Planning for retirement involves more than simply saving money. You need to figure out where you want to live. It’s not uncommon for retirees to stay in their current home because moving can be a hassle. However, relocating is often preferred as most retirees want to live in a more comfortable environment than where they’ve been for the last 20 or 30 years. With retirement planning services, you can find the best place for you to retire to stretch your money as far as you need. Considering how important retirement planning is now and in the future, read this short guide to learn more about how retirement planning can help you choose where you want to retire.
Examine your budget
Everybody who retires is going to have a budget to live off of. It’s important to think about your budget and how far you’re planning to make it stretch. For instance, those who retire on the Southern California coast are going to need to have more money set aside to live for 20 years in retirement than those who choose to live in Phoenix. Take a look at your yearly budget and consider how much you can spend on housing, transportation, and taxes.
Evaluate your needs
Think about things that you’re going to need in retirement. This often includes things like nearby medical clinics, grocery stores, and an airport. Remember that with aging comes a greater need for medical care so while you might live far out from medical services now, it’s something that you’re likely going to have readily available during retirement. What’s more, you’ll want grocery stores readily available so you’re able to make regular trips to buy food without having to travel too far. Consider how accessible the airport is relative to an area where you’re going to live as it can be much easier to travel and have visitors come to see you.
Remember your wants
Retirement is often looked at as a time when you finally get to do what you want. For some, they might want to make sure there’s a golf course close by or others a hardware store for hobby woodworking. Think about how you want to spend your days during retirement so you can find an area that provides what you would like to do. If you’re planning on traveling most of your time during retirement, you can cut costs by buying a small home near an airport. You can make your retirement dreams a reality by choosing somewhere that helps to stretch your retirement fund for many years.
Consider cost of living
In recent years, we’ve seen a mass exodus of retirees from Southern California to other states that have a much lower cost of living. States like Arizona, Idaho, and others have felt the impact of this movement as the state of California has been notorious for its extreme cost of housing. When you’re choosing a retirement home, take a look at areas where real estate is affordable because you don’t want to dump your entire retirement into a home. This can chew up your retirement fund and significantly cut into the number of years you have the money you need to make it from month to month.
Factor in taxes
Each state is going to have unique taxes that apply when you take your retirement contributions. By choosing a state that minimizes taxes each month, you’ll be much more comfortable and make your money stretch much longer. Consider that while states like Hawaii, Oregon, and Alaska are popular tourist destinations, they’re some of the worst states for retirement because of the cost of living and tax implications that come with living there. Consider what you’ll have to pay in taxes each month as that’s money that you can’t use for yourself.
Contact a retirement planner
Get advice on where to retire with retirement planning services. You can hire an expert by getting in touch with OWLFI. They have an experienced team that can help you identify what you need to consider in planning and locations that meet your needs.