When relocation in retirement is not an option, not what you really want. By Dick Quinn
We live in a small town in NJ, population 6,600. The median household income is $203,000, the median home value is $1,358,400 and the median property tax is $29,600. I feel like we live in a bubble and given these numbers are much higher than our state averages, which are third highest in the Country, I guess we do.
Between property taxes and HOA fees the minimum annual cost to live in our condo is $24,900.
We live here by choice, wanting to downsize and eliminate stairs a few years after retirement, but also wanting to stay in the same area - we live less than a mile from the house we had for 45 years. In fact, we live five miles from where I, my mother, grandparents and great grandparents grew up.
I knew long before I retired that relocating after retiring was never going to happen. Our roots and most importantly our family are here. We are very fortunate that all of our family are within an hour drive, not scattered around the country. We spend many weekends involved in family activities.
To see any significant decline in the above numbers, we would have to move out of NJ - way out. That means away from family and lifelong friends and that was never going to happen.
The other option was simply to move to our house on Cape Cod. The property taxes there are $2,800 a year, plus then there would only one home to maintain. I had that dream for awhile, but only a dream. Deep down I knew the reality.
As you see, there is a price to pay for our choices. We are fortunate to be able to make those choices, and not relying on relocation to make retirement affordable. Now you know why my views about retirement income are what they are, our expenses were not going down.
If moving to Florida or the Carolinas, as is popular in the East, or Arizona or anywhere sunny and warm is your dream, why not? Millions of seniors do just that.
From my perspective just do your best to assure it’s a real dream, not driven by financial necessity just to make your numbers and retirement date which you may come to regret.
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