It’s a question everyone who retires has to decide.
Where do I want to live in retirement?
My wife and I wrestled with it in 2015—stay in Southern Oregon or start over somewhere new?
Moving is expensive. And stressful. And a lot more work than you think it will be.
How do you make such a big decision?
There are a lot of factors to consider.
Ready to think about them?
Practical Factors to Consider Before Moving
Here are some factors to think about when considering a move.
1. Family: Near (But Not Too Near)
Some retirees want to be near their families, while others prefer to maintain a distance.
When my wife and I told my father that we were moving to his area in Phoenix, he kept telling us about a house that was for sale right across the street. We didn’t even consider it because it was much too close. We wanted to preserve some privacy and not be as accessible as a walk across the street.
Some people want to move closer to their children and grandchildren. That can cause problems if you don’t want your time dominated by childcare expectations. See my blog post, Do I Have To Provide Free Childcare When I Retire? Setting Boundaries as a Grandparent.
If you do want to be close, what happens if the children move? As retirement expert Celia Dodd wrote,
“It’s generally considered unwise to build retirement plans around your children, not least because their movements are unpredictable.”
Not Fade Away: How to Thrive in Retirement
And what if you don’t like living in the area they live in?
2. Friends & Social Circles
Being close to or far from friends can have a significant impact on retirement.
Some people have very active social lives and form friendships that last for years, often in their local community. If they move away, their social lives will likely suffer.
Would you be happy if you moved far away from all of the friends that you already have?
3. Health and Medical Resources
As people age, their need for medical care often increases.
It’s crucial to consider the availability of medical resources, specialists, and hospitals in the area you’re considering.
If you choose to move to a remote area, you may be setting yourself up for frequent trips, possibly several hours each way, to receive the medical care you need. Travel expenses, including gas, meals, and hotels, can add up quickly.
4. Lifestyle and Community Fit
Retirees should consider whether they will fit into the culture and lifestyle of the area they are considering. This includes recreational activities and overall way of life.
Celia Dodd wrote in her book on retirement, Not Fade Away,
“Experts agree that the priority has to be people – the community you’ll be moving to – not the views or the amount of sun.”
During the time we were considering retirement, we made a trip to Colorado to attend a Denver Broncos game. We’d lived in Colorado Springs many years earlier, and when we visited, we felt like we were at home.
People wore the same kind of clothes we wore and the culture reflected our outdoor interests. We seriously considered moving there, but the cost was more than our budget allowed.
5. Geography and Climate
What part of the country do you enjoy living in?
Do you have a desire to live in or near mountains or close to the ocean?
What kind of climate do you enjoy? Are the winters too cold and snowy, or are the summers too hot? What about humidity?
These can all be factors that determine your happiness in a new location.
6. Cost of Living and Housing
What’s the general cost of living where you’re thinking about moving to? This would include the costs of utilities, groceries, and healthcare.
What about housing costs? Can you afford the ongoing costs of insurance, maintenance, and property taxes if you buy? What is the rate for rentals you’d consider? Whether you buy or rent, you have to consider whether your budget can afford the cost of the area you’re considering.
What about state taxes? Some states have relatively high income taxes. Others have no income tax. Some states exempt most types of retirement income. Others do not. These factors can make a big difference in the amount of money you have to live on.
Test the Move: Rent First
Before making a final decision, it’s advisable to spend time in the potential retirement location to ensure it’s a good fit.
Too often, moving is a costly mistake. It’s different being a resident than a tourist.
In 2007, my wife and I moved from Portland to Southern Oregon. We made the mistake of buying a home when we moved. The market collapsed soon after, and it took over a year to sell our prior home. The job I had moved to turned out to be a financial nightmare, bringing in almost no income. Our new home lost value, and we lost a significant amount of money when we retired and moved. We could have avoided that if we’d rented first.
When I was stationed in Greece, I met several Americans who had romanticized notions about Greece, sold all their possessions, and moved there, thinking it would be paradise. After a year or two, they realized it wasn’t quite what they had imagined, and now they faced the expense of moving back to the States and starting all over again.
If it’s a possibility for you, consider spending a few months renting in the location you’re thinking of moving to. Get a taste of what it’s like to be a resident there before you make a final decision to move.
Alternatives: Aging in Place or Downsize
• Aging in Place. If your current home is paid off and suitable for aging, staying put can be a viable option. You don’t have to move when you retire.
Staying in place can be a great option. You’re comfortable with your home, you don’t have the expense of moving, and you’re staying close to your friends.
You can add aging-friendly upgrades, such as grab bars, lever handles, wider doorways, zero-step entry, and a low-maintenance yard.
• Downsizing. Moving to a smaller, more manageable home in the same area can be a good choice for some retirees.
What if your home has three levels? Will you be able to manage all the stairs as you age?
Couples: Decide Together
Couples really need to talk about this issue. Sometimes, each member of the couple has different assumptions about where they will live in retirement.
One might think they really want to live next to the ocean, while the other wants to live close to family. There may be disagreements. Take turns listing each of these factors:
• List your top five must-haves.
• List your top five nice-to-haves.
• List your deal-breakers.
Work to find a compromise that is acceptable to both of you. Look at some creative options.
Some couples, if they have the financial means, choose to have two homes—one where one partner wants to live and one where the other partner wants to live. They alternate residing in each house during the year.
Additionally, some couples have decided to have seasonal separations. The husband was a big skier and wanted to be around skiing all winter. The wife didn’t want to live in a cold climate. They decided that during the winter months, he would live in a skiing area, but the rest of the year, the two of them would live together in the climate the wife enjoyed.
A Decision Checklist
When deciding where to live in retirement, several factors come into play. These include:
• Proximity to family and friends
• Health issues and availability of medical resources
• Lifestyle and cultural fit
• Geography and climate
• Cost of living, including housing, utilities, groceries, and healthcare
• State taxes and their impact on retirement income
Don’t rush your decision.
Don’t act purely on emotion. Falling in love with an area and immediately moving there can be a disaster.
Consider and weigh all the factors to make the best decision possible.
AI Note: I wrote this blog post myself, using my own words and thoughts for the initial draft. I used AI only to suggest headlines, section headings, images, and text improvements.
Links to product pages on Amazon include a referral code, which pays me a small percentage of the sale when products are purchased. This helps to defray some of the costs of running this site. I strive to only include links to products I believe are worth buying.