Retirement Planning and Relocation 

When most people think about retirement, they think about kicking back, relaxing, and settling down into a calmer lifestyle. However, this isn’t the case for everyone. Some people expect to move frequently in retirement. 

This might be for financial reasons (such as downsizing or moving to a less expensive area), it could be for family reasons (helping with childcare or living closer to family as you age), or due to a variety of other reasons (wanting to live near health facilities, for instance). You may even want to move frequently for lifestyle purposes, such as living closer to the beach.

Whatever the reason for your moves, it’s important to know that retirement planning is different when you plan to relocate multiple times.

What to Be Aware of When Retirement Planning

If you expect to live in multiple locations when you retire, you need to approach retirement planning with that in mind. The first reason why is because a lot of retirees count on their home to help them with retirement costs. This can happen in several ways. One way is that many retirees sell their home, downsize or move to a less expensive area, and use the money to pay for some of their retirement costs. You can do this if you’re relocating multiple times, but know that it may not work out every time.

Whenever you sell a home, there are certain expenses associated with the process. You may have to pay realtor fees, taxes, and other costs that eat into your profits. If you do this once or twice, it’s not usually a big deal, but it can hurt you financially if you do it frequently. There’s also the fact that timing the real estate market is tough. If you buy a home, hold onto it for 30 years, then sell it, there’s a good chance you’ll make a significant profit. However, if you’re moving every five years, it becomes less predictable.

Another benefit to owning your home in retirement is that, as long as your mortgage is paid off, your monthly costs are quite low. You’ll need to handle property taxes and maintenance, but that’s often it. If you’re moving frequently, you’ll have to pay rent or mortgage wherever you go. That eats into your retirement income. 

Emotional Aspects of Moving Frequently

There is also an emotional side to retirement planning. It isn’t just about money. You’re naturally attached to your home, your neighborhood, and even your possessions. Moving frequently can be emotionally difficult for this reason. However, it can also be freeing. If you’ve lived in one place for a very long time, you’ve probably built routines that are hard to break. You likely also have a lot of “stuff” in your home that you’ve accumulated over the years. 

When you move frequently, you’ll have to give up these routines, emotional attachments, and a lot of the items you’ve carried with you for years. Not only that, but you’ll need to do it more than once. This can be a difficult, even potentially traumatic experience. It’s hard to leave important parts of your life behind. However, it can also be freeing and liberating. Letting go and moving on can make you feel good. It all depends on how you approach it.

Your location also affects your relationships. It’s much easier to be close to your friends and family when it comes to holidays, social connections, and even assistance with daily tasks. That said, there’s also a potential downside, as you may be expected to help with childcare or other activities if you’re close by. Taking all these factors into account is important when you’re thinking about relocation. 

How to Handle it All

Retirement planning involves considering what life may be like in the future, then creating a structure that supports it for many years. Every retirement is unique. Just because you anticipate moving frequently, it doesn’t mean you can’t create a plan that works.

First, look at the financials. What do you expect to spend in an average year? Calculating this can be a bit tougher if your situation changes every few years, but it’s not impossible. Doing it effectively just requires some foresight. 

Once you have an idea what you’ll spend on average each year, multiply this by the length of your retirement. Don’t forget to estimate for healthcare costs, which can go up as you age. If you plan to live somewhere new every few years, estimate your costs based on where you think you’ll be living. Having a plan can help with the emotional aspects of relocation as well. When you’ve prepared for a situation and looked at it practically, it makes it easier to deal with emotionally as well. You’ll likely look at your circumstances in a more positive light, so you’ll look forward to the moves instead of focusing on the possible downsides.