For better employment and educational opportunities for their children, many people spend their working years in a more expensive section of the country. Yet, after you reach retirement age, you will hopefully no longer be concerned with any of these issues. So, consider relocating to a place where living expenses are lower.
Thus, you’re expecting $2,000 monthly in Social Security benefits and another $2,000 monthly in withdrawals from your savings. Moving to a region with higher living costs may mean that more than $4000 per month is needed. This may seem like little, but it might provide a reasonably comfortable existence in a region of the United States with lower living costs.
One potential benefit of moving after retirement is the ability to sell an expensive home, buy a less costly one, and pocket the difference between the two. Besides, you never know if that course of action won’t be more lucrative than you first anticipated.
Precisely what would you gain from giving up your current residence?
According to a recent study by Vanguard, retiring homeowners can benefit from selling their homes and using the proceeds to secure their financial futures. The survey concluded that an average older homeowner might get nearly $100,000 from their home by moving to a lower housing area.
Now obviously, there are exceptions to the $100,000 rule. The data and housing prices used to create Vanguard’s estimate are current as of 2019, and property values are generally higher now than four years ago so this approach may pay off handsomely for you.
So, your home is currently worth $400,000, and you own it outright. It’s easy to imagine how you could make a tidy sum if you sold the house and relocated to a place where you could purchase a similar one for $300,000. The money you get from selling your property might be put into savings or invested in increasing your overall financial stability.
Is it time for you to retire, and if so, is moving the best option?
Leaving a more costly housing market or region of the country for one with lower housing costs could have significant financial benefits. But, there are other than monetary ramifications of moving in retirement.
If you have grown children or grandchildren, they may be several hours drive away when you relocate. As an added downside, you can be cut off from your usual support system and friends.
When you move, you may no longer have easy access to the things that make your life more convenient right now, such as the stores and services you frequent, the doctors and hospitals you visit, and the public transit you rely on. You should think carefully about these things before making a decision.
Downsizing while remaining in your current home is an alternative to moving in retirement. You may make less money if you sell your house and buy a much more affordable one in a different market. You don’t have to leave a great region that offers you a lot to make money.