Your children have grown up, married, and moved away. As they start to have families of their own, the desire to be closer to them creeps in. You ask yourself, should we move closer to our children? What should you consider when you pose the question of moving. Beyond the emotional changes––such as the loss of your current community––there are a few financial considerations to keep in mind.
Consideration #1: Cost of Living
Before diving headfirst into the idea of a new city, begin with a cost-comparison between your current location and the area in which you’re considering. What are real estate prices like? Will the sale of your current home afford you a comfortable residence in your new city? Consider expenses such as health care and insurance as these are likely to vary as well.
Don't forget to look at the livability of your new location. Visit or research what local restaurants are available, the types of grocery stores, shops and other amenities. While you want new and familiar options, these options can also have a higher cost depending on the city you are considering. Make sure you factor those changes into your finances as well.
Consideration #2: Housing
One of the biggest considerations you’ll need to make is what your living situation will look like. Will your child move you into an in-law suite? Or do you need to weigh the pros and cons of renting versus buying a home? When you’re looking for housing, you’ll also want to consider functionality. Will you be hosting celebrations and holiday dinners in your home, or do you primarily plan on spending time over at your child’s place? If so, then you may find it best to downsize to a condo or apartment.
If you want to be able to have grandchildren sleepover, host Thanksgiving dinner and entertain friends and family, then you’ll want to look for a piece of property that can accommodate your needs.
Consideration #3: Resources & Discounts for Retirees
If you are currently active in your community through venues such as community centers, non-profits, churches, schools, etc., don't forget to research similar opportunities in your new city. While you are moving closer to your family so that you have more quality time with them, don't forget that you will still want to spend time alone or as a couple.
Additionally, you may find that the area you’re moving to offers added perks for seniors, such as discounts on public transportation.
Consideration #4: State and Local Taxes
If you’re considering staying in-state, checking into what your state and local taxes will look like may not be a top priority. But wherever you’re considering heading to, check into what you can expect your taxes to look like. Also, you’ll want to look into other tax obligations including sales, property and estate taxes. Depending on where you move to, taxes can vary greatly across the board.
If you’re struggling to determine whether or not you should move closer to a child, or if your budget will allow for it, speak with your financial advisor. Together, you can determine the best decisions for living comfortably in retirement. And if living near your children is a big priority in retirement, weigh the pros and cons and talk to your loved ones to see what the best next step should be.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.