Hodge, but the 51-year-old customer service representative is already dreaming of where she and her husband will live.
“We’d like to move somewhere warmer--we’re tired of shoveling snow,” the Chicago resident said. “We have our eyes on Georgia or Alabama.”
Both states will put the couple close to relatives and offer more attractive climates, she adds.
Within the next decade, the oldest baby boomers--the leading edge of the 76 million Americans born between 1946 and 1964--will begin retiring, or at least reducing their work hours. Like Hodge, about 20% of them expect to relocate in their golden years.
If you’re thinking about moving, it’s crucial to plan in advance, experts say. Moving may cost more than you think--even if you’re headed to an area that appears to be cheaper than your current home.
“We try to plan so that our clients can at least keep the same standard of living, if not higher, in retirement,” said Lisette Smith, a certified financial planner in Boston.
Housing, insurance and taxation are the most obvious expenses, but Smith says it’s also important to consider other costs that moving away can generate. These costs can range from condominium fees that may shock former homeowners to airplane tickets to visit family members who previously might have lived within driving distance.
“Relocating obviously takes some resources,” said Janet Wilmoth, a sociology professor at Purdue University. “There’s also the issue of social support, both in terms of friends and family.”
Prospective retirees need to think about how well their new community is equipped to handle the changing needs of older residents.
“You’re going to want to know about health and human services, like medical care, that are available, as well as long-term care and transportation alternatives when you can no longer drive,” said Dennis Streets, deputy director of the North Carolina Division of Aging. “You need to get familiar with the state before you make a decision to move.”
Many people plan to work during retirement, but that’s not always possible. Though popular vacation destinations have a lot of service industry jobs, such as hotel or restaurant work, they often have fewer jobs for professionals.
“It would have to be somewhere where we could pick up other jobs,” said Hodge, who likes the growing suburbs of Atlanta and Birmingham. “I don’t want to work until I’m 75, but I wouldn’t mind a four-day workweek.”
With a daughter in college, Hodge and her husband estimate that it will take at least five years--and jobs in their new hometown--for them to be able to scale back and move.
Experts suggest that prospective retirees vacation regularly in areas they are considering, preferably at different points throughout the year, to acclimate to changes in weather and the level of activity in the community. Longer-term stays are another good measure of a community’s livability versus its vacationability.
For many people, the question of whether to move comes down to broader quality-of-life issues, such as family, friendship and work.
“Many retirees are looking for people who have the same kind of values they have,” said Ron Manheimer, executive director of the North Carolina Center for Creative Retirement. “They’re interested in lifelong learning, meeting new people. My sense is they’re people who want change and don’t want the kind of place that’s the same all the time.”
That desire motivated Tom Geyer, a former newspaper publisher from the suburbs, to retire in New York City.
“Some people think if you’re retiring you should be going to a place where there’s a golf course, lots of peace and quiet and no crime. That wasn’t for me,” the 54-year-old said. “I live in a 400-square-foot apartment now, but there is no end of activities to do, whether it’s theater, music or books.”
Ultimately, moving won’t fit many people’s plans.
“We’ve entertained the thought of moving within a 200- or 400-mile radius of here, but my grandkids and my wife’s mother are still here,” said David Carmichael, 54, a retired pharmaceutical salesman in Albuquerque, N.M., who now works two days a week at a golf course.
“It will still be a nice retirement, though. We’re still going to travel around the country.”
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Some Factors to Consider
Thinking of relocating in retirement? Here are some things to consider:
* Housing costs. Maintenance, property taxes and utilities can vary from region to region.
* Taxes. State tax rates range from zero to more than 10% of income. Some states don’t tax income but tax a percentage of accumulated assets--a costly notion for retirees.
* Medical care. Is there a good hospital nearby? Will there be adequate long-term care if needed? What kind of community services are available for the elderly?
* Insurance. Besides homeowner’s and auto insurance, health insurance might be affected by a move.
* Transportation. How will you get around when driving is no longer an option? If you will need to take a plane to see family, how expensive are the flights and how long will it take to get there?
* Employment. If you plan to work, what jobs are near your new home? Can your current contacts help you find work?
* Lifestyle. Will you be satisfied living in the community year-round? What will the area look like in 10 years? Are there enough or too many young or older people?
