Should You Move After Retirement
Emily Brandon
State of the U.S. Housing Market
(c) William L. Brown
The recession is keeping many (happily) rooted, but the resourceful can still relocate
When physician
Like Brown, the majority of retirees are staying put after leaving the workforce. In 2008, the overall migration of Americans reached its lowest point since World War II, according to a recent
The poor economy and declining home values are increasingly keeping retirees rooted. Traditionally, many seniors have financed their move by selling their house. "They are having difficulty selling their home, or their housing value has dropped so much that they do not want to sell it for the lower price," says
No place like home. Many employees retire where they spent their final working years. No doubt, it's comforting to know the best mechanic in town, keep your dentist, and run into friends you've known for years. People who need to continue working during the traditional retirement years may also find it easier to land a part-time job with the help of their network of local contacts.
Of seniors who did change places in 2008, most stayed in the same state and the same county. Only 486,000 Americans took up residence in a new state, and about 89,000 people ages 55 and older moved abroad. Not surprisingly, the likelihood of relocating decreases as people age. While 5.5 percent of those ages 50 to 59 moved to a new city or town, just 3.9 percent of those ages 65 to 74 relocated.
Sometimes, even those who don't move far find their hometown ties so strong that they eventually return.
Relationships with grandchildren are another common reason retirees don't consider far-flung destinations. Relatives can also help out with yardwork or transportation to the doctor's office--small tasks you would otherwise have to pay someone else to perform. Just over a quarter of Americans ages 51 and older who moved between 1992 and 2004 did so to be near children or other relatives, according to a recent analysis by the
Making the switch. When you are no longer tied to a job, there's plenty of appeal in choosing your own corner of the globe. Even if money is an obstacle to relocating, you may be able to make it work. Choosing a lower-cost locale is one option--and in some cases, it can give your nest egg a boost. "If you sell an expensive apartment in
Another way retirees can afford a change of scenery without breaking the bank is to consider low-tax places to retire. "The pattern of retirement mobility usually goes from expensive places to cheaper places, and lower taxes is a big plus," says
Clearing the hurdle of finding a destination that makes financial sense is the hard part, but it's not the only challenge. Your first priorities will probably include things like finding a place with a low crime rate and access to high-quality medical facilities. But you will also need to forge new connections with friends and associates. "You have to cut social ties [from your former community]," cautions
The reality is that most Americans will retire among friends and relatives in the town they already know, which is predictably comfortable and likely to keep their nest egg intact. But some still strive for retirement that's more of a permanent vacation. With a little creativity and flexibility, that can work for almost any budget.
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Real Estate - Should You Move After Retirement
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