Moving in retirement is a great opportunity for a fresh start. You can be closer to family, or further away if that's what you prefer, maybe somewhere with a better climate. But moving comes with its challenges, too.
You have to figure out where you want to live and how you're going to move all of your stuff. You could also experience some changes to your Social Security and Medicare benefits, so it's important to prepare for these in advance.
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How moving can affect your Social Security benefits
Moving within the U.S. shouldn't affect the Social Security benefits you receive, and moving to another country usually doesn't either. However, a few exceptions exist.
If you're retiring in Cuba or North Korea, the U.S. government will not send Social Security checks there. And if you retire in one of the following countries, you may have to agree to restricted payment conditions to continue receiving benefits:
- Azerbaijan
- Belarus
- Kazakhstan
- Kyrgyzstan
- Tajikistan
- Turkmenistan
- Uzbekistan
If you're unable to receive Social Security checks because you're living in one of these countries and you later move back to the U.S. or to a different country where you can get Social Security, you'll receive all the money the Social Security Administration withheld from you before.
The bigger concern for most Social Security beneficiaries is how moving in retirement will affect their taxes. Federal Social Security benefit taxes apply to all seniors with incomes over a certain amount. But if you move to a state with its own benefit tax, you could lose more of your checks than you had before. On the other hand, you might save money if you move out of a state with its own Social Security benefit tax to a state that doesn't tax benefits.
How moving can affect your Medicare benefits
Moving within the U.S. shouldn't affect Original Medicare. But if you have a Part D plan for prescription drugs or a Medicare Advantage plan, the move could cost you access to this plan. That's because these plans are offered by private insurers with specific provider networks.
That doesn't mean you'll just be without insurance, though. You'll qualify for a Special Enrollment Period, where you'll be able to view all plans available in the area where you're moving to and select the one you like the most.
Moving outside the U.S. usually means Medicare coverage is no longer available to you. You'll have to purchase new health insurance coverage in the country you plan to live in. You may be able to research some of this yourself, but it can also be helpful to reach out to other expats or organizations that help expats get set up in their new countries. They may be able to help point you in the right direction.
