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Are You Thinking About Retiring Abroad?

man an woman walking - moving abroad in retirement

Most Americans prefer to retire in the US, but some adventurous baby boomers are looking for ways to retire abroad. According to a study by International Living magazine in 2023, Americans are moving abroad to spend less money and live healthier and happier lives.

If this sounds like you, you probably have many questions about retiring to another country. What are the best countries to retire in? How can I find good quality healthcare? How will I learn the language? Do I have to pay taxes?

The good news is that there are thousands of retirees who have already moved to a new country. So, there is tons of information available on where and how to retire abroad.

Why retire abroad?

There are a few big motivators for retiring abroad. First is the sense of adventure. Living in a new country can be an exciting experience, giving you an opportunity to broaden your horizon, learn about new cultures, try new food, or simply have a fresh start in life.

Another big reason to retire outside of the US is that many baby boomers didn’t save enough for retirement or their retirement nest egg lost value and never recovered.

These are financial realities for a growing number of baby boomers who are hitting 65 without enough money stashed away to maintain their standard of living. The number of retirees who draw Social Security outside of the US is growing every year.

How to choose where to go?

Typically, when people start their research on where they would like to live, they often consider places where they had an amazing vacation. But vacations and reality often clash.

A beach town might seem like a perfect location for a holiday. However, once you decide to relocate issues like climate change, frequent flooding, and hurricane season become much more of a consideration.

The best advice is to make a list of priorities and what is most important for you to have in a new place.

One helpful tool is an International Living magazine thorough survey of ‘where to retire’. Annual Global Retirement Index is a study that incorporates several different factors including affordable housing, quality healthcare, safety, political stability, weather, and more.

The World’s Best Places to Retire in 2023

Once you decide where you would like to retire you will need to start looking at residency requirements, visas, healthcare, and how taxes work.

Establish residency.

Every country has its own residency requirements, such as providing a certain amount of annual or monthly income, showing substantial savings, or even purchasing real estate.

There is a difference between temporary residency, long-term residency, and permanent residency.

Keep in mind that establishing permanent residency in a foreign country does not necessarily means citizenship. In some countries, permanent residency leads to access to public healthcare and permits to work. But you cannot vote in an election or get a passport.

Several countries offer ancestry citizenship to those who can prove that they have ancestors who were citizens of that country. Ancestry law varies from country to country, but do not underestimate the value of the second passport. If you get one in a European country, you will have access to free healthcare and even send your kids to college for free.

EU Citizenship Through Ancestry

Learn about visa requirements.

Visa requirements vary from country to country. But if you are retired and do not need to work, those kinds of visas associated with retirement (non-working visas) are relatively easy to obtain.

For example, if you want to move to Portugal, you will need to apply for the country’s popular D7 visa. It’s also known as Retirement Visa or Passive Income Visa. This type of visa means you have to prove that you can support yourself without working. First, you will obtain a temporary resident visa. Then after a few years, you can apply for a permanent residency visa, which allows you to travel through the EU like a citizen.

Keep in mind that qualifications for each type of visa typically include a background check, proof of income, and proof of international health insurance (you can switch over to a country’s health insurance after you obtain residency). Additionally, in some cases, you need to open a local bank account and have proof of local accommodation.

Here is a helpful guide to a List of Countries with Retirement Visa

Pay your taxes.

Many people do not realize that there are requirements for reporting your income even though you live in another country. This is much easier to plan upfront than to deal with after the fact.

As a US citizen, you are always required to pay taxes even if you have retired in another country. You will still have to file an income tax return with the IRS and will have to declare any money withdrawn from your retirement accounts.

Keep in mind that pre-tax retirement plans such as 401(k) and IRA, retirement pensions and often Social Security benefits are incomes that remain taxable.

Organize your assets.

If you are planning to retire abroad, you have to think about how to organize your assets. You don’t need to move your assets with you. Your stocks and bonds portfolio, your annuity, and retirement accounts such as 401(k), IRA, and Roth IRA, can remain in the US.

To cover your day-to-day expenses, you can open a local bank account to accept regular transfers from your US account and pay bills.

Also, you can open an online banking account which makes it easier to manage your money while living abroad. It makes more sense to apply for a direct deposit from Social Security than wait for a check mailed abroad. Online banking may prevent currency change or check-cashing fees.

Major credit cards such as Visa, Master Card, and American Express are accepted in many locations around the world. In many cases, it will be easier to use credit cards to cover your daily expenses and purchases.

But if you decide to move your assets abroad, you need to work with your account or tax attorney to find out how your assets will be taxed.

If you choose to move to a high-tax country like France or Switzerland, your expat life can cost you more than expected due to high taxes. On top of local taxes, you may be taxed in your home country as well. Thus, before making the move, it is a good idea to investigate the tax laws of your new country to get an idea of what you will be paying for.

Think about healthcare.

When you reach your retirement age, healthcare is one of the first things you think about. The fact is the US has one of the most expensive healthcare in the world. By retiring abroad, you can save thousands of dollars and still receive the greatest healthcare service possible.

As of 2023, South Korea, Taiwan, Denmark, Austria, Japan, Australia, France, Spain, Belgium, and the United Kingdom made the list of the 10 best healthcare countries in the world.

Keep in mind that if Social Security will follow you as you travel, Medicare coverage will not because it is extremely limited outside of the US.

Depending on where you plan to live, you may find international or American insurance companies that sell health insurance to foreign visitors. Similarly, depending on your new country, you may find that healthcare is affordable, and you do not need to buy additional insurance. If not, find out what coverage you will have as a visitor and plan accordingly.

6 Best Countries for Expats Healthcare in 2023

Connect with others.

When you have decided which country you want to move to, consider the expat community that you will likely be part of. Many cities have large established expat communities with regular expat meeting groups. On another hand, some cities have small tight-knit expat communities made up of just a handful of people.

Chances are, you will want to be a part of the expat community. This can be a good thing and a bad thing. Some of these communities are better than others. But it can be easier to make friends if you join an expat community.

Just do Google search for “expats+ your new city name” and you will find one. Also, it is not a bad thing to check out various websites where the global community of expats has answers to your questions and is willing and able to assist.

My favorite website is Expat.com where you can learn more about housing, health insurance, places to eat and visit, and more. There are also private Facebook groups that cater to retirees abroad including Retired or Thinking Retirement?

At the same time, you will get more from your time abroad if you take the time to learn the local language and then make friends with locals. There are tons of free tools out there to help you learn your chosen language.

For example, I am a huge fan of the Duolingo.com website which offers free language lessons in French, Spanish, Italian, German, Portuguese, and more. In addition, you will probably be surprised by how many local people speak English.

Final Thoughts

Retiring abroad has become very popular in recent years. If you are a retiree, it will offer you a unique opportunity to explore the world, expand your horizon and experience a new way of life. Whether you are looking for a warm climate and beautiful scenery or want to explore a new culture and learn a new language, retiring abroad has its own benefits.

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25 Practical Tips for Retirement Travel on a Budget

by Maggie Leave a Comment

travel in retirement on a budget-boats on a river in a canyon

Traveling in retirement is the most common dream. Ask anyone about their retirement plans, and you will find something in common – a desire to see the world.

According to the Transamerica Retirement Survey, almost 70 percent of American workers want to travel the world in retirement.

Why? Because retirement is the ideal time of life to travel, enjoy and get a taste of places you could not afford to experience when you were younger. But travel as a dream often gets left unfulfilled because many people worry about the high costs of travel.

These 25 practical tips with help you get the most out of your money and still have an amazing travel experience in retirement.

1. Book in Advance.

Booking in advance is definitely worth it. Specifically, plane tickets do not get cheaper closer to the departure date.

The best time to book a flight is between 4 months and 3 weeks before the departure date when the tickets are most inexpensive. Similarly, you get extra time to compare hotel rates. Even planning as little as a month in advance is beneficial for your money because it gives you time to create a vacation budget.

2. Look for Last Minute Deals.

There are so many websites offering last-minute deals. In retirement, you can stay flexible so you can save a ton of money on travel expenses.

Here are a few sites to look at:

3. Be flexible with your travel dates.

When you are retired, you do not need to travel on a specific date and be home by a certain time. This flexibility can save you significant money.

In general, to get cheaper domestic flights fly on Tuesday or Wednesday or in the afternoon on Saturday.

Another tip is to avoid buying tickets on Friday, Saturday, or Sunday – these days are the most expensive to book airline tickets. Wait until Monday, Tuesday, or Wednesday when there not so many people browsing the internet to book the flights.

4. Fly when no one else wants to.

Another way to save money is to fly an early-morning or late-night flight.

You can significantly cut the costs of your airline tickets if you choose to fly between 5 and 7 a.m. or after 8 p.m. Prices are also cheaper if you fly after the major holiday or on the day of a holiday.

Thanksgiving and the eves and days of Christmas and New Year are the most affordable days to fly.

5. Be flexible with the dates for your stay.

Having a flexible schedule can help you save money not only on airfare but also on lodging.

Traveling over the weekends will usually be more expensive. Choosing a destination’s high season will most likely cost you more money as well.

While doing your research, see what the accommodation rate is when just changing the date by a day, by a week, or more. I recently looked at a hotel that charged over $900 a night for a room. Then a few weeks later, they had the same room for $200 a night. That is a huge difference for the same room.

6. Sign Up for Email Alerts.

You should sign up for free email alerts from your favorite airlines or other travel sites to get an early access to coupon codes and flash sales.

7. Buy your plane tickets at the right time.

According to a CheapAir.com survey, for a domestic trip, you should buy your tickets 21 to 115 days before your trip.

Ticket prices within this window will be within 5% of their lowest price. For an international flight, you should book your plane tickets at least 6 months in advance.

8. Find more affordable travel destinations.

When you are on the road, it can be hard to stick with your budget.

Luckily, there are plenty of affordable destinations out there. Some travel destinations will always be cheaper than others, so you can travel on a dime and still enjoy yourself.

You may want to do a Google search for the cheapest places to travel to learn what your options are. You can find ideas for places to stay in the US or abroad. Research your destinations in advance to calculate potential costs.

10 Best Places to Travel on a Budget.

9. Get creative with transportation.

Transportation is often a deal breaker while traveling on a budget.

The hardest part is finding the right plane ticket. But there are a few strategies you can use to make your destination affordable.

Airplane tickets become very expensive with the additional cost of reserving a seat, extra fares for check-in luggage, carry-on bags, food, in-flight entertainment, and more.

The best way to find a cheap flight is to compare prices. We use Skyscanner, Kayak, and Expedia to compare ticket prices and make sure we get the best deal.

There are a few other ways to cut costs on airline tickets:

Let the airline choose your seat.
Bring your own food.
Do not purchase in-flight movies and TV shows.

Once you get overseas, you can save money on popular budget airlines like Ryan Air, Easy Jet, or Wizz Air. You can fly between European cities for as low as 50 dollars.

10. Find cheaper ways to get around your destination.

Depending on where you travel in retirement, there may be many ways to get around.

If you are traveling on a budget in Europe, use their affordable public transportation. Nearly every European city has a fine network of subways, buses, trains, and trams. If renting a car is your favorite option go for it, just remember that in many cases it won’t be cheap.

Traveling by train is a great way to get around different areas, even to different countries. Reclining seats, Wi-Fi, and clean toilets allow you to travel in related comfort.

You might fly to Paris, Madrid or Rome and then travel by train to nearby countries or regions.

Keep in mind that traveling by train can cost more than by bus unless you have a rail pass or book your tickets a few weeks in advance.

The best way to buy European train tickets is through websites like Trainline, Omio, or RailEurope.

For example, if you travel around Italy, the high-speed train tickets will be more expensive (around 50-70 euros per ticket) than Italy’s regional trains.

Rick Steves gives a great overview of Italy’s rail passes and train tips.

11. Travel Overnight.

You can save money on a train or bus ticket by choosing an overnight route since they are less popular than day trips or flights.

Generally, bus and train tickets are often cheaper than plane tickets, especially if you are traveling long distances. In fact, sometimes it is cheaper to take a bus than to drive. Also, traveling by bus and train is often cheaper than flying because you can take more with you before paying extra baggage fees.

Additionally, if you travel overnight, you will save some money on accommodation as well since you will be spending the night traveling. However, it can be well worth the money, but it won’t be the most comfortable sleep ever.

12. Bring your own snacks.

If you are traveling on a budget in retirement, keep in mind that food makes up 16% of your travel budget.

Plan ahead and pack snacks to avoid making a hole in your budget fast. Granola bars, mixed nuts, fruit snacks, or cookies are never a bad idea to have in your bag rather than buy them at the airport.

travel in retirement on a budget - snack in a lunch box

Even when you go out on a tour or excursion, carry something to nibble, like fruit, nuts, or a baguette, so you won’t be starving every time you sit down to eat and order more food than you need.

13. Save on baggage fees.

Nobody likes paying for their bags when traveling by air, especially on a budget.

Check your airline policies and fees for both checked and carry-on bags. If you always fly with a certain airline, you may want to open one of its credit cards to avoid a checked bag fee. Plus, as a bonus, one of your travel companions on the reservation can enjoy a free bag as well.

Also, you can save money on baggage fees if you are packed light, and you won’t have to pay for checking in bags. Checking a bag may cost $30 or more for the first bag, and it’s even more if you have to check a second bag.

Packing light can also reduce your travel stress. Apart from avoiding additional fees, traveling only with carry-on means you don’t have to wait in line at the baggage claim, there is no lost baggage, and there is less to carry around. Real winner!

14. Find inexpensive housing.

Next to finding a cheap flight, finding inexpensive accommodation will have the biggest impact on your budget.

Everyone likes to splurge on fancy hotels but staying at the hotel while traveling on a budget is not the best option. Staying at someone’s house or condo can be more comfortable and affordable.

Consider staying at a pension (local boarding house) or B&B (bed and breakfast) so you can live like a local.

Depending on the type of accommodation you choose and the city (or a country) you are visiting, you could be spending from $50 to $300 or $400 per night.

15. Rent an Airbnb.

Renting an Airbnb is much cheaper. It is an ideal option for staying in one place for several weeks or even months.

This will allow you to save money on lodging and food because you will have access to a kitchen to cook your own meals. You can buy food at local stores and prepare it at home or ask your host for budget-friendly local places to eat.

Additionally, you can ask your host for some advice on places to see, shop and eat as a local.

Airbnb, VRBO, and Home Exchange are the websites that can help you save money on accommodation.

16. Cut travel costs on food.

Food is another big travel expense. Eating out three meals a day can take a big bite out of your travel budget.

According to Business Insider reports, you can expect to spend an average of $71 per person at fine-dining restaurants and that does not include tax and tip.

Many restaurants have the same menu for lunch and dinner, but they mark up the prices for dinner.

One of my favorite ways to save money on food while traveling is to eat a big lunch. Eating a bigger lunch will fill you up, so you can still have a small dinner at the end of the day.

17. Eat like a local.

Another way to cut travel costs on food is to go and shop at the local markets.

You can make your own breakfast or cook dinner with fresh ingredients instead of spending money at an expensive restaurant.

The best way to get a more authentic experience is to eat at local cafes and bakeries or find mom-and-pop diners.

18. Cut travel costs on activities and entertainment.

No matter where you travel, there are so many things to do that will cost you little or no money at all.

If you are first time in the city, check out the popular tourist attractions. Many historical buildings, churches, and sites do not cost money to view.

Hiking the trails, spending time on the beach, or checking out nature usually does not cost you money. If you bring your own lunch and water, you can have an amazing day outdoors without paying a fortune.

Many cities offer free local walking tours. But you need to do research and plan ahead of time to reserve your spot.

9 Best Websites to Book Free Walking Tours

19. Travel in the mid or off-season.

There is peak season and there is off-season for traveling. Traveling during the peak season is always going to cost you more than traveling during the mid or off-peak season.

You can cut the costs on plane tickets, hotels, food, museums, and tours. When places on your bucket list are less crowded, they are also less expensive.

Being retired means you can be flexible and avoid the touristy season with inflated prices so your trip will become more affordable. For example, summer (and winter in some places) is the busiest travel season for tourists in Europe.

Therefore, spring and fall are good for traveling on a budget. You can enjoy mild weather, smaller crowds, natural beauty, and low prices. However, the Caribbean islands are a good place to travel during the summer. It is cheaper because of the hot weather and hurricane season.

20. Go for longer trips and keep expenses low.

I would recommend traveling slowly if you want to cut the cost of your travel expenses in retirement. Staying put in one place longer will allow you to reduce the costs of tickets and accommodation.

For example, going on a trip to Paris would cost about $1,350 from Boston airport (round trip ticket), and a mid-range hotel about $250 per night. Overall, you can spend around $2,850 for transportation and accommodations on a one-week trip.

You can stretch that trip to two weeks and the price will only go up to $1500 for the hotel since you do not have to pay for the plane ticket for your second week.

The trick is to spend more time in one place so you can reduce your per-day travel expenses by spreading the cost of an airplane ticket over a long trip.

21. Sign up for a hotel loyalty card.

No matter where you travel, sign up for a hotel’s loyalty card so you can earn a free hotel stay in the future.

The loyalty programs are typically 100 % free. You can accrue points with your membership card and possibly your travel credit card too.

There are also other benefits to signing up for these cards. Sometimes you can get free hotel room upgrades, early check-ins, late check-outs, and additional discounts.

Best Hotel Loyalty Programs and How to Maximize Their Benefits.

22. Get a Travel Insurance.

The one thing that you cannot afford to do when traveling on a budget in retirement is to get sick. That is why you should seriously consider buying travel insurance.

This is an extra expense that can save you a lot of money if you were to get hurt or sick in a foreign country. Keep in mind that Medicare wouldn’t cover any medical/ emergency expenses when you are out of the country.

Make sure that your trip doesn’t turn up as a disaster and protect yourself from flight cancellations, delays, and lost luggage, especially when you consider flying with several stopovers.

The 4 Best Travel Insurance Companies.

Best Senior Travel Insurance by Forbes Advisor

23. Get a Local Sim Card.

Using roaming on your iPhone can increase your travel expenses fast.

Try to get a local Sim Card and use that phone plan for internet access while traveling. This way you can stay connected with family and friends back home without worrying about extra international charges.

When you arrive in a new country, just go to a local telecom store (the equivalent of Verizon or AT&T) and buy a temporary Sim Card.

24. Get a travel reward card.

If you do not have a credit card with travel benefits, then get one.

Travel credit cards are very popular because they give you cash back or points and travel rewards. You can collect airline miles and hotel points, or pay no foreign transaction fees while shopping.

A Chase Sapphire Preferred card is the most recommended by many travel blogs.

16 Best Travel Credit Cards.

25. Rent out your home.

If you do not plan on selling your home, you can put it to work when you are away traveling.

The typical house exchange is an arrangement where you swap houses with somebody else in another country or city. It is a great way to vacation if you want to stay in one place for several weeks or a month.

For example, I live in Boston and am planning to spend three weeks in Madrid. If there is someone from Madrid who wants to visit Boston at the same time, we can do a house swap. That way, I will save money on lodging and get to experience a new city in Spain.

The 11 Best Home Exchange Sites to Save Money.

Practical Tips to Make a Smooth Transition to Retirement

by Maggie Leave a Comment

a couple walking with travel bags to the boat - transition to retirement

Like many other life transitions, retirement comes with emotional and mental adjustments. Your transition to retirement will not happen overnight.

Most retirees will go through stages of emotions when adjusting to a new life. Give yourself some time to understand that this will be a process. Learn how to slow down. Pause and relax. The process of transitioning should be a gradual learning curve.

Here are a few practical tips to help you make a smooth transition to retirement.

Prepare for ups and downs.

The first year of retirement will be filled with bumps and adjustments no matter how well you are prepared.

Do not expect the transition from your 30+ years of work to retirement to happen without stress and anxiety. There are going to be surprises and disappointments down the road before you settle into something more comfortable.

There will be times when you feel lonely, isolated, or a bit lost, which is normal. But do not spend your time dwelling on thoughts about the end of your career, loss of identity, and loss of social connections.

Accept that you have done all you can working for many years and focus on your next phase of life. Make peace with it and move on to your next challenge.

Retirement Finances

1. Know your retirement expenses.

A good life costs money. You do not need to be rich to have a happy life, but you still need enough money to finance your retirement lifestyle.

As I have already explained in many of my articles, you need to figure out how much you actually need to retire and live a comfortable life. Obviously, that is a different amount of funds for everyone!

If you are close to retirement, have a clear snapshot of your retirement funds and where your money is going today. It can help you take control of your spending and saving habits.

If your numbers show that you will be able to cover living expenses and have enough left over to live a comfortable life, then you are on the right path. But if you have a significant shortage of funds you will need to cut your spending, save more, or even work for a few extra years.

2. Simplify your finances.

Many people use retirement as a time to make their life simpler. Smaller homes, fewer cars, and less stuff.

How to simplify your finances?

Consolidate bank accounts. Close multiple savings and checking accounts and consolidate them in one bank account. With fewer accounts to track, you will have less hassle remembering logins, websites, and spreadsheets.
Consolidate retirement accounts. Roll over multiple 401(k) accounts to a single IRA.
Get rid of paperwork and pay your bills automatically. Easy to track your payments. And you will reduce the stress of money management and make it less complicated.
Reduce the number of credit cards. Cut back to just one credit card.

3. New life on a fixed income.

In retirement, you will transition to living on a fixed income. Your salary will stop coming and your income stream will change.

But you have saved and invested your money preparing yourself for a new life on a fixed income. Your new income will come from the combination of Social Security, a pension, retirement accounts – 401(k), IRA, Roth IRAs, and investment accounts. This is what you have worked so hard for all these years.

Retirement Lifestyle

1. Develop a routine.

We all need structure in life and our job helped create that structure for many years. When we stop working the structure is gone.

What happens when you retire? It is Monday morning, but you do not need to go anywhere. There is nothing planned. There is no alarm clock and no morning rush.

The first few days or weeks will be exciting. You can sleep late, read in bed, or catch up on your favorite Netflix shows. But I am sure that by the end of the week or month, you will start feeling bored, isolated, and maybe a bit depressed. The fun is gone, and you will be glad to go back to something more meaningful in your life.

That is why you need to develop a routine and create a “new normal”. Some people love to have a daily routine, while others cannot bear to have everything predictable. But without proper planning and developing daily activities to get you up every morning, your retirement life will be dull.

2. Find hobbies and interests to fill your days.

I believe that everyone had some interests in life before they were forced to put it on the shelf during their working years.

older man run marathon - transition to retirement

All those things we regret not having time to do during our working years can act as an inspiration when we transition to retirement. It can be sports and travel. It can be learning something new – a new language or instrument. Also, it can be starting an art project or home remodeling.

Many pre-retirees are afraid to be bored in retirement, and I can relate to that feeling. Most of us spend our lives dedicated to responsibilities. We often forget how to live outside of our comfort zone.

If you are getting ready to retire, think about how to structure your days. Plan to allow yourself to try something new and even uncomfortable like going back to school or learning how to paint.

Here is a list of ideas:

Learn how to sail.
Start (or join) a book club.
Learn how to paint.
Take a pottery class (a photography class).
Take a cooking or baking class.
Write a poem.
Write an e-book and publish it.
Learn new digital skills – open an Instagram or Twitter account.

3. Keep in touch with your friends from work.

Losing your network of co-workers and office friends can be hard. Eventually, life in the office will go on without you.

Even though you are retired, it does not mean you have to lose contact with the group of your office friends completely. A simple email, text message, or phone call can lead to regular catch-up meetings with your friends from work.

Also, you can make arrangements for lunch or dinner dates once a month to stay in touch with your ex-colleagues. Most workplace friends will be happy to catch up with an old friend they have not seen for a while.

Once you retire, it is easy to become involved in other activities outside of the workplace. But keeping workplace friendships alive during retirement can help you mentally adjust to life without work.

4. Expand your horizons.

Travel is often high on the bucket list for retirees.

Many people (including myself) look at retirement as the best time of their lives, a time for adventure and travel. I believe that one of the biggest benefits of retirement is the freedom to explore the world and expand your horizons.

Do you have a retirement bucket list?

I have found it useful to create my retirement bucket list. That is a list of things I want to do and see in our local area and other countries.

I like to keep my bucket list updated with the name of new places I learned and the dates we want to travel there. Most of the time, Roman and I feel excited when discussing our travel plans and the places we want to visit.

A few ideas from my retirement bucket list:

Live in France for a year and learn French language
Go on a road trip through Sicily
Take cooking classes in Spain and learn how to cook paella.
Write an e-book.
Visit Brazil during the carnival and learn how to dance salsa.
Take a European river cruise
Grow a vegetable garden.
Design and build a lake house.
Go on a Safari in Africa
Visit Tahiti

5. Spend time with people you love.

Retirement can be a challenging time for relationships. When you stop working you will leave most of your friends at work behind.

Unfortunately, many will disappear from your everyday life the day you leave. It will take a lot of effort from both sides to keep friendship, once the common purpose of work is gone.

Growing older could be lonely unless you have support, love, and even friendship from your family. Do you have a good relationship with your spouse? Are you close to your children and their families? Do you spend enough time with your grandchildren?

Offer to go to the game or concert with your kids and grandkids. Consider a family vacation together. Spend all the holidays and other celebration times together.

Do you stay connected with other parts of your family like your brothers or sisters? Do you keep in touch with them regularly if they live far away? What effort do you make to stay in touch with them?

Unfortunately, many of us spend more time on Facebook, Instagram and Twitter to stay informed and connected with former classmates or colleagues because they post often rather than spend time with people who are important to us.

I read that one of the greatest regrets of people who are getting closer to the end of their lives is that they didn’t spend enough time with their loved ones.

Life is short! Make sure that you spend enough time with the most important people in your life.

Final Thoughts

Most of us look forward to retirement as a time to relax and enjoy our golden years. Finally, we can do whatever we want and when we want.

But the transition from work to retirement comes with its own challenges. Many people will learn how to adjust to retirement life in different ways. Everyone’s path will be unique. But you will know how to deal with challenges if you are prepared.

Following the practical tips above will help you transition to retirement better so you can feel happy during your new phase of life.

Helpful articles you might want to read:

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Is Relocating in Retirement a Good Idea?

by Maggie Leave a Comment

houses next to mountains-relocating in retirement

According to studies, 36 % of those 50 and older want to stay in their current home when they retire. Yet almost 37% of retirees have moved since retiring. And 27% expect to move at some point.

What is right for you depends on your lifestyle, financial resources, and personal preferences on climate, activities, and proximity to friends and family.

If you have just retired or are a few years from retirement, you may be thinking ‘Where should I live in retirement?”

Sometimes there are good reasons to relocate in retirement.

You want to be closer to your family.

For many people, there is a good reason to move in retirement because they want to be closer to family or friends.

Right now you may have no real plans to go anywhere. But if your adult children are planning to move away, you do not have to feel stuck when your family no longer lives near you.

Some retirees prefer to move to another state or area to be closer to their children and grandchildren. As we age, having family members nearby can be crucial as we must rely on their help more than ever before.

Also, if you suddenly lose a spouse after moving across the country, you will find support by being closer to your family. On the other hand, if you move you will be leaving your friends behind.

You want to move where the cost of living is cheaper.

This may not matter to you if you have saved a good nest egg for retirement. But most people have a limited amount of retirement savings. Moving to a more affordable place to live could make all the difference in allowing your savings to last longer.

If you currently live in an expensive area, you should consider moving to a place with a lower cost of living. The sooner you relocate the easier it will be to make sure you do not spend your savings fast.

Keep in mind that housing is your biggest budget item. Even in retirement housing costs as a percentage of spending will remain around 35% on average.

Reducing your housing costs now will give you more cash to put toward your other retirement goals. Once you are retired, the fact that you have lower housing costs means you will need less income in retirement for this essential expense. Plus, you will have freed up more income for other retirement expenses. That could mean more travel or spoiling your grandkids.

You want to move where taxes are lower.

Even in retirement, you must pay taxes. The cost of living is important. But how much you pay in state income tax also plays an important role when you live on a fixed income.

Some states are tax-friendlier than others. The following states do not have a state income tax:

Florida
Nevada
New Hampshire
Tennessee
Texas
Washington

Moving to a state with low taxes and estate taxes may be worth considering if you have built a sizable amount of retirement assets that will be taxed as you withdraw them.

For example, if you move from Massachusetts to Florida, you rid yourself of state income tax. But if you move from New Hampshire to South Carolina, you have to start paying state taxes.

You want to downsize to a smaller home.

If your current home is too large for you, you should consider downsizing.

Find a house that is easier to maintain. Downsizing is not just a physical change. Sometimes it is a way to create a new life in a new space.

Moving also allows you to choose a home better suited to your needs during your retirement years.

By moving from a single-family home to a condominium you are trading stairs and mowing the lawn for less space and more amenities, including indoor and outdoor swimming pools, a gym, a club room, etc.

Also, it might be a good time to sell your home if you know that it will sell for a great amount of money in the current housing market. You may get a high bid for your home and then be able to move anywhere you want to.

If you have always wanted to travel in retirement, then selling your house may be a great decision. You can rent a condo or apartment so you will feel free to travel often and not worry about maintenance, repairs, and yard work. Even if you just downsize to a smaller home, you will have more money available for your travels, and hobbies.

A move can also reduce your costs if you are looking at relocating to a senior living community.

Some of these communities are all-inclusive with dining, shopping, and fitness/spa located in one spot. In exchange for an HOA fee, things like maintenance and lawn care may be covered for you which means less stress on your wallet and time.

You prefer to move to a place with a better climate.

If you want to avoid the Northern winters, you might want to relocate to a different geographical area with a better climate.

After living in a cold climate for years, many retirees prefer to move to a warmer climate so they can stay active and enjoy spending more time outdoors. I hear all the time people saying they want to retire at the beach. But have they ever spent time in a beach community in the off-season? It can be a very different place.

However, if you have never lived in a warmer climate before, you will need to get yourself time to adjust. Do not expect to get used to the new temperatures immediately. Be patient with yourself and learn how to adapt to the new climate.

Additionally, if you have health problems, talk to your doctor about planning to move to a different climate. Your doctor should help you make the transition easier. Some medications may even interfere with your body’s ability to tolerate temperature changes.

There are plenty of advantages to living in a warmer climate but there are also damaging weather conditions such as hurricanes, tornadoes, etc. Be sure to ask your real estate agent questions about special insurance policies you need to cover any weather-related damage if you own a home in that area.

Why to stay put and retire in place?

Ideally, retirement is supposed to be a time when people move to a warmer climate to sip drinks on the beach or to play endless rounds of golf. But in reality, a huge percentage of Americans are happy to stay put and retire in place.

There are many good reasons to retire in your hometown.

It is cheaper to retire in place if your mortgage is paid off.

Moving is an expensive task both in time and money.

You will spend a large amount of money and time looking for a new home, preparing your existing home to list, paying realtor fees and real estate taxes. Then hiring movers, moving, paying closing costs, and renovating your new home to fit your style and taste. If you stay put these expenses can be avoided.

Remaining in your community.

You are lucky if you can afford to stay where you are in your retirement years. You get to keep what is familiar and comfortable in a home filled with memories.

Additionally, staying closer to your friends and neighbors will help you fight the loneliness and isolation that often comes with retirement.

As we age, our ability to socialize and meet new people shrinks. Perhaps, that is because we are no longer working, or maybe we do not have enough energy to make a bunch of new friends. That is why remaining in your community gives you access to people who have known you for years, maybe even a lifetime.

Additionally, if you stay close to home, it might be easier to find work if you start depleting your nest egg fast. Perhaps you can reach out to the old group of friends or colleagues to find opportunities for a part-time or freelance job.

Great healthcare system

If you live in an area that has a great healthcare system, that is something to consider before moving somewhere else. Moreover, you will be seeing the same doctors that know you well.

In retirement, the typical household spends around 12 percent of its household income on medical expenses annually. That amount increases to nearly 16 percent by age 75.

If you are trying to keep your out-of-pocket costs as low as possible, do not rush to leave affordable health care behind.

Update your home for aging in place.

If you decide to stay put, make sure it works for you.

Take a critical look at your current home and decide what changes you have to make to your home that will pay off in the future.

Here are some items that might be on your future project plan:

Add, expand, or renovate a bathroom.
Extend your bedroom and add an ensuite.
Redesign your kitchen to fit your new lifestyle.
Create an office space. It will help if you plan to do any side work or freelance.
Create a guest room. If your children and grandchildren come often for a visit, having a separate room will help them feel more comfortable.
Create an outdoor space to be your sanctuary.

As we age, so will our homes. Today we move effortlessly around our homes. But as we grow older our mobility will decline.

house with a wheelchair person - retire in place

As a result, those stairs might not be so easy to fly up and down to get to the second-floor bedroom. Or how about the bathroom? Climbing in and out of your tub could become a slippery risk.

Even the simple task of climbing the entrance stairs to get into your home might be an issue at some point. If you plan to stay put and “age in place”, start figuring out how much it would cost to make your home senior-friendly.

You need to find ways to make your home easy to access no matter what your age, size, or abilities.

Options might include:

First-floor master bedroom
First-floor bathroom
Bathroom grab bars and railings
Curb-less showers
Shower seat
Non-slip safety flooring
Task lighting in the kitchen and other work areas
Wide doorways to fit walkers and wheelchairs
Entryway ramp
Well-lit hallways

Home Renovations for Aging-in Place

Deciding where and how to live always involves some research and detailed planning. So, put your planning skills to work and think about where you will be comfortable living in retirement.

Here are a few related posts you might want to read:

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Is 55+ Active Adult Community Right for You?

by Maggie Leave a Comment

boardwalk on the water-active adult communities

There are 76 million baby boomers born between 1946 and 1964 and many of us looking forward to our next phase of life – retirement.

Millions of baby boomers are very well off. On the other hand, many baby boomers will be facing a tough financial future. Because our savings are low, our 401(k) portfolios have been reduced, some of us took forced retirement early and almost no one is getting paid pensions.

But the main question is where you are going to live in retirement still valid never matter your financial situation.

Everyone has their own take on retirement lifestyle and retirement living preferences. But today many boomers are interested in moving to an active adult or 55+ community rather than retiring in a traditional neighborhood.

When you reach the age of 55, you have a new choice of lifestyle. It is a neighborhood where people live with neighbors who are at the same stage of their lives. Many have raised their children and are ready to focus on their new phase of life without the responsibilities of parenthood and careers.

As you start exploring your retirement living options you may find that active adult communities are not different than any other residential community, besides their age restriction. Most of them are designed for a retirement-friendly and low-maintenance lifestyle.

These 55 and over “age-restricted” communities typically mean that someone in the residence must be at least 55 years old. But moving to this type of retirement community can offer you plenty of benefits when it comes to amenities, services, and social life.

If you are planning to move to a 55+ community, you can choose from different types of these organizations.

Types of 55+ active adult communities:

There are several different types of 55+ communities to choose from.

Active senior communities. These 55+ communities are designed for those who live a more active lifestyle. They offer plenty of various activities such as swimming, biking, hiking, etc.

Golf and resort communities. These communities offer a resort-like environment with high-quality amenities. Your lifestyle will be like a year-round vacation living on a beautiful gold course.

Luxury communities. In this type of 55+ communities, you will find larger homes with more refined amenities, impressive landscapes, and luxury features available to their residents.

Gated communities. This type of community offers all the bonuses of a 55+ community with added security and enhanced privacy.

These types of communities for active adults make life easy and enjoyable each day. However, is a 55+ active adult community the right choice for you?

The Positives

Convenient Amenities

Perhaps the best benefit of living in 55+ communities is that they provide plenty of amenities. The community will give you many opportunities to socialize, exercise and stay active in your retirement years.

Amenities that may be provided include:

Golf courses
Fitness centers
Swimming pools
Tennis courts
Dining areas
Social events
Arts and crafts classes

In addition to the amenities, the community residents often organize social events, affinity clubs, volunteer groups, and other ways to stay active and involved.

Social life

When you move away from a neighborhood where you have lived a long time, you would appreciate the opportunity to make new friends.

In active adult communities, residents are likely to be in the same place in life. Everyone worked hard for many years, raised a family, and now is looking to enjoy a relaxed and comfortable retirement.

It will be easy to find people with whom you have so much in common and who want to develop a great friendship.

Active lifestyle

When you retire and have plenty of time on your hands you would like to have neighbors who share your interests and activities.

When you have the more available time, it is easy to make your schedules more in sync with others. Each community has different activities and amenities, you just need to pick and choose what you want to do.

Your community may often present many opportunities for activities like potluck dinners, parties at the clubhouse, regular board and card games, book clubs, and organized outings for residents.

man and woman doing yoga - 55+ active adult communities

The best part is that you do not need to wait for weekends or take time off from work to go on a trip or schedule some activities. You can explore new hobbies, meet like-minded people, and have a varied and interesting life. People you meet will like to stay busy, social, active, and have fun.

Low Maintenance

This might be the best-selling point for people who choose to move to an adult active community.

If you are tired of lawn care, yard work, exterior upkeep, and everything else in between, you might find that low maintenance and hassle-free living is appealing.

There is no more yard work, snow-blowing, raking leaves, or painting the exterior. Many residents choose to downsize from the big homes where they raised their families and move to smaller homes with less maintenance.

The interior maintenance and daily upkeep are still the responsibilities of the homeowner. However, as a resident, you will enjoy your life without the burden and hassle of dealing with your home exterior repairs and maintaining the yard. Your homeowner’s association (HOA) fees will cover the costs of community maintenance and your home exterior.

Typically, the homeowner’s association provides all services to keep the community beautiful and pristine.

Quiet and peaceful environment

Adult active communities often offer a more peaceful and quieter environment than residential neighborhoods with families that have young children.

Adult children and grandchildren are of course welcome to visit. But overall, the requirement for residents of 55+ communities is to have a less noisy and more quiet place to live.

Even though you like a kids-free environment, occasionally you might want to host your family including grandchildren. When looking at an active adult community, make sure to learn their policy about having visitors and overnight guests who are younger than 55.

Some communities have restrictions on how many family members can visit and for how long.

Affordable cost of living

Today these types of communities are located in many regions and became very popular.

Also, it triggered more interest from the residential developers and builders. Perhaps, you have an option to move into one of these new construction homes which are built to be more modern and energy efficient.

With the new construction, you can personalize your home by selecting the details, materials, features, and the latest eco-smart technology. This means you can avoid complicated renovations to make your old home more age friendly.

However, if you are planning to move to a retirement community at age 55, you have to consider how the monthly HOA fee fits into your budget. You can only start taking Social Security benefits as early as you turn 62. But that would still leave you with a 7-year gap to fill.

Also, taking money out of a 401(k) plan and IRA before age 59 ½, can trigger tax penalties. Hence, if you are not working full-time or part-time you may have to pull money from your savings accounts, CDs, or even an investment account to cover the cost of living.

Keep in mind, that taking money from your taxable investment account can affect your tax liability. You have to make sure that you have enough money to pay your taxes.

But as you compare the cost of aging in place and moving to a retirement community, you might find out that buying a retirement home in a 55+ community may be a cheaper option.

According to statistics, the average annual spending for people aged 55 to 64 adds up to $57,180 per year ($4,765 per month). It includes the costs of housing, utilities, transportation, food, healthcare, and entertainment.

But if you still want to live independently but with the benefit of added amenities, the average cost of a 55+ community will be between $1,500 – $4,000 per month.

Again, you have to look closely at what you are getting in exchange for what you will be paying. Then compare all this to your current budget and see what you might spend in the future.

The negatives

Homeowners Association (HOA) fees

Most of the adult retirement communities have some form of the homeowner association, and they collect HOA fees from the community members. These dues and fees are used to pay for the community repairs and renovations, and upkeep of the grounds.

Rules and regulations

While the homeowner association (HOA) collects fees from the community members, it also carries out community laws, rules, and regulations. These regulations and rules can be quite broad. If a resident violet a rule, the HOA may impose a fine.

Thus, before moving into the community, consider reading through the rules thoroughly so you will not be surprised by how you may customize your home or can and cannot use the amenities.

No medical care on-site

Most of the active adult communities do not provide any kind of healthcare services as part of your HOA monthly fee. Also, there are no on-site medical facilities.

These communities are mainly created with a focus on independent living rather than healthcare services. If you expect additional services, you can arrange for home care assistance through a third party. But if you need extensive medical care, you may want to look into another community with assisted living medical care.

Lack of age diversity

There is also a lack of age diversity in these types of communities since they are an age-restricted, and at least one member of the household should be 55 or older.

Not everyone finds it appealing to live with mostly old people. If you want to live amongst diverse age groups, you should reconsider moving into this type of environment.

The final words of advice – it is never too late to start finalizing your retirement lifestyle and retirement living options. The earlier you start, the better prepared you will be.

Here are a few related posts you might want to read:

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