Where to Retire

When it comes to deciding where to retire, the first step is reviewing your priorities. Once you know the kind of retirement lifestyle you really want, you can begin narrowing down your location options based on the things that are most important to you in your eventual retirement spot. In such an important decision-making process, a little research and a lot of planning can go a long way to getting you to the ideal spot for your golden years.

Getting Started

To help narrow your focus, try to answer the following questions:

How close to family should I/do I want to be?
Will I be caring for a spouse or another loved one, possibly in ill health?
What matters most: enjoying outdoor activities 10 months out of a year, or the change of seasons?
Am I ready to downsize or do I want to maintain the same style of living?
Do I want to tend to a house and/or garden?
Would I enjoy splitting my time between different locations?
Do I need to be close to a major airport for ease of travel?
In what cultural or civic events and organizations do I want to be involved?
Would I still like to work and thus, need to be close to such opportunities?
How will my financial situation change over the next 10-20 years?

This exercise will prompt your deepest desires to come forth, and probably a few more questions about the best place to retire. Don't hesitate to answer truthfully - it's okay to spend only three months in Florida or to have a little space between family members. Just because you're retiring doesn't mean that you have to give up choices in your life.

Next Steps

Now that you've identified your priorities, you need to put together an action plan. This general plan will then serve as a baseline for making decisions, but need not be followed religiously.

Talk to a financial planner. All you need is love, most of the time. The rest comes from your checkbook. You may already have a trusted financial advisor that you've used for years, but if not, ask your accountant to recommend an expert in retirement money matters.
Consult with your health care professional. How you manage your health after retirement is of paramount importance to your quality of life. Healthcare providers can partner with you on a number of important decisions, including finding suitable replacements in your new locale and directing you to resources of necessity or interest.
Take stock of your family and friends situation. The relationships we have in our later years and our day-to-day interactions with others can be of great benefit. If you're considering moving away from family, discuss how visits will be arranged and how frequently. Plan trips and extended visits with friends. Reinforcing your existing network will aid the transition process.
Start downsizing. For some, the task of getting rid of material things is very difficult, as if parts of their lives are being cast aside. In reality, many retirees delight in seeing family heirlooms put to use by the younger generations; clearing out closets of "stuff" hidden for years; and creating scrapbooks to preserve memories. Your stress will be greatly reduced if you start downsizing before the urgency of the actual move begins.

Before Making the Decision

Once you have a few possible locations in mind, you'll want to carefully consider each one before buying a house or making a move.

Review What the Experts Say

The magazine, Where to Retire, is considered one of the leading authorities on information regarding retirement relocation. The company will send one free issue to anyone who is interested in seeing what the magazine has to offer.
CNN Money provides Money magazine's top retirement location choices for the year and review a number of articles on retirement living. The site provides a top 25 list of the best places to retire, based on information such as median home price, average of clear skies reported annually, tax and crime rates, cultural and civic support, population, and so on.
Kiplinger’s provides a guide to taxes on retirees on a state-by-state basis. Included in the information provided on the website are the ten most and least tax-friendly states for retirees, the eighteen most pension-friendly states and the thirty-five states that do not tax Social Security benefits

Take a Trip

The world is your sample platter with an Elderhostel program. This active, learning-based vacation can be your scout trip to hundreds of different potential retirement destinations, without a full commitment. Plus you're traveling with your peers, and their views of their homebase may enlighten you.

Try Short-Term Stays

Depending on your priorities and resources, consider experimental living for a month or two in locations of interest to you. Many college communities, for example, have transitional housing available for rent for far less than the price of an extended hotel stay. Other homeowners have properties they rent out for just such a circumstance at certain times of the year. Many retirees benefit by living as a resident, rather than a tourist, in a community about which they are curious.

Deciding Where to Retire

It can be exciting to design a new phase of your life, merging dreams with practicality and then taking a chance. Most individuals planning to relocate for retirement invest one-to-two years researching the possibilities and putting affairs in order. So take your time, as the only right way to determine the best place to retire is to settle where it feels like home.