Careers can keep people in a certain city for a long time, and that's not always a bad thing. But sometimes, you get to retirement, and you just want a change. Maybe you're sick of all the snow, and you want to move somewhere warmer. Or you're thinking about getting closer to friends and family.
These are all valid reasons to want to move in retirement, but they might not be the most important factors to focus on. Here are five factors Americans 55 and older ranked as the most important when choosing a new home, according to The Motley Fool's research on the best states to retire in .
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1. Quality of life
Quality of life can seem a bit nebulous at first. Here, it refers to what kinds of resources and activities an area has. In our survey, quality of life included the following factors:
- Prevalence of retail and dining options.
- Outdoor activities.
- Cultural activities.
- Spiritual communities.
- Organized activities for retirees.
- Civic organizations.
Think about which of these are most important to you, and then look into the options available in the area you plan to move to. It may help to do a dry run where you visit the city for a week or two and try some of the activities for yourself.
2. Housing cost
Housing remains the biggest recurring expense for most people, even in retirement. If you're new to the area, you'll have to either buy a new home or rent a place. If you're renting, this will be a regular part of your monthly budget, and costs could rise over time, so you must plan accordingly.
If you're buying a home and already have substantial equity in your existing home, you may not have to worry about a mortgage in retirement at all. Or you may only have to borrow a little. However, housing costs will still affect the size and construction of the property you can afford.
Check out houses for sale in the city you plan to move to to get an idea of their current prices. Keep in mind that costs can rise faster in some cities than in others, so you may need to repeat this process as you get closer to retirement.
3. Healthcare quality
Quality healthcare is especially important to retirees, who generally face greater health issues than younger adults. This can be difficult to assess on your own, so you probably want to rely upon online hospital ratings and ratings of state healthcare quality, in general, to see how your new home matches up.
You may also want to check out the nearby hospitals and doctors' offices to see what types of insurance they will accept. Most should take Medicare, but if you have a Medicare Advantage or Medigap plan, your options may be slightly more limited.
4. Crime rate
High crime rates aren't ideal for obvious reasons. They can pose significant dangers to residents and, in the case of theft, they can cost you a lot of money. Do some digging online to learn more about crime rates in the area.
Consider ways to mitigate certain types of crime, if possible. For example, if auto theft is common in the area, install an alarm on the vehicle and consider purchasing a property with a garage so you can better conceal the vehicle from thieves.
5. Healthcare cost
Healthcare costs will eat up a significant amount of your total retirement savings. Even with insurance, you'll still need to save money on your own. It's tough to estimate how much you'll need since you don't know what your health will be like. However, learning more about the healthcare costs in the area may help you get a baseline.
For example, if healthcare costs are very high in that area, you may want to build a larger cushion into your retirement savings to cover these expenses. Keep in mind that if you only have Original Medicare, you'll have to cover some bills completely out of pocket.
These aren't the only factors to keep in mind when choosing where you want to retire. But they're definitely worth weighing as they'll have a significant effect on your budget and lifestyle. If you're a ways off from retirement, be sure to revisit some of this information as you get closer to making your move to ensure nothing major has changed.
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