Many people take the opportunity to relocate once retirement rolls around. When you're not tethered to a job or specific job site, it can be easier to pick up and move to a part of the country you're more interested in living in -- whether for the amenities like parks and theater, the climate, or the cost. You may also decide to relocate as a retiree simply to be closer to family and have more help and support nearby as you age.
But relocating in retirement is a big deal. So before you take that big step, make sure to tackle these key moves.
1. Research healthcare services and health plans in the area
Taking care of your health is essential in retirement. And you'll want a way to do that in a cost-effective manner, too.
That's why it's so important to research healthcare services and plans in your area before relocating. If you're thinking of signing up for a Medicare Advantage plan, see how many options are available in your new zip code and what their costs look like. Furthermore, take a look at how those plans are rated to get a sense of how satisfied enrollees are with their coverage.
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2. Research housing costs
You may find that housing is your largest expense in retirement, even if you're able to sell your current home and purchase a new one outright. So it's important to look into housing costs in your new location.
First, if you will need to buy a home and take on a mortgage, see what housing prices and borrowing rates look like where you're going, keeping in mind that mortgage rates are pretty high in general right now. Also, see what property tax rates entail, because you'll be liable for those taxes even if you don't need to finance the purchase of a home.
Also keep in mind that any home you purchase is going to need to be maintained. Now, this holds true whether you relocate or not. But when you move to a place with a different climate, for example, that could impact your upkeep-related needs and costs.
3. See if your new state taxes Social Security benefits
Ideally, you'll be entering retirement with some savings you've accumulated. But you might also become somewhat heavily reliant on Social Security benefits once you're not working any longer.
There are 12 states that tax Social Security to varying degrees. But it's worth noting that your benefits may not be subject to taxes depending on your income.
You also don't necessarily need to write off a state that taxes Social Security, because it might offer other perks and be less expensive overall. Rather, it's just important to know what taxes you may be in for so you can plan accordingly.
You may find that relocating is the right thing for you to do as a retiree. But don't just dive in. Instead, take plenty of time to research your new state of residence to make sure your move doesn't have negative financial consequences.
