Let’s revisit the pros and cons of relocating upon retirement
A few weeks ago I wrote about relocating upon retirement and concluded it isn’t for us.
This summer we are getting to test that conclusion. We are spending the entire summer at our place on Cape Cod, which means several months away from our routines, church, friends, golfing buddies and mostly family. I suppose if we moved here we would become accustomed to many things, but not being six hours away from family, let alone a three hour plane ride, if, as many friends have done, we moved to Florida.
Our daughter and family came for 10 days, but they left - with their 80 lb dog who I also miss. One son and family are coming in August for a week. Two other families don’t come because they don’t like the drive.
Relocating out of financial necessity is one thing as is the quest to be near family, but beyond that it takes serious consideration in my opinion.
I’ve heard people say it’s about the weather, but the reality is no matter where you go, there will be weather issues of one kind or another at some point in the year, cold, snow, extreme heat, (it’s 109 in Phoenix as a write this and 96 in Lakeland, FL) hurricanes, tornadoes, drought - except maybe Hawaii, but then you might find lava in your backyard 😢
Several friends and relatives have sought the best of both worlds. They have homes in NJ and condos in Florida and have become Florida residents thus avoiding NJ income taxes, but increasing the weather risk and paying outrageous premiums for property insurance. One friend just sold his condo in Florida after the ocean spent time in the building lobby for the second time - but others didn’t seem to care, it sold quickly.
One person in NJ told me they moved to Florida to avoid inheritance taxes, but neither state has such a tax applicable to family members and charities. I hope that wasn't their primary goal.
Moving is a big deal anytime, but relocating to another state on top of the life changing event of retirement is a bigger deal I would think.
Roughly 25% to 33% of retirees move after retiring, according to studies by the U.S. Census Bureau and retirement-focused surveys (Center for Retirement Research at Boston College).
The majority of retirees who move tend to stay within their current state, often downsizing or moving to more affordable or accessible housing. About 15% of movers choose to relocate to another state.
What are your thoughts, plans about relocating upon retirement? And if you have already relocated, how has it worked out? Was it the change you expected?
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