Where Will You Retire
Make the right decision with these tips.
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How do 78 million baby boomers make informed decisions about where they should live in retirement? We asked John Brady from Topretirements.com - a website where real people share honest opinions about the best places to retire.
What makes a place a popular retirement locale?
People looking for a retirement location share many attributes, but they also have unique preferences. Some of the hot buttons for retirees are obviously low cost of living and low taxes, which they can usually find in the south and midwest. But having something to do everyday is key for many people. That is why college towns are so popular - there is almost always continuing education available, cultural events and a vibrant restaurant and entertainment scene. Some folks seek out active adult communities where they can live with their peers (and it's very easy to meet new people), and where there is often an enormous array of recreational, social, and entertainment options. Livability is increasingly important - finding a place that is charming, walkable, has ample parks and recreation, and has rich resources. Medical care, transportation, crime, and weather are also important considerations. But everybody is different - for every person who wants a small town there is another retiree who wants to retire in a big city. Some folks want to live in the mountains, many express a preference to be near a lake or a beach. Many people won't move anywhere - it's too hard pulling up stakes for the unknown and being near friends and family is very important (which is why some people move - they want to be near their children and grandchildren). Ultimately it's all about individual preference - whatever location has the right combination for that person.
Does weather play a factor?
Sure does. Some people can't wait to get out of the cold northeast or midwest. Some fortunate ones become snow birds, by living in the north in the summer and south in the winter; they get the best of both worlds. Increasingly a lot of folks are looking for a goldilocks climate - not too hot and not too cold. That is why the Carolinas and Tennessee are so popular. I hear a lot of people who are very concerned with humidity and bugs!
Does cost of living play a factor?
Cost of living is crucial for baby boomers in retirement. Boomers assumed that they would have a pension and social security to rely on, but pensions are now becoming a thing of the past. Blindsided or just poorly disciplined, most boomers have pitiful savings (about $50,000 in 2005, according to the Bureau of Labor Statistics); they are going to have to depend on social security for most of their retirement income, which won't be enough to sustain their current lifestyles. Many are angry about that. But the smart ones are going to get creative and live with the problem. Sell their suburban homes and downsize to a more efficient home. Move to a lower cost area. Maybe get a part-time job. Obviously, location is important here: lower cost areas and places where part-time jobs exist (tourist areas) will be more attractive. A lot of people are obsessed with taxes, incorrectly in our opinion. If you don't have much money, the only tax you have to worry about is property tax (and unless you live in a big house, that's not usually an issue). Not to say that there aren't millions of very well-off baby boomers.
Do retirees tend to purchase homes or rent homes?
I haven't seen any good data on this. But the indications we get from our members is that they intend to buy. Renting can be a very good option though, particularly if you are not sure about where to retire or if money is short. Most nursing homes and assisted living facilities, which cater to older retirees, are rented.
How do retirees seek out communities and retirement facilities?
I think you have to distinguish retirees by age and to a certain extent by health. Younger retirees(baby boomers, the oldest of whom became 64 in 2010), tend to be looking for the best towns or active communities. They come to places like Topretirements.com to look over the reviews we have of 600 towns and 1,200 active communities. They often take the knowledge they get from looking at our site or from our free weekly newsletter and go on road trips. We recommend that people explore lots of areas before they decide. Also, renting first is usually a very good idea to avoid unnecessary multiple moves.
People who are older than that might be looking for the same type of place or,once they are in their late 70s or older, they might be checking out assisted living, independent living, Continuing Care Retirement Communities (CCRC) or nursing homes. In many cases it is their children who are doing the looking. (You see the term "retirement community" can mean many things - it is a broad spectrum).
For the top ten retirements hot spots, click here!
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