Did you know Lancaster, Pa. was recently named the 2nd best place to retire by U.S. News & World Report? The small, rural city, located in Univest’s backyard, is not a place that most typically think about when discussing retirement. While it’s certainly not a sunny beach town, it does check many important boxes pre-retirees should consider when deciding where to spend their retirement.
When discussing retirement and a potential relocation, it’s easy to get caught up in the fun things like what town has the best restaurants or where to catch the best shows and activities. Even though these things are important for a good quality of life in retirement, there are important financial factors to keep in mind that could have an impact where you end up in retirement. Things to consider:
Many retirement locations are attractive to people because they have lower or, sometimes even zero, income tax or sales tax, however, keep in mind other taxes these states take. Retirees’ lifestyle and spending patterns may be affected by these taxes and that’s something to consider during the decision making process.
Access to healthcare
Proximity to health services may not be the first thing that comes to mind when dreaming of retirement, but, it’s an aspect of retirement that will grow in importance as the years pass by. Along with proximity of healthcare, consider the quality of doctors and services in the area.
Housing is a major cost for retirees to consider. With a fixed amount of income in retirement, pre-retirees should aim to find housing where the cost is less likely to change and remains as stable as that income. Renting is sometimes attractive to retirees in case they need to move quickly to be closer to family, healthcare, etc. However, the flexibility of renting can sometimes be problematic in that landlords can raise the price of rent or even ask tenants to leave with little notice.
Cost of living
The cost of living varies widely and has a large impact on one’s lifestyle. Having a type of lifestyle for retirement in mind is key when determining your retirement location to ensure you are able to afford the lifestyle you want in that location. For example research how easy it is to get around, transportation expenses, what the social scene is like and how much local restaurants and leisure activities cost.
Cost of staying in touch
Many retirees think when they relocate that their family and friends will travel to visit them. Unfortunately, that’s not always the case. Many find themselves spending more than they planned on travel to visit family, stay in touch with friends and even babysit grandchildren. These traveling expenses add up and some even maintain two homes which means two mortgages. Before moving far away from loved ones, it’s important to think further down the line.
Considering where to spend your retirement is a big decision. It’s more than sunny beaches and local attractions, and we’re here to help you navigate the many factors that should go into that decision. Please feel free to reach out to us at 215-721-2112.
Securities and insurance products are offered through Univest Investments, Inc., member FINRA/SIPC and a licensed insurance agency. Investment advisory services are offered through Girard Partners, a Univest Wealth Management Firm. These affiliated companies are licensed subsidiaries of Univest Corporation of Pennsylvania. Products and services offered are not FDIC insured, are not a deposit of or bank guaranteed, and are subject to risks, including possible loss of any principal amount invested.