Many of the 10,000 Americans retiring from the workforce each day wonder what they should consider when planning to retire and move. Thinking about finances, health, lifestyle, and other needs is crucial when preparing for this all-important phase of life. Check out the seven things that are of the greatest significance when planning to retire and move.
Calculate How Much Money You’ll Need in Retirement
Reviewing your finances and planning for retirement can feel overwhelming. You may have questions like: How much money should I save? When can I afford to retire? How quickly will I run through my money during retirement?
To feel more in control of your future finances, calculate how much money you will likely need to live comfortably in retirement. Check out the three helpful tips below:
- Distinguish what your needs will be when you’re retired. Include your basic needs, like food, housing, and other essentials. Next, move on to discretionary needs like travel, entertainment, and extra purchases.
- Consider your current savings. Most financial experts recommend saving 15% of pre-tax income for retirement.
- Use an online retirement calculator to help you figure out if you are saving enough.
Assess Your Health
There are several reasons why you should assess your health before retirement. First, you need to determine if you can live independently. Certain health conditions require assistance from healthcare professionals, caretakers, and family members.
If you can live independently, think about your abilities. For instance, some retirees can live alone but need to avoid properties with stairs. Others are more active and choose to live where there is lots of outdoor adventure. Whatever the case, evaluating your health and circumstances is vital.
You should also assess your health to estimate your healthcare costs during retirement. While you will likely get Medicare coverage when you turn 65, you still may have healthcare costs like supplemental insurance coverage, deductibles, and copays.
Consider a Reverse Mortgage
Reverse mortgage loans allow qualified homeowners to access a percentage of their home’s equity in exchange for cash, which can help those heading into retirement. When getting a reverse mortgage, homeowners do not have to surrender the home’s title, sell the property, or move.
These loans differ from traditional mortgages, where the borrower pays the lender monthly payments. With a reverse mortgage, the financial institution makes payments to the homeowner instead. Over time, the home’s equity decreases, and the homeowner’s debt increases.
A reverse mortgage may be a good fit for you if:
- You are at least 62 years old.
- You don’t want to move out of your current house.
- You have significant expenses later in life.
- You have a large amount of equity in your home.
- You don’t have heirs who want to inherit your property.
Quick note: We specialize in reverse mortgages and are happy to answer your questions!
Think About Downsizing Your Home and Belongings
When people retire, they often choose to downsize their homes and belongings. Doing so reduces expenses and maintenance responsibilities, leading to a more carefree experience. Here are a few great tips when considering downsizing:
- Take note of your financial and lifestyle goals when planning to downsize. What do you plan to accomplish when downsizing?
- Look at your schedule and upcoming plans to determine the best time to downsize your home and belongings.
- Consider what your current home is worth and how much money you will save if you downsize.
- Ensure your new house can meet all your needs and many of your wants.
Research New Areas That Will Fit Your Needs
As you plan to retire and move, don’t forget to research different areas to ensure they fit your budget and lifestyle preferences. Proper research is crucial when choosing a new neighborhood, whether you’re moving across town or the country. So, what’s the best way to research various areas when considering a move?
First, if the area is local to you, do a bit of “hands-on” research. Talk to people who live there, walk through the neighborhood, visit local coffee shops, read community newspapers, and “live a day in the life” of your retired self.
If you plan to move further away, you will want to approach your research differently. Browse social media to get a sense of what is happening in the area. Use other online resources to research crime rates, walkability scores, cost of living estimates, local amenities, and property value trends. You’ll find the perfect neighborhood for you in no time!
Establish a Timeline For Your Move
Decide when it will be best for you to move. Moving into a new home requires a lot of coordination for things to go smoothly. For instance, if you hate the winter months, consider moving when the weather is milder – perhaps in springtime. Think about upcoming events like weddings or holidays and finalizing work duties, which will better help you establish your moving timeline.
Three months before your planned move, begin to declutter your home and purge your belongings. Purchase your packing supplies and create your moving budget. About two months before your move, research moving companies and start to coordinate all moving details. About a month before you move, notify your utility company and other service providers about your upcoming move. Lastly, pack your belongings and prepare for your new lifestyle!
Say Hello to New Adventures!
Now that you’ve got your retirement finances in order assessed your health, downsized, found a new neighborhood, and planned your relocation, it’s time to move! On the other side of this transition awaits doing more of what makes you happy.
Are you looking for ways to experience more adventures during retirement? Check out this exciting list of 25 fun things to do in retirement.
Keep this helpful article handy and refer to it as needed if you are planning to retire and move soon. And as always, we are here to assist and empower you throughout your transition. We look forward to discussing your options soon!