Know Your Budget When Researching Retirement Cities

Evaluating retirement destinations can seem overwhelming at first, but the right approach should help you narrow your list. Start by assessing your finances; you’ll need to gather your records, estimate your annual retirement income (including Social Security and pensions), then divide that number by 12 to get your monthly budget.

When budgeting, consider all of the potential recurring costs you’ll face. These might include utility bills, rent/mortgage payments, taxes, grocery bills, and medical expenses. Be sure to budget for occasional unexpected expenses — auto repairs, home repairs, and emergencies, for instance.

Once you know what you can afford (and what you’re currently paying), you’ll be able to evaluate your options. Generally, this starts with housing; rent and mortgage payments are likely the largest single component of your budget, so if you’re hoping to retire in a reasonably priced city, the first step is to look at available properties.

Evaluating the Costs of Different Cities

Finding the best place to retire will take some work, but the internet lets you make comparisons easily with a few clicks. Use online resources to gather real estate or rental prices from several cities. Don’t immediately restrict your search to a certain part of the country — even if you’re fairly sure that Dallas isn’t for you, you might find a property at a rate that catches your eye.

Keep notes or a spreadsheet to track your research. Remember, while housing is a major expense, it’s not the only cost to consider — look for information about local taxes, state taxes, and cost of living. Be willing to look in the suburbs; suburban rentals can offer great bargains, so you might be able to save money while still enjoying the amenities of big-city life.

The tax environment is an especially important consideration for retirees. Seven states have no income taxes, and many have large cities that make great retirement destinations. Those states include:

• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington
• Wyoming

After building your notes, you’ll have enough information to narrow your search based on your budget. Once you’ve got a shortlist of options, you can consider whether or not a certain city is appropriate for your lifestyle.

Find the Factors That Matter to You

For many older adults, the first and most important consideration is weather. That’s why Florida’s such a popular retirement destination — the state’s favorable tax environment and year-round warm climate makes it an obvious choice.

Other factors to consider:

• Public Transportation- If you plan on spending a lot of time in the city, find out whether they have safe, reliable public transit or whether their streets are navigable for pedestrians. Be sure to factor the costs of transportation into your budget.
• Entertainment and Lifestyle- You’ll have years to explore your new city, so find out what’s available. Make sure the city’s entertainment options fit with your tastes.
• Access to Healthcare- Look for cities with high-quality healthcare systems. Research the cost and availability of healthcare in every destination, particularly if you have any health conditions that will require ongoing treatment.
• Community- Many retirees choose destinations near friends and family. You’ll also want a city that allows you to build new friendships after you’ve moved in, so look for local clubs and social groups that appeal to you.

You might consider other factors depending on what matters to you. If you love the outdoors, Wyoming can be a great choice; if you’d rather spend your nights exploring a bustling city, Miami has a certain appeal. If you already built your budget and researched expenses, finding the right city should be much easier.

Researching Carefully for Comfortable, Affordable Retirement

Once you’ve researched your options carefully, consider a trial run. Visit the city (or cities) you’re considering and spend a few days. If you’re bored by the end of your stay, that’s a good indication that you need to keep looking.

For most seniors, the best option is to cast a wide net. Start by using online resources to assess housing costs in at least 3-4 cities. Read carefully and try to consider every factor that will affect your quality of life. By using the internet, you can make a solid retirement plan — and enjoy your golden years without worrying about your bank account.