It’s never a bad idea to start planning for retirement as early as now. If you’re considering it, then you must know when to retire.
There are many beautiful places you may want to be your final home. But before you find the perfect home for you, there are a few things you have to keep in mind. Here are some questions you must first ask yourself.
Can I Afford It?
When it comes to finding a place to retire, you have to assess the cost of living within an area. On average, you can expect that a majority of your current income will go to your retirement. Thus, it’s important to find a place with a low cost of living and affordable housing costs.
Depending on the state you plan to stay in, the cost of living may vary. For instance, in the United States, the lowest cost of living is in Mississippi, Oklahoma, Arkansas, Missouri, and Tennessee. While the highest cost of living is in states like Hawaii, California, New York, and more.
Is There Fair Taxation?
Aside from the cost of living, you also need to research state taxes. Typically, there are three different key aspects of taxation. These are state taxes, taxes on retirement income, and taxes on dividend income. Most places typically have taxes on retirement and pension.
It is important to note, however, that you shouldn’t entirely base your ideal state on its taxation laws. Lower taxes don’t mean that it’s easier to live in. Find the perfect balance between a place you love and reasonable taxation laws.
Do They Have the Best Accommodations?
When choosing a place for you to retire, consider whether it has enough accommodations for retirees to live. Is it near quality hospitals, assisted living facilities, and a vibrant community? Somewhere you have access to important facilities and cultural and educational resources.
Living within capitals or college towns should give you access to enough resources to stay entertained and safe. Before moving into a college town, you may consider acquiring housing and renting it out to local students before the move, just as an added source of profit.
Should I Retire Locally?
Another thing to consider before retiring would be whether to retire locally or not. It may be more convenient for you if your place of retirement is somewhere you are nearer to family or friends. If you are financially secure enough, then maybe you should consider simply retiring where you already live.
Especially if you’re already mortgage-free and living in a town where you know everyone, it might be best to just stay where you are. For cost-cutting, you can always sell your house or downsize.
If you are interested in moving locations, then you can also rent a unit somewhere and live there as a trial period before you officially retire.
There are many factors to consider when it comes to picking your retirement home. You want to live somewhere affordable, accessible, and convenient. However, making an investment in your home after retirement is worthwhile.
Looking for real estate agents in Vaughan to help you pick out your home after retirement? Partner up with Sold With Presta! We specialize in residential and commercial real estate in the Greater Toronto Area. Contact us today.