Retirement brings many changes along the way. A big change may be deciding to relocate. If that is the case, there are numerous things to consider. They can include cost of living, state taxes, availability of medical facilities, recreational opportunities, transportation options, part time work and other concerns.
Retirement planning really needs to start long before the actual date of retirement. If you are considering relocating, you will want to identify what exactly is important to you and then do your research to make sure you find a place that checks off all the boxes that are important.
State Taxes are a real expense that can make a difference in your overall expenses. You will often hear people talking about moving to Florida once they retire. Initially, you might think it has all to do with the weather. However, another big factor is that Florida does not have a state income tax, and their state sales tax isn't too high. States like New York and Illinois both have state income tax and a higher sales tax. Paying a high rate in taxes can make a significant difference in your total annual expenses.
As of 2020, seven states levy no personal income tax
Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming
Two other states, New Hampshire and Tennessee, don't tax wages. They do currently tax investment income and interest, but both are set to eliminate those taxes soon.
What about Medical Care as you age? Prior to selecting the place to relocate, be sure to pay attention to accessibility to medical care. As we age, our medical needs tend to change. It's important to make sure that medical services are available where you live. Are the doctors in the area taking new patients? Are there cost-affective pharmacies available? And, where is the closest hospital located? If you were to need assisted living or nursing home care, check the ratings of those facilities, which is public information, to make sure they are up to par.
Is your new home close to an airport? When you first move to a new location, you may be able to drive anywhere you want. Years down the road, however, you may decide returning home for a visit would be easier if you traveled by air. But, how do you get to the closest airport? Are there smaller airports available that may make it easier to get to and navigate around? And, don't forget, you may have family and friends that want to visit you. It is important to know how they can get to your new location after arriving. Is Uber or Lyft available, rental cars, or can you pick them up? Getting to the airport in Orlando from The Villages, in my opinion, is not a real easy trip. However, you may want to even hire a private driver that you can count on when you decide to travel. Sometimes the actual communities have already figured that out and have services available. Just be sure to check it out prior to relocating if you think it might be an issue.
Retirement Communities are also an option for retirees and they cater to the needs of the residents in a pretty attractive way. Many of these communities have some great deals for folks who want to actually visit prior to relocating, to get a feel for what is available. You can usually visit for a few days, stay on the property and be invited to participate in some of the ongoing activities. The whole purpose is to highlight the lifestyle available if you decide to reside there at some point.
In Florida, we have a couple very popular locations. Sun City (they are in other states, as well) and The Villages are two of these retirement communities. My parents had a home in Sun City, and loved it. Sun City residences are located within the Sun City Properties, but many services like grocery stores and medical facilities are not within Sun City Retirement Community, itself. They are close, but are integrated into the local community. I found that a little bit of a drawback because it forced my parents to drive further and intermingle with the all of locals as well. Typically, that would not be a problem, but as they aged, it became more of an issue.
The Villages is the Largest Adult Community in the World and is located North of Orlando. The Villages are very self contained. Right within the community you will find grocery stores, hospitals, movie theaters, golf courses, pickleball courts, restaurants and more. It's truly a golf cart community that caters to all the needs of the seniors who live there.
For more information about other Retirement Communities, be sure to check out the link below.
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