Looking forward to retirement might seem a difficult prospect with the recent recession that has walloped many of our retirement accounts. However, this doesn’t mean that your retirement dreams should be altogether crushed. It might mean though, that you must adjust how or where you plan to retire.
Refiguring goals, expenses, available income, and similar aspects of your retirement may all factor in to these new calculations, but it is also important to consider the place in which you may retire. Your retirement location can often play a huge role in how you manage your retirement as well as how happy and active you remain during these golden years.
Here are some factors you may want to consider when it comes to your location and how it can affect your retirement.
Depending on where you live and the size of your home, property taxes can put a pretty big dent in your retirement budget, not to mention crimp your retirement lifestyle. Given, a senior discount can greatly reduce the amount of property taxes you pay compared to other property owners, but there may still be thousands of dollars in taxes due each year, and that can come as a shock when your income is limited. Checking with a realtor or visiting real estate listings online can provide you with a better feel for tax rates in the location in which you might be interested in retiring.
Senior discounts abound in our everyday world. From discounted movie prices, meals and public transportation, to reduced pricing for trash pickup and the aforementioned property tax rates, senior discounts are plentiful. Make sure that you are well informed regarding the senior discounts that you might be eligible for or that may be found in your particular retirement area.
As you age, you may not want to hear it, but it’s hard to deny that it’s frightening to see 90-year-olds barreling down the street driving a vehicle, so don’t let your retirement location turn you into one of those people who refuses to stop driving when the time comes. Finding a place to retire that offers abundant and accessible public transportation can make your retirement cheaper by avoiding the costs of upkeep, fuel and insurance on a vehicle, and make it safer for you and others on the road as well.
Cost of Living
Upgrading to a fancier suburb or location in retirement may not be the best idea if you’re looking to save money. While we often look to our retirement as a time to enjoy the good life, moving to an area in which groceries, gasoline, household goods, and other regular expenses are more expensive may actually leave you with a lower quality of life than you expected.
Activities and Events
A city or town in which you have access to parks, recreation centers, libraries, and other sources of free entertainment can make your retirement not only more enjoyable, but more affordable as well. Looking for an area that has a variety of such activities can be an important characteristic in finding a financially attractive retirement location.
Demographics & Security
The demographics of the area you choose to retire can also greatly affect your retirement lifestyle. As a retiree, you might not find yourself comfortable living in a hip and trendy hotbed of 20-somethings. However, you might also not be ready to find yourself in a sleepy community full of octogenarians. Similarly, there are a variety of other issues that the demographics of your retirement location can affect such as property values, tax levels, cost of living, safety, and your quality of life.
The safety of a particular place can lead to increased costs as well, as you may find you must pay for security services, damage to your property, higher insurances rates, loss from theft, and even medical bills from injuries you might suffer from an assault in a dangerous neighborhood.
The author is not a licensed financial professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is solely at the reader’s discretion.