It’s never a bad idea to save money for the future. But it’s best to save with your specific needs in mind, instead of simply “saving some when you can” and hoping for the best. The amount we save, especially for retirement, should be calculated ahead of time, so we can feel reassured our futures will be secure. Whatever you decide for your ideal retirement lifestyle will require different degrees of expense.
The big question that many future retirees face is whether to stay in their current home base, or to relocate to an ideally more affordable location. To begin weighing your retirement relocation options and the hidden costs that may come with them, ask yourself the following three questions:
- What Will the Cost Be?: Many cities throughout the United States offer an affordable cost-of-living for retirees. In your mind, you may have already picked your ideal retirement city, whether that be El Paso, Texas, or Lancaster, Pennsylvania. You may have a good sense of what daily life in this city will cost you. However, have you laid out and weighed all your options and expenses? You will want to save up enough to meet your anticipated annual living cost and take inflation into account. Think about how you might downsize in order to enable your most time and cost-efficient move possible and save accordingly.
- Will My Healthcare Needs Be Met?: Another important element to consider when creating your retirement savings plan is your future health. Whether you are considering moving across town or to a different state, it is important to remember that as we age our health needs will change. Take time to find out what the cost of access or proximity to good, affordable healthcare facilities will be. You also want to assess your health-insurance coverage and learn more about your options with Medicare. When saving for this aspect of your planning, it is also important to decide what other insurance policy changes you may need to make, in conjunction with your health requirements.
- What Is My Emotional Cost?: We shouldn’t underestimate the value to both our physical and mental stability that a supportive group of friends and family can offer. If we decide to relocate in our retirement, would that entail an expensive plane ticket to take us back to our loved ones? For some, proximity to family will be an important consideration in their retirement planning. Even if we think the cost-of-living will be much cheaper in another state, we may decide the emotional expense outweighs the affordability benefit.
Whenever possible, it is important to increase our savings each month. The future is always uncertain, no matter where we live, so build the secure, relaxed retirement you deserve! To learn more about retirement, visit the Syncis blog at www.syncis.com/blog/.