Where do you think you will live after you retire?

I find it interesting that many who are thinking of retiring believe that once they retire they will have the freedom to live anywhere, and they will pack up and go. That is not what happens when we retire, most of us reconnect with our own community. We don’t downsize, because we have children and grandchildren who visit and we need a large home to allow that to happen. Our home, if we own a home, becomes important not just as a financial windfall, but because of the emotional connection to our home.

I have a few friends who decided to move when they retired, and for a long time, they regretted their decision to move. Most of my friends have stayed where they are in retirement. When deciding where to live in retirement, whether you decide to move or stay in your current home, carefully consider a range of priorities that will be important to you in future. You should consider affordability, climate, proximity to family and friends, recreational or cultural activities, opportunities for continued work, access to good healthcare, etc.  My brother-in-law talked continually about moving upcountry when he and his wife retired, but once they looked at the items I listed they decided to stay where they are, however, if you are thinking of moving to another area consider trying out a potential area to live in retirement with extended visits or short-term rentals.

Consider all expenses when forecasting potential home-related costs during retirement, including mortgage or rent payments; income, estate, and property taxes; and insurance, relocation, utilities, repairs and maintenance, and other expenses. It is also important to consider whether you might want to renovate or remodel your home in retirement and plan and budget for those expenses as well. My wife and I did this and decided to renovate our home, which included redoing all of the plumbing as we knew it would be a major problem later on.

Assess whether you should pay off your mortgage before retirement. Paying off your mortgage before you retire can create greater financial security and peace of mind. But there are many factors – such as your risk tolerance, interest rates, taxes, estate planning, and other investment opportunities – that you should factor into this decision. Only about 68% of those retired have paid off their mortgage.

Don’t assume you will downsize your home in retirement. Moving to a smaller home can provide cash and reduce expenses, but you may find your current or even a larger home better fits your lifestyle and family needs in retirement.

Prepare for long-term care, in case it is needed, by researching options that would enable you to receive care where you most prefer, whether you choose to move to supportive communities and housing or to stay in your own home.

Consider home modifications and services that can empower you to remain in your own home if you face health challenges. Modifications, like installing lower counters and tables, replacing lever handles, enhancing bathroom safety features, and changing your living situation to avoid the use of stairs, can make it easier to get around your home. Home care services and health monitoring and alert technologies can enable you to continue living independently as long as possible

Though you will enjoy new freedoms during much of retirement, as you age, health challenges and care needs can become a larger factor in where you choose to live. There are two distinct phases when it comes to choosing where to live during retirement.

The first phase in retirement living, which can often span now 15 to 20 years or more, is a time of more freedom and new choices for how and where people live. This first phase has emerged as people live longer and are often healthier and more active than prior generations of retirees.

During the second phase, which often begins when people are in their 80s, health becomes an increasingly important factor impacting where people live. Among people age 85+, three-quarters have difficulties with at least some daily activities, such as housework, getting around the home, or other everyday tasks. As a result, many over the age of 80 consider a  move into an assisted living facility. The average age of people entering assisted living is 85.