Newsbreak: The Pros and Cons of Relocating in Retirement – Experts Reveal How to Decide If the Financial Benefits Are Worth It

Relocating to a new state during retirement could be a wise financial move, but it’s important to consider all factors before making a decision. Many retirees move to warmer states, but other factors should also be taken into account. In a recent published survey by Nationwide on January 25, 2023, 40% of workers plan to move to a different city or region after they retire, with the most common reasons being to lower expenses and pay less taxes.

Social Security taxation varies by state, with 12 states currently imposing taxes on Social Security benefits, as reported by The Motley Fool on February 23, 2023. However, some states offer exemptions, and a low cost of living may offset taxes on benefits. Access to healthcare is also important in retirement, so researching local healthcare networks and Medicare Advantage plans is recommended.

Moving away from a support system can lead to feelings of isolation, which can be compounded by retirement. Therefore, it’s important to consider the mental and social implications of relocation. Before committing to a decision, retirees should ask themselves key questions to determine if relocating is the right choice. While relocation can benefit retirees financially, it’s important to weigh the benefits and drawbacks and do thorough research before making a decision.