Regardless of Income, Retirees Seek Greener Pastures

While a strong financial foundation enables our users to relocate, the reason why relocation usually occurs is that individuals want to explore and take advantage of all the benefits that their new home brings

According to a recent poll by eRetirements.com, many pre-retirees are looking for a change of scenery when they eventually retire. Even more interestingly, annual income seemed to have little to no effect on those relocation goals. For households with annual incomes of less than $250k/yr, 41.7% of poll respondents said that they would certainly relocate during retirement, and only 0.4% said they were not likely to relocate. For higher income households in the $750k-1mm annual income bracket, a similar 40.8% of respondents said they would certainly relocate for retirement, and 0.5% said they were not likely to relocate.

Although these pre-retirees want to find themselves in some of the top places to retire, it appears that many could be lacking the financial preparation that is important for a life changing move. According to the same poll, 52% of pre-retirees under 50 years old said they have not met with a financial planner, with that percentage dropping to 38.7% for pre-retirees 65 years and older. While self financial management doesn’t necessarily hinder relocation to the best retirement cities, using the services of a professional financial planner can be helpful to calculate retirement income, tax implications, and cost of living changes upon moving to a new area. According to Aquiles Larrea, CEO of Larrea Wealth Management, “Someone this close to retirement needs to start thinking of the Where, What, How, and Why.” “Where will they retire, and is it more affordable? What is important for them to prioritize? How will they fund this new lifestyle? Why are these prioritized items truly important?” Answering these questions with a professional can help to ensure that retirement is well planned, and in turn well funded.

This desire to relocate across a diverse income range affects not only soon-to-be retirees, but should also be very telling for homebuilders, local governments, and city planners. If these baby boomers do in fact settle down in new areas upon retirement, there will be a greater need for housing,…

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