Where you live in retirement might have a significant impact on your total financial strategy. “Where do I want to retire?” is one of the most fundamental questions people must ask themselves when considering retirement.
Will you be content in a new location? The response will differ from one person to the next. So, what exactly are you looking for? Is that move going to improve or degrade your quality of life?
Consider the following four questions before making a significant retirement move, keeping your happiness in mind.
How Will You Occupy Your Time?
Weekends often seem to fly by, but when you don’t have much to do during the week, days might feel forever. “What will I do all day?” is a fairly easy question that many individuals overlook before retiring and relocating to live out their golden years.
Have you had enough of the rush and bustle of city life? Do you wish you could relocate to the country and live in peace and quiet?
Coastal lovers should also bear in mind that, while beach cities are fantastic for holidays, they may not be as tempting during the winter months. They can also be missing out on nightlife and cultural activities. Consider your activities and if you’ll be able to continue to engage in and enjoy them in your new place.
Do you think you’ll be willing to rent when you retire?
Should retirees rent or own? is a more in-depth discussion of this question. Consider renting if you’re relocating somewhere new. If you change your mind or choose the wrong neighborhood, you’ll have the most flexibility. Renting in retirement may sound strange to individuals who have owned houses their whole adult life, but it might make financial sense in specific situations.
Renting allows you to figure out where in the town you fit. It also gives you time to see whether or not you can handle the four seasons (or lack of seasons in Los Angeles) that come with a new hometown. Renting also relieves the stress of home maintenance. The landlord is responsible for scheduling and paying for maintenance and repairs.
Downsizing in retirement can be a great way to cut costs and responsibility. On the other hand, some couples get a little ambitious on how small a place they can handle. Renting offers the flexibility to upsize or further downsize, if needed. It also makes it easier to move again if you find that another location would be better in order to be closer to friends or family.