You’ve spent a lot of time and money on your retirement savings. You want to spend that money on things that will last, not just give you some short-term boost but also leave you with something long-term. Choosing a location for your retirement can help make this a reality. Get the best retirement location possible to ensure you have the best chance at a happy, healthy future.
Luckily, we’ve put together this list of insider secrets that can help you plan for the future with confidence.
The Cost Of Living
One of the most important factors to consider when choosing a retirement location is the cost of living. While this may seem like a no-brainer, many retirees can forget about this vital factor and still end up in a favorable location because of other considerations. If you are using your savings for a comfortable retirement, you can rest a little easier knowing that the costs of living in your chosen location won’t be as much of an issue. Like many retirees, you don’t need to think twice about where your retirement will take place; you will be thrilled in the same general area where you live. However, if you are looking at a new location, make sure you know the cost of living in your new place. This will help you determine if it is worth the extra money you will need to move to a new location. You will also want to keep in mind that there may be additional taxes and fees associated with retiring to a new location.
Tax Rules For Retirees
While this is not an essential consideration when choosing where to retire, it can make a big difference in your decision if you are considering moving to a new location. In many cases, retirees are subject to some pretty stipend tax rules that make it difficult or even impossible to take advantage of some of the tax benefits that exist for others. If you are a person who wants to contribute to a qualified retirement plan like Medicare or a traditional 401(k) or other retirement plans, you may have a little bit of a leg up because you have the opportunity to choose from a wider variety of plans under the new tax rules. However, if you are just starting out in your retirement planning, you may not have as many options as you’d like. In these cases, you will want to take a hard look at the tax rules for the new location and see if there are any ways you could potentially save money there.
Access To Health Care Services
This can be anything from doctor visits to hospital stays to long-term care (i.e., nursing homes) and everything in between. You don’t want to be left with no options if something unexpected happens and you need to be hospitalized. If you have to choose between being able to go to the doctor or having to deal with the sores and scabs that are long-term care costs, the doctor’s visit will almost always take priority over any other medical issue you may have.
Long-Term Care Costs In The State
Even if you aren’t able to reduce the long-term care costs in your new location by as much as you would like, knowing where they are lower than your current location can still help you save a few hundred dollars over the course of your retirement. When doing so, be sure to take into account the cost of everything that goes into long-term care, including eating healthy food, bills, medications, and even the extra things you will need because you are in long-term care. If you are on a fixed income, you might have to decide whether reducing your long-term care costs is worth the additional financial stress that comes with it.
Estate Tax Rules
Estate tax rules can make or break a retirement location. While you don’t have to take a hit under the estate tax rules, you will want to make sure that you are aware of any exceptions or modifications that affect your situation. If you are able to reduce the estate tax rates in your new location by inheritance or through a gift, make sure that you know how you can do that and make sure there are no additional taxes or fees associated with the reduction.