Whether you’re thinking about moving across town, across the country, or across the pond when you retire, relocating in retirement is a big life decision.
1. Don’t Rush Into Selling Your Home
Take your time to consider all the pros and cons before you stick a “For Sale” sign in your front lawn. Depending on the real estate market, it may be worth staying in your home until you can get a better price. If your mortgage is paid off by the time you retire, aging in place may be a better decision because you’ve already eliminated one of the biggest retirement expenses: the cost of housing.
2. Test Drive A New Location Before You Retire
If you’re thinking about relocating to another state, use your vacation time to test drive other locations while you’re still working. Some 55+ communities offer vacation packages for pre-retirees. Or, you can rent an AirBnB to see if the lifestyle works for you. If your retirement dream includes selling everything to travel the country in an RV, rent one instead to see if you’re cut out for life on the road.
“If you can’t bring yourself to part with an item, don’t. You can always change your mind later.”
3. Start Purging The “Stuff” You Don’t Need Before You Retire
You need time to sort through all the “stuff” you’ve accumulated over the years and decide what to keep and what to purge. Start with a family meeting to find if your kids want any of your “stuff” then think about organizing a yard sale to sell the rest. Things that you don’t sell can be donated to Goodwill. If you can’t bring yourself to part with a item, don’t. You can always change your mind later.
4. Do Your Research Before Moving Overseas
The majority of US expats say the lower cost of living is the top reason they retired abroad. But you need to do extensive research before you make the move. Living overseas can impact your FEHB HMO or traditional Medicare coverage. And you may owe income taxes in your adopted country in addition what you owe Uncle Sam on your retirement income.
5. Make Sure Your Federal Benefits Move With You
Contact the Office of Personnel Management (OPM.gov) to report changes to your address and direct deposit banking. For the Thrift Savings Plan (TSP), you can go to your online “My Account” to make any changes yourself. Also contact your FEHB carrier to make sure relocating to another state doesn’t impact your coverage.
Before you make a big move that you may later regret, weigh the pros and cons with the help of an FRC® trained advisor.
