Have you thought about relocating when you retire? If so, you’re not alone.
Lockdown restrictions during the pandemic gave many people time to think about their priorities and to plan for the future. The dramatic change in circumstances caused more people than ever to consider relocating, leading millions of over-50s to relocate in retirement.
In fact, research from Legal & General suggests that more than 3 million over-50s in the UK considered relocating in retirement as a direct consequence of the Covid pandemic.
Many people are choosing to retire abroad
Meanwhile, the number of Americans choosing to live outside the US has also grown in recent years. Reports from Social Security Administration reveals that 760,000 American retirees are living outside the US.
The latest report from US News and World on the Annual Best Countries has revealed that Switzerland is the most popular country in the world. When it comes to a comfortable retirement, alongside Switzerland, Portugal, Spain, Canada, and Luxembourg all feature in the top 10.
There are a variety of reasons you might consider a move when you retire. According to Legal & General, the primary reason to relocate was for a better quality of life, closely followed by a desire to be nearer to family and friends or to live abroad.
Moving home can be an exciting time, but it’s also a huge decision
It’s important to take some time to think about all the implications before you commit to a move. This is especially true if you plan to move away from an area you've lived in for many years.
Here are three important things to consider when weighing up the decision to move.
1. Have you done your sums?
It’s crucial that you check the figures and ensure that your move is affordable. This is especially true if you’re moving to a new part of the country, or a different country altogether.
Check out property prices in the area before you commit, so you know how much your new dream home is likely to cost. And take time to understand what your budget will buy in your ideal location.
You should also consider how much relocating might affect your regular expenditure. It's not just the large cost of buying a house, but the everyday costs and smaller spending that may change with your move.
If you're planning to move abroad, think about whether relocating will affect your income.
For example, relocating outside the UK doesn’t prevent you from claiming your State Pension, but you may lose out on annual increases. There are some countries where you can still benefit from the annual increase to the State Pension. So, check the rules for the country you are planning to live in.
Read more: 7 useful facts about the UK State Pension for people living abroad
Losing increases to your State Pension may seem like a small matter now but, over the course of your retirement, these incremental increases can add up and provide protection from inflation.
2. How will your move affect your lifestyle?
Before you commit to relocating, take some time to consider your lifestyle goals and make sure the new location will provide what you need and want in your retirement years.
Whatever the reason for your move, it’s important to understand how you want to spend your time when you retire. Perhaps you want to spend more time with family, get involved in community projects, or simply enjoy your hobbies?
Wherever you’re looking to live, be sure to check you’ll have easy access to the amenities you’ll need and can pursue the hobbies you love so you can enjoy your retirement to the max.
It might be wise to spend some time in the area before you move. This will give you the opportunity to talk to residents and business owners and allow you to gain a better idea of what it will be like to actually live there.
3. Will you have people nearby to offer support if you need it?
If you’re moving away from family and friends, think about what support you’ll have in your new home.
If you plan to move away, you may intend to travel back to see your loved ones frequently, but what about when you get older? Travelling long distances may not be a problem now, but will it still be possible 10 or 20 years from now?
Thinking about the need for additional support can be challenging when you enjoy being independent, but it's sensible to consider how your plans will play out as you age.
If you need extra help in the future, would you have someone close by who will be happy to lend you the support you need?
Later life can change your outgoings drastically, especially if you need to pay for care or support.
Even if you're simply paying someone to do your grocery shopping or look after your garden, you should factor this into your retirement spending. It's always better to be prepared than face financial problems when you're older.
Read more: 3 practical steps when planning for later-life care costs
Whether you want to relocate or stay in the home you know and love, the key to making sure you get the most out of your retirement is to have a plan. And that’s something we’re here to help with.
Get in touch
We’re passionate about helping our clients have the best retirement they can. If you’d like to find out more about how we can help you prepare for retirement, please get in touch.
Email enquiries@alexanderpeter.com or give us a call on +44 1689 493455.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
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