The traditional notion of where to move in retirement is getting a shake-up.
The New York Times recently highlighted Latitude Margaritaville, a retirement community in South Carolina’s low country, that has been attracting droves of new retirees.
And a new ranking of 250 metros that might be appealing to retire to as you look out over the next two decades puts major urban centers at the top and more slow-paced spots toward the bottom.
Goodbye, Villages. Hello, Manhattan.
Our recent story on the Geography of Prosperity Index drew thousands of comments from retirees and near retirees weighing what they’re looking for in a place to live out their retirement years.
Cost of living is primary — housing costs, plus utility bills, homeowners insurance, taxes, health care costs, gasoline, groceries, and more.
But there are other layers to ponder, like your social network, your hobbies, geographic beauty, and more.
Here’s my list of retirement relocation factors to evaluate:
This is a great place to start to narrow down your search.
”Do I want to live in an urban, suburban, rural area? What region of the country? What country? What’s the economic trajectory of the region, the city, even the neighborhood, because all of those things matter in your well-being,” said Ryan Frederick, CEO of Here, a platform dedicated to “place planning.”
These are key questions to ask yourself.
Another factor: weather. Can you face sweltering summers in Florida? Will you be up for shoveling snow in New England?
Read more: Retirement planning: A step-by-step guide
The cost of running air-conditioning in southern retirement meccas like Florida and Arizona may make these places less appealing. In coastal locations, the rising cost of homeowner’s insurance can pack a wallop year in and year out.
The Federal Emergency Management Agency’s National Risk Index for Natural Hazards assigns every county in the nation a vulnerability measure for 18 natural hazards, including wildfires, heat, hurricanes, flooding, landslides, and earthquakes. These calculations also factor in a community’s capacity to navigate those perils.
Daily living costs vary widely across the US. In theory, moving to a smaller residence should trim your utility and maintenance costs. Even in a larger home, energy bills may be reduced considerably if you move from a place with cold winters and hot summers to somewhere more moderate year-round. It all comes down to the area’s cost of living.
That information is available from the US Bureau of Labor Statistics and services such as Best Places.
One big payoff of relocating can be cashing in the equity you’ve built up in your home and moving to a more affordable area where you can buy a place for a fraction of what it costs where you live now.
Read more: How much do you really need to save for retirement?
Each year, the FBI releases detailed crime data from more than 16,000 state, county, city, university, and tribal law enforcement agencies, covering nearly every American community. This information can be found at the FBI’s Crime Data Explorer website. Additional crime stats are tracked by services like NeighborhoodScout.
How far away from your potential new home is a top-notch hospital? Do you want to be an hour’s drive away if there’s an emergency? You’ll also want to get an idea of how many primary care physicians and specialists are in the region. Primary care doctor ratios on a county-wide basis can be found at the County Health Rankings & Roadmaps website.
Medicare premiums vary considerably by market. For the prices and terms of carriers that serve your future community, check the federal website for Medicare and the website of the state’s department of insurance.
Moving from a high-tax state to a low-tax state is strategic. Many people choose a retirement locale with no income tax. While income tax considerations are imperative, you’ve also got to account for state and local taxes, which can reach 7% or more. Florida, for example, imposes no state income tax, no taxes on Social Security, no inheritance tax, no estate tax, and no taxes on retirement income like pensions, IRAs, or 401(k)s, but it has significant sales taxes and property taxes.
On the other hand, five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no state-level sales tax. Property taxes are typically the heftiest tax burden for homeowning retirees. According to the Tax Foundation, states with relatively low per capita real estate tax collections include Alabama, Arkansas, Louisiana, New Mexico, and Oklahoma, while those with high per capita real estate tax collections include Connecticut, New Hampshire, New Jersey, New York, and Wyoming.
Most states give breaks to residents over a certain age, and there may be property tax credits or homestead exemptions that limit the value of assessed property subject to tax.
Have a question about retirement? Personal finances? Anything career-related? Click here to drop Kerry Hannon a note.
Are there places to hike, bike, swim, ride horses — whatever moves you to, well, keep moving? Dig down to find out how walkable and bikeable a place is. Both activities are big factors when you’re seeking a healthy lifestyle.
In addition to access to a good airport for visiting family and friends, consider what your daily transportation needs will be in your 70s and 80s.
Is there reliable mass transit available to you? What does it cost? Are roadways crowded? Assessments of walkability (the ability to stroll easily to basic retail businesses and mass transit for everyday needs) and bikeability can be found at Walk Score and the League of American Bicyclists.
Being closer to family can be rewarding, but it might not meet all your expectations, as family members may have their own busy schedules. Talk to your family before you move about expectations of getting together and helping out with childcare.
There’s your checklist. Now your homework: Make a list of your top five retirement locations. After you do your research, go for a visit, and then, if you decide you like it, go back to rent for a few months, if it’s financially possible, to get a deeper sense of the place beyond a tourist drop-in. Talk to your financial planner and accountant to get an overall view of what’s possible for you.
Margarita, anyone?
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including “Retirement Bites: A Gen X Guide to Securing Your Financial Future,” “In Control at 50+: How to Succeed in the New World of Work,” and “Never Too Old to Get Rich.” Follow her on Bluesky and X.
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