It’s one of the most basic questions people ask themselves when they start planning retirement: Where am I/are we going to live? This question breaks into two major parts: geographic location and type of abode. Here are some questions and thoughts to consider while making this major decision.
Geographic location. Do you think you would like to move to a different location?
If so, list some of the areas you would consider and a bit about why you can envision living in each place.
Often folks consider moving closer to their adult children and grandchildren. If this is you, ask yourself how likely is your family to stay put. I know of several cases where the parents moved to be closer to the family only to have one of the parents transferred to another state. Do consider whether you would want to live in that area if your family were not there. On a similar note, real estate agents at the beach say they frequently sell homes to retirees who want to stare at the ocean and have a place for family to visit. In a few years, that home is back on the market as the buyers find that their families are busy and can’t visit as often as they thought they would.
Think about the type of life you want to have in terms of volunteer or paid work, hobbies and exercise opportunities as you consider location. Explore how easy it is to find a health care provider that accepts new Medicare patients. How easy will it be replacing your current social network – can you place yourself in a position that offers many chance encounters for new friends and relationships?
One of the best ways to figure out if you want to live in an area is to test-drive a location. A smart idea may be to “try before you buy.” It is common for people to retire somewhere they’ve been on vacation but the two experiences can be quite different. Renting a home for a year lets you get to know the area in all its seasons in terms of weather, culture and convenience. Even if you don’t want to spend a year as a renter, you can stay in an actual neighborhood for a few weeks for months to see how living in the non-resort part of town suits them. Even if you know for sure this is the location for you, renting a place when you first move there helps you become more familiar with various neighborhoods and home prices before you buy.
Type of abode. Should I/we stay in our current home or move to a different type of dwelling?
Do you like where you are and, like many others, hope to “age in place.” Many folks want to remain in their current homes and neighborhoods. Your analysis of this option will include the cost and feasibility of remodeling your home – widening doorways, installing ramps and grab bars, making cabinets more accessible, etc. What are your plans for extensive travel and how easy is it to leave your home and yard unoccupied during your absences? Our friends moved into a townhouse condominium complex where yard maintenance is provided so they can simply lock the door and travel several months each year.
Do you like your community but want to move to a different type of dwelling – perhaps a smaller home on one level, a condo downtown or a continuing care community? If you plan to move to a smaller home, next month’s article will offer tips about downsizing.
You might want to become familiar with the costs, benefits and restrictions of investing in a continuing care community. Talk to persons who live in one. The basic idea is that you have an initial investment in an apartment or a home – but that you do not get that money back. The unit will often be remodeled to your specifications. In addition to the upfront cost, there is a monthly fee. Clients often find that the monthly fee is less than their current monthly costs as that fee covers real estate taxes, cable, lawn service, house cleaning, exterior maintenance, health club memberships and typically a dining allowance. Another advantage is the built-in ability to move into a higher level of care if needed.
Are you on the same page? If you are part of a couple, don’t assume your partner has the same thoughts as you do about where to live in retirement. Sometimes each member of a couple gets to retirement assuming “things” are going to be a certain way but neither has tried to find out if their partner’s vision about where to live is the same. Once you know if your visions are the same or not, you can start exploring your options and working toward agreement.
