Contributed by: Sandra Adams, CFP®
One of the issues for most retirees, once you have determined that you are ready to retire and can afford to do so, is where you want to live in retirement? This, of course, is a loaded question. There are so many factors that go into making this decision, and it is as much emotional as it is financial. I could certainly write a detailed commentary on this topic, but here we will provide some bullet points to provide some issues and decision points to consider.
Location, Location, Location. For the majority of people, the most important decision in making the retirement living decision is the location. Will you remain in your pre-retirement community that you are familiar with? Where are your friends, connections and social contacts? Or will you make a change, perhaps to a different or warmer climate? To a more rural setting? Or maybe closer to the city where health care, transportation, resources and cultural activities are more accessible? You may decide to move closer to family at this point in your life — this may be a dangerous proposition — as growing and maturing families tend to move again just as you move to be near them, leaving you again stranded in a place where you know no one. You may find that it is more important to find a location where you can be near friends that you can socialize with, that you have commonalities with and that will provide mutual support.
Once the location is determined, the physical space becomes important. Will you stay in the same home you’ve always lived in and “age in place”? If you decide to do that, it may become necessary to take a good hard look at your home and make sure that it is equipped to be safe and easy for you to live in for the next 20 – 30 years or so of your retirement, if that is your plan. And if you truly do wish to stay in your own home to age (according to a recent survey by the National Council on Aging, 9 in 10 seniors plans to stay in their own home to age), you have to plan ahead to make things as safe and accommodating for yourself and your spouse as possible, so there is not a need for you to need to move to an assisted living or nursing care facility in the unfortunate case that you have a medical emergency and your home is not equipped for you to stay there.
For those who don’t desire to stay in their pre-retirement home, there are endless choices:
You might decide to downsize to a smaller home, condo or apartment.
You might choose to move into a senior-only community so that you can associate with people that are in the same life situation.
You might choose to live in a multi-generational planned community.
You might choose to live in a shared home situation — think of older adults sharing the same living space, expenses, and providing support and resources with one another (circa the Golden Girls).
You might decide to move in with or share space with family members.
So, how do you go about making your decision about where and in what kind of house/housing facility to live in retirement?
Develop your criteria – What kind of climate are you looking for? How active do you want your social life to be? What kind of access do you want to health care and other facilities? Make a list and search locations that fit your criteria.
Identify neutral professionals to guide you
Do a trial run
Consult your family
Put together a transition team
To move or not to move, that is the question. And even making not to move — aging in place — does not mean that there are no choices or changes to make. But if you do decide to make a move, it is a process that takes planning, and one that should not be taken lightly. Give the process serious consideration — it is a large part of your potential retirement planning picture.
Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.