If you have the liberty to relocate in retirement, does that mean you should? Maybe you’re a snowbird who wants to live down South full-time, or maybe you want to stick it out in the cold and spend your retirement years close to family in the Northeast.

As with every aspect of retirement planning, there are a lot of factors that can influence this decision, and getting it right is crucial. After all, you don’t want to uproot your life, only to end up moving back later.

This week, Joel Johnson, CFP® joins Better Money Boston with WCVB Channel 5 to share important lifestyle and financial considerations before finding a new place to call home.

Staying Close to Family

Where you live in relation to the people you love can have a significant impact on your overall well-being. Having served over 6,000 families in retirement planning, we’ve seen firsthand how moving away from family can lead to a decline in both physical and mental health. It’s easy to see why – we are naturally inclined to seek a sense of belonging from social relationships and interactions. That doesn’t mean you can’t rebuild connections elsewhere. Or if you’re moving to a familiar location, perhaps you’ve already cemented strong community bonds that you can continue to grow.

The Cost of Your Ideal Lifestyle

There’s also a financial component to this decision. Escaping a high cost of living, especially in the Northeast, is certainly worth considering. High costs can affect everything from housing and utilities to groceries and transportation. While there are benefits to living here that you can’t find in other states, you may find that affording the lifestyle you want means settling down somewhere else. Creating a solid income strategy can help to determine how much you’ll need each month to support your needs and desires in retirement.

Local Tax Laws and Regulations

Each state also has its own set of rules, regulations, and laws that you’ll want to consider. It may make financial sense to move to reduce your overall tax obligation. There can be a large discrepancy by state in terms of income tax, property tax, estate tax, and inheritance tax. For instance, Massachusetts has a punitive inheritance tax, so oftentimes wealthy individuals will choose to leave the state just to avoid it.

Weighing the Pros and Cons

As we’ve discussed, moving in retirement comes with both pros and cons. It’s important to look at the bigger picture before making any life-changing decisions. Relocating can make a comfortable retirement more affordable, but the non-financial costs are just as important to consider. By carefully evaluating all these factors, you can ensure that your permanent residence aligns with your unique vision of retirement.