Retirees Might Experience Mass Exodus from These Regions Over the Next Few Decades
Retiring where you live is one of life's significant decisions. It's not solely a financial choice, but finances undeniably play a role. Your chosen residence impacts your living expenses, taxes, and more.
Looking at it numerically, some parts of the country make more economic sense for retirement than others. A recent Nationwide survey revealed that two regions, in particular, have residents expressing concern about their retirement location's financial feasibility.
Cost of Living Pivotal to Financial Sense
Nationwide situated the country into four regions: the Northeast, Midwest, South, and West. A staggering 74% of Midwestern and Southern respondents believed that retiring in their locations made financial sense. In contrast, the Northeastern and Western residents were skeptical, with 63% and 59% expressing confidence, respectively.
The survey also pointed out that 20% of Northeastern residents and 21% of Western residents anticipated being compelled to move to a more affordable location in retirement.
These findings align with the cost of living in these regions. Many cities in the Midwest and South often see lower costs compared to the national average, as reported by the Missouri Economic Research and Information Center (MERIC). On the other hand, the most expensive states lie in the West and Northeast.
However, despite the financial challenges, people residing in these regions tend to be prepared and acknowledge the costs. Interestingly, residents in the Northeast and West revealed a higher desire to retire in their current cities or states compared to those in the Midwest and South.
Ultimately, retirement decision-making hinges on various factors, including finances. You may already have a retirement destination in mind, or you might be undecided. Regardless, conducting a retirement budget review is advisable once you've made your choice.
Streamlining Retirement Savings
Estimating retirement savings begins by visualizing your future retirement lifestyle. Every retiree's lifestyle is distinct, encompassing varying travel plans and daily activities.
Use your present expenses as a foundation for estimating future costs. However, considering a possible relocation, inflate or decrease your budget based on the difference between your current and potential retirement city's cost of living. Other tools, such as UMass Boston's Elder Index, can help estimate how much money you'll require to live comfortably in retirement.
As you approach retirement, consistently reassess your plans and make necessary modifications. You may decide to relocate or realize that your hometown budget won't suffice. Earlier adjustments improve your shot at retiring comfortably.
- The Midwestern and Southern respondents in the Nationwide survey showed a higher confidence in retiring financially in their locations, with 74% and 63% respectively, compared to the Northeastern and Western residents.
- Despite the financial challenges, residents in the Northeast and West tend to have a higher desire to retire in their current cities or states compared to those in the Midwest and South.
- Interestingly, despite their reservations about financial feasibility, a significant number of Northeastern and Western residents, 20% and 21% respectively, anticipate moving to a more affordable location in retirement.
- Conducting a retirement budget review is advisable once you've made your choice, as it helps in estimating your retirement savings, considering factors like potential relocation and the cost of living in your chosen location.
