Moving may seem a welcome option for retirees.
You have worked for years.
Your decisions have been focused on your career.
You have constantly done the will of your superiors.
Retirement has come.
Now you are itching to move.
According to a recent Nasdaq article titled “Don’t Relocate in Retirement Without Answering These 5 Questions,” you should think long and hard about what you want and why before you move.
What should you consider?
Income Taxes.
In retirement, you depend on retirement savings, pensions, and Social Security.
Taxes will impact how much actually ends up in either you pocket or government coffers.
For example, thirteen states tax Social Security benefits.
Some states do not tax withdrawals from retirement accounts.
If you currently live in a state with no income tax, moving to another state could give you quite a shock.
Do your research and determine whether you can afford the new location.
If you are lacking in retirement funds, states with fewer taxes could help you significantly.
Estate and Income Taxes.
If you plan to leave your loved ones some of your estate, this is important to know.
Not all states have inheritance taxes.
Of those with inheritance taxes, some are greater than others.
Also, not all states have state estate taxes.
Some will have an estate tax, but have a lower threshold than the federal estate tax.
Part of maximizing your estate is taking these laws into account when deciding where to reside when you retire.
Fortunately, neither Kansas nor Missouri has an inheritance tax or a state estate tax.
Cost of Living.
An increase in the cost of living when you are on a fixed income can take a chunk out of your retirement.
If where you currently live is expensive, moving would be wise.
Transportation.
You may not always be able to drive.
Motor vehicles are costly to maintain.
Insurance can increase after certain ages.
Your health may bar you from renewing your license.
If you can walk where you need to go or there is public transportation, you could save money and even stay healthier.
Health Care.
Good health does not last forever.
As you age, your body will begin to face chronic issues.
Educate yourself on doctors, hospitals, Medicare policies, and even nursing home communities.
You will want quality care you can afford.
Although moving may seem appealing, you should not do so on impulse.
Do your research, run the numbers, and move forward with confidence.
Reference: Nasdaq (August 9, 2019) “Don’t Relocate in Retirement Without Answering These 5 Questions,”
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