11 Mistakes Retirees Almost Always Make When Relocating

Regardless of how many moves you’ve made throughout your lifetime, there’s one more critical move you may be considering: relocating to where you’d like to retire.

Whether it’s a dream destination you’ve seen once or a cozy spot that will stretch your retirement savings, there’s a lot to consider when deciding where to spend your golden years. 

Here are major mistakes to avoid while you map out your perfect retirement destination.

When planning for retirement and picking a forever home, many people fail to fully think through the expenses involved in a big move.

Although the destination itself might be affordable, a cross-country move may not. If you plan on retiring in Florida but live far away, you should consider what it requires financially to get there.

HomeAdvisor says most people spend between $2,606 to $6,553 on a cross-country move, depending on how much stuff they have, how far they go, and how much help they hire. That doesn’t mean a long-distance move like Florida can’t happen; it just means you’ll need to plan for it.

Although you might think a house is perfect after a visit or researching online, it’s important to spend some real time there before deciding to relocate. 

Taking your time to get to know a new place will not only help you decide whether it’s a good fit, but it will also help you pick precisely where in that new town or city you might like to live.

Spend some time exploring various neighborhoods or apartment complexes. If you pick the wrong neighborhood or the wrong house, you may face yet another move in the near future. Buying and selling too quickly will likely cost you more, so you’ll want to feel good about the exact house or apartment and its location.

Unlike those who may decide on a retirement destination without considering the cost, there’s also such a thing as going too far in the opposite direction — that is, picking the most frugal place to retire without considering your desired quality of life. 

Just because budgeting becomes more important in retirement doesn’t mean you won’t want to maintain a particular lifestyle, hobbies, or activities.

Maybe you enjoy taking long bike rides or having access to good natural grocery stores. Start by making a list of your lifestyle must-haves, and then make sure the places on your list of possible locations meet those requirements. Retirement should be affordable, but it should also be enjoyable.

Maybe you’ve been to a particular town in summer and fallen in love, or you’ve fallen in love with one of the cities that shine in the shoulder seasons, but what’s that place like the rest of the year?

The only way to find out is by spending a bit of time in your dream destination during every season. That means seeing it at its best and at its potential worst. After all, if you’re going to live there for years, you should make sure it’s a place you really want to be year-round.

You might be healthy as can be right now, but that could change. This is why it isn’t always the best idea to live somewhere you can’t easily access health care services. 

You’ll want to be sure your new home isn’t too far from a doctor’s office or emergency services, like a hospital or 24-hour clinic.

If you have existing health problems, make sure you’ll have access to the specialists you need close by. The last thing you’ll want to deal with when sick is driving four hours to see a doctor or having to make that drive regularly to get the care you need.

As you age, you might find long drives less feasible, and it may become preferable not to be too far from the basic things you’ll regularly need. Think the grocery store, bank, pharmacy, and even the post office.

Make a list of your weekly outings and appointments, and make sure the place you pick puts you within a reasonable driving distance of those services. 

Also, keep in mind that, eventually, someone else may be driving you to those destinations. You could be saving your future self money on taxis or simply doing that future friend a favor by living close to the things you need.

Maybe you’re OK right now with the idea of living far away from loved ones because you’d easily be able to make the distance work by driving or flying. But will that always be the case?

As you get older, your health and finances may not allow for the same pace of travel. This is why it’s important to consider the proximity of the people who matter most before making a move that might limit how much you’re able to see them.

On the flip side, you don’t necessarily want to become next-door neighbors with your family members. Although you might have a great relationship with your immediate family, there is definitely such a thing as spending too much time together.

If you like the place where your family lives and it checks many of your boxes, that might be enough to make it work. But picking your retirement destination exclusively based on proximity to family could backfire. 

Remember, choosing a place to retire should be a holistic decision, and making that decision based on one reason alone (even if that reason is family) may not be the best way to go about it.

Wherever you decide to move, do some tax planning first. 

Although moving to a state with no income tax might sound appealing, that’s only one piece of the puzzle when it comes to taxation laws and your potential tax burden. In fact, many states don’t tax retirement benefits, and others (income tax or not) have significantly higher property and sales taxes.

And it's not just your new state you’ll want to consider, but also the state you’re moving from. For example, you could pay capital gains tax when selling your current house. If you like where you are enough, a hefty tax bill could mean you should consider just staying put in retirement.

Before making any moves, be sure to familiarize yourself with all the tax implications, both in your current state and in the state in which you plan to move, and then make sure you can afford them.

Maybe you think you found the absolute perfect place for retirement, but it’s important to make sure you’re basing that off accurate information — and not just romanticizing the place. 

It’s easy enough to visit a place for a short time and then make it into an ideal destination in your mind. But picking a good retirement location is about balancing myriad needs that are both financial- and lifestyle-related.

There are a lot of great places to retire. Still, the one that will make you happiest will provide an affordable lifestyle and all the other elements you need for a happy retirement — and finding that should be your primary focus, no matter how pretty some other place appears to be.

At this stage in life, you know yourself and your needs well enough, and who you are likely isn’t going to magically change once you retire. That being said, be sure to pick a place that fits your social life and needs.

If you thrive in communities, don’t switch to living alone in the woods. Conversely, if you hate game night or having the neighbors drop by unannounced, maybe pick a place with more privacy. Or if you know your favorite way to socialize is to play pickleball, don’t move to a town without a club or public courts.

Before moving to a new spot, it’s important to consider the specific social life you’d like to have and pick a setting that helps you live it.

Choosing a place to retire is probably one of the biggest decisions you’ll ever make, and it’s important to take the time you need to pick wisely. Choosing in haste could turn into a costly mistake — and on a fixed income, you want to avoid wasting money. 

Start by making a prioritized list of everything you’d like to have in a retirement location, then visit a few top destinations (during different seasons) with that list in mind. Although you might not find the absolute perfect place, aim to pick something that meets most of your needs and will grow with you as you age.

Making a big move is never easy, but prioritizing your wish list makes you much more likely to end up in a place that keeps you happy in the long run.