There are plenty of factors to consider before you make a drastic life change. Have you always wanted to move in retirement? Will the new location serve you both personally and financially? Here are a few things to consider before moving closer to your kids in your golden years.
How Will A Move Impact Your Finances?
Before you make a big change, you should consider whether you’re financially and emotionally ready for a move. First and foremost, moving is expensive. Some of the costs of moving closer to your kids can include:
- Selling your house
- Real estate agents fee
- Contractor fees for repairs
- Moving your personal possessions
- Buying or renting a new place
Aside from the cost to move, you should also consider the cost of living in the new area. This can include spending areas like housing, day to day expenses, and entertainment.
Even if you’re downsizing, your expenses in a new location may be higher than you realize. Moving from Greenville, South Carolina to Denver Colorado, for example, will come with some higher living costs. Rising expenses in retirement can change your calculations when it comes to spending, saving, and withdrawing from retirement funds and other assets.
You should check to see whether or not your new state has different tax rules. Retirement benefits like Social Security and pension income, income tax, sales tax, and property tax can vary from state to state.
If a new move brings added changes or complications to your financial situation, you should evaluable whether or not you’ll need to alter your spending and saving habits. You should be sure that you’re comfortable with any necessary changes before making the move.
Does The New Area Have Quality Healthcare?
Healthcare coverage in retirement is vital. Wherever you move, you want to have quality healthcare facilities nearby. A two-hour drive won’t help you in an emergency—you need healthcare that’s accessible.
You should evaluate your healthcare needs and coverage options both in your current location and in the place you’re considering moving to. Some considerations to keep in mind include:
- Any specialists you see regularly
- The type of healthcare you currently have
- Whether you’ll need to switch to a new plan in a new location
- Any healthcare cost differences
Will The Location Fulfill Your Lifestyle Needs?
Moving closer to your children and grandchildren in retirement is a goal for many retirees, but it’s essential to keep activities and occupations besides your family in mind.
Your loved ones will have communities and friends of their own, so you must have opportunities that fulfill your lifestyle needs outside of your family. You should consider what activities, volunteer opportunities, work opportunities, or other community organizations you might like to be a part of.
It’s also important to consider whether or not this location is likely to be permanent for your children. Many young families move around before settling down, so you should make sure to be on the same page with your children about their future plans before you commit to a move.
Have The Boundary Talk
Moving closer to family has abundant benefits, but there can also be a few drawbacks to living just a short distance from your loved ones. You should make sure that you and your children understand and respect each other’s boundaries and needs, especially when it comes to visiting, babysitting, and spending time together as a family.
You don’t want there to be any unwelcome surprises or unrealistic expectations discovered only after you’ve already committed to a move. Boundaries should go both ways. First, it’s important to communicate with your children how much time you’re willing and able to spend. But you also shouldn’t automatically assume that your children or grandchildren will be more available just because you live closer.
Before You Move, Try It Out.
It’s essential to make your retirement decisions with precision and care. If you’re not sure about a big move, a straightforward way to test the waters is to visit with your family for an extended period. Take your time to get used to the idea of moving, explore the new area, and check in with your children to make sure you’re all on the same page about any significant life changes.
If you need help navigating the retirement process, we can help. Whether you’re looking for help budgeting, saving, or planning for retirement, we specialize in comprehensive retirement plans for individuals in or nearing retirement. Get in touch with us today to learn more!