15 Questions to Ask Before Relocating in Retirement

Where you live in retirement can have a huge impact on your finances. You may not want to stay in your current home or town once you're no longer tied to your job. But before you decide to make a move, you need to ask yourself a few key questions to make sure a change in locales is the best choice for you.

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If you're a homeowner, you'll need to find a buyer for your current property. Since the housing market is a seller's market right now, that should be easy for most people.

However, if your house is older and needs a lot of cosmetic updating or if there are other issues with it, finding a buyer at a fair price might be a challenge.

If you'll struggle to sell your home for enough money to cover relocating costs and set up in a new place, it may not be a good idea to relocate in retirement at this time.

Most states don't tax Social Security benefits, but 13 states do. If you're moving to a new location that may take some of your retirement benefits in taxes, this can significantly reduce the income available to fund your retirement.

Be sure you know the tax rules before you decide where to move and choose a place that has favorable policies in place for seniors.

It's not just taxes on Social Security you have to worry about. Chances are good you'll have other taxable income as well, such as distributions from a 401(k) or IRA.

State income tax rules can vary dramatically, with some states taxing residents -- including retirees -- at high rates and others imposing no personal income tax at all.

When you're on a fixed income and every dollar counts, picking a location that leads to a bigger tax bill could be a huge mistake.

ALSO READ: How Will Your Retirement Benefits Be Taxed?

As you enter retirement, you'll want to consider the legacy you'll leave behind. If you hope to leave plenty of money and property to heirs, you need to consider how your home state will tax your estate.

While there's no estate tax in some locations in the U.S., inheritance and estate taxes are charged in others. You may not want to plan a move to some place that's going to take some of your wealth after you pass on.

Costs for the essentials vary dramatically across the United States. Unless you have ample retirement income and don't need to worry about living on a tight budget, chances are good you'll want to pick a retirement location where you can cover the basics easily without needing a fortune in annual income just to be comfortable.

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If you move, you'll need to find a new place to live. This could be a house or an apartment. Depending on your preferences, check the rental or home market carefully.

If there's not much inventory, you may not be able to find a property you like. Or, it may be very expensive to get the right place for your needs, which could strain your budget.

Think carefully about whether you can find a new home where you can age in place and pay an affordable price when you choose where to move to as a retiree.

If you're going to remain a homeowner after relocating in retirement, you need to take a close look at local property taxes in locations you're considering moving to.

Pay attention to what these taxes cost now, as well as how much they've increased in the past and are likely to go up in the future. If property taxes are too high, you may need to pick a cheaper place to move in order to avoid draining your nest egg or putting your home at risk.

As you get older, driving may become more difficult and less safe. Living in a walkable location where amenities are within easy reach could enable you to remain independent for longer.

A walkable area could also allow you to eliminate one or more cars in your household, which can provide huge savings and free up retirement income for other things. So, consider prioritizing walkability when deciding where to move as a retiree.

The sad reality is that seniors often require more healthcare services than younger people.

When you're thinking about where to move, pay attention to the medical services in the location. Is there a top-rated hospital where you could get specialist care if you need it? Are there plenty of primary care physicians and doctors specializing in issues affecting the elderly, such as arthritis?

ALSO READ: Americans Are Underestimating Their Senior Healthcare Costs -- and Could Wind Up Broke in Retirement Because of It

Giving up work means losing one of the easiest ways to make social connections. You'll need to maintain a strong network of friends and loved ones to stave off loneliness once you no longer have colleagues to see each day.

So, before you move, consider whether there are people close by who care about you. If you're intending to relocate to a place where you don't know anyone, you may be able to build a network from scratch -- but this can be more of a challenge in your older age.

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Seniors tend to cluster in certain parts of the country. If you want a strong community, it can pay to look for a place where lots of retirees go.

Finding an area with a large senior population also increases the chances that there will be top-notch health providers and plenty of activities targeting older audiences. This can help improve your quality of life as a retiree.

There's wide variation in the culture and leisure activities available in different locations across the U.S.

If you like hiking, for example, you may want to relocate to an area where there are plenty of parks and trails. If you prefer theater, then you may be interested in a whole different type of environment.

Make sure the area you're relocating to is a good fit for your interests.

If you plan to travel as a senior, finding a location within easy driving distance of an international airport will make your trips cheaper and your life easier.

After all, you don't want to have to drive hours every time you plan to go on a trip -- especially if you intend to hit the road often to make the most of your time in retirement.

Moving can be expensive. Before you decide to relocate as a retiree, make sure you have a plan for how to pay for it.

You don't want to take too much money out of your investment accounts to fund your move so you may need to wait and save up to afford the up-front costs.

ALSO READ: How My Long-Distance Move Cost $15,000

Finally, you should consider why you're moving. Some people relocate for financial reasons to find a cheaper place to live. Others would prefer to live close to family or have better weather.

By thinking about your motivations, you can narrow down your search for a new place -- and can make sure that the move is actually likely to help you accomplish your objectives.

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By answering these 15 questions, you can decide both if a move is right for you and whether the new location you're considering will be a good fit.

Your choice can affect how far your income goes and how happy you are as a retiree. So, take the time to consider each of these answers carefully to maximize the chances you'll end up happy with your relocation decision in the end.

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