8 Important Questions to Ask Yourself Before Moving Home in Retirement
Lots of soon-to-be retirees make plans to move home. Whether it’s to be closer to family or to spend their golden years enjoying a new country, 64% of retirees will move or anticipate moving after their working life ends. But, before you hammer a ‘For Sale’ sign into your lawn, you should ask yourself these 8 questions.
1. Can You Afford to Retire?
Thanks to dwindling pension plans, it’s hard to figure out if you’ll have enough monthly income to see you through retirement. According to The Employee Benefit Research Institute, just 21% of workers are certain that they’ve saved enough money for a comfortable retirement. And, a huge 50% haven’t even tried to work out how much money they’ll need.
If you fall into the 50% category, you might need the help of a financial adviser, or through your workplace retirement plan. To get an instant estimate, you can use a retirement income calculator. However, if you plan to factor in moving home, you would need much more than this estimated amount.
2. How Affordable is Your Dream Retirement?
It’s important to calculate just how much it will cost you to move. And, we are not just talking about house prices. Different states have different rules on retirement income, and there is also the cost of living to consider.
For example, with its famous Rocky Mountains and awe-inspiring views, Colorado is a popular choice. The state doesn’t impose taxes on Social Security and pension income up to $20,000 for retirees under 65 or on the first $24,000 for those 65 and over. As of 2016, the average median house price in Colorado Springs is $243,000. Is this an affordable spot for you?
Alternatively, Hawaii might be your dream destination. Nothing compares to living on the beachfront, basking in the warm weather. But, it’s an expensive place to live, and the average rent prices are three times more than the national average. Income tax also weighs in at a whopping 11%. So, before you are set on a destination, do your research and count your pennies.
