Today let’s look at the financial costs to retirement relocation that needs to be considered if you are pondering the question whether to stay put or to move to greener pastures when you retire.
Â Cost of housing is a factor, maybe one of the largest, if you need to keep an eye on your nest egg. And who doesn’t?Â I wouldn’t think many most people would relocate from a less expensive area to a more expensive area.Â Unless it is to a resort area maybe. Consider how much you can get your current home and properties if you are an owner.Â More than one person says it is a great idea to rent first in the new location, just to see if it going to work out for you.Â If you buy right away before learning the area and then need to move, then the property selling expenses could be a huge expense.
Proximity to family and friends.Â This certainly is a major consideration, if not financially, then for other obviously reasons. This could proximity to children, which is the case many times, or proximity to a parent(s).Â One second thought, I guess there is a financial considerations with the cost of travel for visits, having to hire a nurse or sitter in case of medical emergencies when you can’t be close. etc.Â Phone expense and Internet are both so cheap these days it is not a big consideration.Â Having relatives close by to help you out on occasion says you money too.Â
General Cost of Living:Â Â You can get this info from the Census web site.Â On your visits to scout out the new area you will observeÂ how the routine daily expenses compare to your current location.Â Local sales tax levels come in to play here as well.
State and location property taxes:Â If you buy, then this should be looked at.Â In California, you may loose a great tax benefit if you move.Â Â In the new location, do they have any senior discounts?
State and local Income Taxes:Â This has traditional been a major factor in relocation to Florida and other states with no state income taxes. However now many states have tax benefits for seniors.Â Georgia has an exclusion of $25,000 per person for retirement income at age 62 and proposing eliminating all state income taxes at age 65.Â Other states as well.
Weather and utility cost:Â Compare average utility costs and which utilities areÂ needed.
Many other factors to considerÂ are the culture and entertainment available and associated costs.Â Â Click the title above and post your comment.