When Moving in Retirement Becomes an Expensive Reality Check

The New York Times recently published a piece on the pitfalls of moving when you retire. (You'll find a link under the picture). However... there are certainly many delights too!

People imagine moving in retirement as celebratory event. The idea of settling down by a beach, golf course or other bucolic setting is so popular that it has become a cliché. When the reality doesn’t match the image, fixing or unwinding those regrets can be expensive — when it’s possible at all.

So, first, the pitfalls:

Mistaking Fantasy for Reality

People often don’t fully research what it would be like to live full-time in their chosen destination

Unexpected Costs

Inclement weather can be more than an annoyance. Stronger storms, floods and wildfires have driven up average homeowners’ insurance premiums 24 percent from 2021 to 2024.

An Uncooperative Market

Housing costs can trip up relocations in other unexpected ways. For example, if your current home doesn't sell and you already purchased a new one, the double expense can be a burden.

Health and Happiness

It's important to choose a place with good medical care and a community with fulfilling activities and events. Too many people who move in retirement don’t think about the challenges of making new friends, or starting over without a support system.

Priced Out of Going Home

Some people want to return to the place they left, but this isn’t always possible. Real Estate might have gone up on the home you sold and there are costs associated with buying your new home which can add up.

Avoiding the Pitfalls

Choose carefully.

Don't choose a new location because "you should" or because other people retire there. You still have a good 15 or 20 years to live. Be honest with yourself as to what kind of life you want and discuss it honestly with your partner.

Do a trial run. 

Even if you’re planning to move to a favorite vacation spot, being there as a resident rather than a tourist can be eye-opening. Spend, at minimum, three to four months there. And do it during the worst time of the year.

Build a better budget. 

Many people in expensive areas plan retirement moves to nominally cheaper places, but Mr. Shahin said anticipated savings often failed to materialize. Use AI bots (ChatGPT, Grok, Gemini...) to create a more comprehensive budget and to use local prices where you're moving. (As always, double-check the results, AI tends to hallucinate)

Consider long-term health care. 

You’re getting older, you’re aging and you do end up going to the doctor more often. Find out about the health situation in the 3-4 month run.

Ending on a positive note: The delights

Gentler living.

A lot of our neighbors have moved to the Carolinas, some have moved to Spain. In every case, there is one theme: gentler living. There is no rush, no pressure. Cities where most retirees move to offer good public transportation and are walkable.

Renewed energy.

A new environment stimulates your senses by presenting new opportunities on a daily basis. There will be new attractions to discover, new restaurants and cafes to try, new markets to visit... 

Break from the rut

With internet and e-learning platforms, any place today can become a learning center, but breaking away from the routine will allow you to take new courses with gusto.

For some retirees, this break from the rut will mean mentoring opportunities, or the ability to develop a consulting business.

Travel.

Many retirees buy a smaller retirement home and then spend longer time traveling. This might mean road trips in an RV, or spending a few months at a time in cities they've always wanted to discover... the break from the routine makes such travel much more enjoyable.

A real windfall.

Some people who have lived 15, 20 or 25 years in the same home will probably see a huge windfall as they sell their revalued home. This will make life much more pleasant. But consult your tax advisor.