You’ve worked long and hard during your federal career and you’re looking forward to enjoying the fruits of your labor. Should you move to one of the Sun Belt’s 55+ communities with endless days of good weather? Then again, living the ex-pat life overseas may be a great adventure. Or, you may prefer downsizing to a smaller home where the cost of living is lower. Relocating in retirement is a huge decision that requires a lot of thought and research before you make the move.
Retiring In A 55+ Community
If you’re self-sufficient and enjoy an active lifestyle, these communities offer a range of on-site amenities like golf, restaurants and more. Since most are run by a Homeowners Associations (HOAs), it’s important to read the fine print before you sign a contract. Make sure you understand the rules and the consequences of breaking the rules. The rising cost of HOA fees are another consideration because you may not be using all the amenities as you grow older.
(Block quote): Is the cost of living considerably lower in the new location or are expenses like property taxes and homeowners insurance on the rise?
Moving Overseas In Retirement
Countries like Spain and Portugal offer highly affordable housing but, if you’re enrolled in a FEHB HMO plan, you won’t be covered. Some Blue Cross FEHB plans and Medicare Advantage plans offer options for ex-pats but traditional Medicare will not cover you overseas. Keep in mind you’ll still owe federal income taxes no matter where you live and you could end up paying income taxes in both countries.
Downsizing To A Smaller Home
If your current home has a good amount of equity, selling it can provide a number of advantages. Depending on the real estate market, a portion of the proceeds from selling your home can be used to purchase a smaller home or condo while the rest can help fund your retirement. However, it’s important to look at all of the financial factors especially if the mortgage on your current home is paid off.
Do Your Research Before You Relocate
How far is it to travel to visit family and will you be able to make the trip 10-plus years from now? Will you have convenient access to quality healthcare providers and hospitals that accept your FEHB coverage? Is the cost of living considerably lower in the new location or are expenses like property taxes and homeowners insurance on the rise?
These are the questions to ask yourself as you conduct your research. You can also touch base with an FRC® trained advisor who can help you crunch the numbers and compare your options.
