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Relocating for Retirement? Here are Five Key Factors to Consider Before you Move

Written by Posted On Friday, 10 February 2023 11:17

For many, relocating for retirement can provide a needed change of scenery, reduce the cost of major expenses, and offer a lifestyle more conducive to retirees. While circumstances vary depending on everyone’s unique priorities, some key factors to keep in mind when deciding where to move include: choosing an area with low insurance costs, affordable taxes, reasonable housing prices, a strong healthcare system, and a pleasant lifestyle.

 

Low Insurance Costs

Let’s face it: between homeowners, auto, and health insurance, retirees certainly have quite a bit to consider in added insurance costs. When it comes to homeowners insurance, stick to cities with milder weather patterns and avoid states like Florida and California that experience severe weather events, which drive up rates. It is also important to keep in mind that areas with less crime will offer lower auto insurance, as those communities are at reduced risk of cars being broken into, damaged, or stolen. A few US cities that offer low car, health, and homeowners insurance include:

  • Mobile, Alabama
  • Knoxville, Tennessee
  • Myrtle Beach, South Carolina
  • San Antonio, Texas
  • Cheyenne, Wyoming
  • York, Pennsylvania 

 

Affordable Tax Rate

In addition to insurance costs, taxes can take a large portion out of retirement income, so before relocating to a new city, research the area’s property, sales, and income taxes. States with favorable tax breaks for retirees, or states that provide a credit for a portion of pension income, include Mississippi, Nevada, and South Carolina, among others. 

A significant portion of retiree’s income normally comes from 401(k) distributions, and just like any other income, this is normally taxed. Choosing to live in a state with low income taxes will be beneficial in this case, though it is important to keep in mind that a few states do not tax 401(k) withdrawals.

 

Reasonable Housing Prices

Housing is a major expense in retirement, so finding a community with reasonable housing prices will help keep more money in your pocket. Take some time to weigh the pros and cons of buying vs. renting a home, as renting may outweigh the monthly cost of paying property taxes, utilities, and maintenance. If buying a home is preferred, according to HomeBuyer.com, states with some of the lowest housing prices in 2023 include:

  • Pennsylvania (median price of home: $180,200)
  • Texas (median price of home: $172,500)
  • South Carolina (median price of home $162,300)
  • Michigan (median price of home: $154,900)
  • Iowa (median price of a home: $147,800) 
  • Alabama (median price of home: $142,700)
  •  

Conducive Lifestyle

Expenses are not the only factor to consider when relocating for retirement – lifestyle is important as well. In retirement, many prefer a laid-back pace. Who wants to deal with crazy traffic and stressful cities? You’re retired after all! When weighing your options, consider the quality of the roads, the availability of public transportation, and the proximity to major city centers.

Cold weather also brings a lot of stress, with ice and snow increasing the chances of falling and causing an injury. It is ideal to live in areas with warmer temperatures to avoid the dangers that come with icy weather. Not only that, warmer weather offers the opportunity to spend more time outdoors throughout the year. 

 

Strong Healthcare System

Finally, a strong healthcare system is of the utmost importance during retirement, including access to quality hospitals, clinics, doctors, and medical facilities as well as home healthcare services and transportation to medical appointments. Before settling on a new city to relocate to, research the availability of specialized medical services and the proximity of medical facilities. The closer to doctor’s offices and medical facilities, the easier life will be.

 

While there will be trade-offs in any location, evaluating these key factors can make a considerable difference when deciding where to retire and help identify a community that supports your quality of life. Congratulations on your retirement! 

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Jerry Pinkas

For more than 36 years, Jerry Pinkas has been involved in all aspects of the real estate industry. From investing in real estate to managing rental portfolios, Jerry has in-depth knowledge and experience in owning, managing, and selling real estate. With a love for the beach and ocean, he continued to invest in numerous real estate properties in Myrtle Beach before deciding to launch his boutique brokerage, Jerry Pinkas Real Estate Experts, in the coastline community in 2005. A consistent top producer, Jerry and his team have represented over 2,000 buyers and sellers. For four years in a row, Jerry Pinkas Real Estate Experts was ranked in the top 250 of RealTrends’ The Thousand as featured in The Wall Street Journal. Jerry brings years of experience in real estate, excellent customer service, a commitment to hard work, and dedication to the industry, which provides a tailored experience to every client, resulting in long-term relationships. He is an active member of the Coastal Carolina Association of Realtors and National Association of Realtors. Jerry has built an impressive social media following by creating the #1 YouTube Channel (for real estate) in Myrtle Beach where he shares tips and advice on moving, investing and retiring in the area.

https://www.homeguidemyrtlebeach.com/

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