People often buy houses so they can have a place to stay once they retire. It’s a typical concept for most retirees. But there are times when life happens, and some people might get forced to move or had a change of plan.
Experts at the Bank of America, together with Age Wave, says that 36% of retirees don’t anticipate moving once they reach their golden years. But more than 37% of them have moved while 27% anticipate that they’ll mote at some point.
Why seniors are relocating
Half of those who have relocated downsized their home. Meanwhile, 37% of the seniors who moved went up to a larger home. They wanted a home that that enough space for an office or a room where their grandchildren could stay.
Other respondents wanted to move closer to their family. These contradict the reasons that people had a couple of years ago. Back then, most people thought of relocating to areas where they can feel relaxed so they can enjoy their retirement. Now, they’re looking for a place where they’ll feel welcomed. They’re also looking for areas with excellent health care and a community of people that they can create an interaction.
How to know if relocating is the right move for you
If you’re one of those people who are nearing retirement, it’s best to carefully plan your life so you can leave a comfortable life.
Before you start looking at Kansas City for homes for sale, you and your spouse should first agree on the destination. It’s only reasonable to have personal preferences, especially when it’s about choosing the place to spend your retirement. So, Nasdaq suggests asking yourselves if you’d be happy with the destination that each of you has in mind. It’s best to do your homework and learn as much as you can about the area. Doing so will give you a better idea about the estimates regarding the transaction and moving costs.
Next, you need to know how much you can withdraw from both your savings each year. It can be challenging to rely on Social Security benefits alone, especially once you’re retired. Soon, you’ll start from your retirement savings to cover your expenses. But most experts suggest not to take money out all in one go. Taking out your savings too quickly will leave you with barely anything left to last the rest of your retirement years.
One rule of thumb is to only withdraw 4% of your retirement savings on the first year your retirement. Then, you can gradually increase it based on the year’s inflation. But to get even more accurate results, you can use the tables made by the Internal Revenue Service to get the required minimum distributions based on tax-advantaged savings accounts.
Relocating during your retirement years is always a possibility. That’s why you need to be ready for it as soon as possible. Doing so would help you plan better so that you won’t get caught off-guard. It’s always best to stay ready no matter what life brings you.