After years of hard work, planning, and saving, you are finally ready to retire. Hanging up your work hat and staying in the same city or state might seem attractive to some. But others have been dreaming about breaking away and starting over in a new location.
Maybe you can’t wait to get away from the snow and cold weather that you’ve dealt with for years. Or perhaps you have grown children or grandchildren living far away, and you’d like to be closer. Whatever your reason for moving, if you plan to retire to a new state, here are a few things you’ll want to consider.
Taxes are one of the biggest factors that retirees should consider when relocating. Specifically, you’ll want to understand how much of the income you have coming in is going to be taxed and how this will change with a move.
You can research the state and local taxes in different areas. Even if they are higher, those can sometimes be offset by savings in other areas. Examples are lower utility bills or insurance rates.
Speaking of insurance, get a fair understanding of how this varies from one place to another. For example, if you buy a home in a flood plain, your homeowner’s insurance premiums might go up. However, you might also move to an area that has significantly lower auto insurance rates.
Housing availability and prices should be another consideration. If you want to live in a certain part of the country, does it have a real estate environment to suit your needs? Are there enough homes available for sale, and what is the average sales price? Also, what amenities are there in any retirement communities that you might be interested in?
When you move to another state, you’ll have to establish a new healthcare team. Even if you’re in the best of health, you’ll want a doctor and facilities you can trust nearby. First, make sure your retirement healthcare plan has good out-of-state coverage. Next, check out the healthcare options in the area, including the costs, and see how they compare to what you have now.
5. Social Security
Fortunately, any Social Security income you are currently collecting isn’t going to change when you move to a different state. But another state might tax that income differently. Before you move, verify what will happen with your income and see if any reduction will be offset by a lower cost of living in your new location.
Take a close look at the area you are considering. Aside from healthcare, does it have the amenities and support you want? For example, are there walking and bike trails? Beaches and shops? Plenty of grocery stores and movie theaters? What regular events does the area have each month and year to keep its residents active and connected?
One thing you don’t want to forget is that relocating in retirement is a big change. You might be leaving an area that you’ve lived in for a majority of your life, as well as some family members and friends. Unless you can’t wait to get away, make a plan to stay connected through online sources and some periodic return trips for visits. And you always have the option of buying a retirement home large enough to welcome out-of-town visitors as well.
Thinking of Retiring to Coastal North Carolina?
If you are considering a retirement move to coastal NC, you’ve made an excellent choice. Known for its white-sand beaches, temperate climate, low property taxes, Southern hospitality, and a long list of amenities, communities like Southport and Wilmington have become highly sought after by retirees.
At Creekmore Realty Group, we have a deep knowledge of this area and specialize in helping retirees make a seamless transition. Give us a call. We’ll tell you more about what makes this area so special and help you choose a home and community that meets your needs and interests.