Why You Should be Retiring to These Spots

Who’s ready to retire?

In other words, or to pose another question regarding retirement: When do you plan to retire?

These questions are ones that are pertinent and should be part of the thought process when you ultimately determine if and when you are prepared to retire.

One question that often gets overlooked for some is not so much the who or when but “where.”

You have some would-be retirees on the cusp of calling it quits, work wise, and others who are a few years away but still plan accordingly that are all about relocation as part of retiring, moving away from cold, damp basements, blustery cold winters and temperatures below zero and start giving thought to places that are warm year round, like a Florida, North Carolina, South Carolina or even Arizona, Texas and places of that nature.

Initial reports would suggest that retirement and picking up and moving away are relatively low as far as popularity goes, but that doesn’t mean you still don’t have a contingency of retirees who want to migrate elsewhere.

Studies suggest about 5 percent of the retirement population end up leaving to go elsewhere when retirement comes calling.^[1]

While that number, circa 2015, was what you’d consider low, consider new data that has arose in recent years.

As of 2016 and a study that showed the recent retiree numbers from 2010-2015 have approximately a 17 percent increase in retirees who aren’t just traveling abroad for retirement but are opting to stay up; that 17 percent represents the number of Americans retiring outside the United States, totaling about 400,000 American retirees.^[2]

Another number that jumps out at you is the number of retirees who want to move to some other destination when they retire.

As a younger generation of would-be retirees start to contemplate retirement, even if it is a few years (or decades away), the propensity of most is to pack their bags and retire somewhere other than the home they currently are residing in.

Three out of 5 Americans want to retire elsewhere, according to a 2015 study, with 73 percent between 18 and 29 saying they’ll move when they’re done working, and not much of a drop off when you look at ages 30-49 (62 percent) and 50-54 (50 percent).^[3]

The big question surrounding relocation and retirement isn’t so much the type of weather they desire or how retirement looks through their eyes when the time comes, but more financially driven as far as what states make the most sense to retire to, ones that aren’t going to have a cost of living skyrocket from presumably where you are now, from one month to the next and your expenses.

One of the key drivers of keeping individuals from moving for retirement is quite simply not having enough saved or the thought of selling a house they own (or are close to owning) only to have another payment on their hands, whether it be rent or buying a new place.

Roughly 29 percent of the population aged 55 and older have nothing saved for retirement, a staggering thought when you consider retiring in a few years, the least of which would be thinking you could afford to go elsewhere.^[4]

For some, however, the glamor and lure of retirement starts with sandy beaches, better weather and the idea that the financial stress of moving and paying for a new place pales in comparison to the quality of life you want for your “golden years.”

But that doesn’t mean you should let those beach vibes or warm weather thoughts go to your head as far as location goes.

Several states and areas in general boast tremendous retirement perks, focusing on that tranquility you so desire but also financially feasible and not out of the realm of being realistic.

Here’s a few options that make sense, money wise.

Cape Coral, Florida: Modest living means and warm weather meet in this Gulf town

If you had to make a retirement destination wish list, and had to take a guess at the most popular places to retire, do you think and believe Florida would make the list?

If you said, “absolutely” or even just “yes” to that question, you'd be wrong.

The most popular list of places to retire does not include anywhere in Florida, with Arizona, Colorado, Idaho and Minnesota and North Carolina as the top 5, followed by South Carolina, South Dakota and Tennessee.^[5]

That would suggest Florida is probably pretty expensive to live in, even if you’re just there just to retire.

But one location in Florida gives you the option of living close to the Gulf of Mexico for around $983 for rent and just over $1,200 for a mortgage, and that’s Cape Coral.^[6]

That probably is in line with what you’re spending now (or even less in some cases, and you still get that warm Florida sand and sun, minus the up-charge.”

Phoenix, Arizona: Golfing, warm weather, no humidity sounds like a bonafide winner

The average person probably hasn’t heard of Cape Coral, Florida, and that’s perfectly fine. Finding a diamond in the retirement rough that is close to the water is a good thing.

But most everyone has heard of Phoenix, with Arizona as mentioned earlier being one of the more lauded and revered retirement destinations.

As much as you’d assume Phoenix is an expensive place to live, it’s really not.

Not only do you have plenty of time spent on a variety of golf courses, not to mention warm weather and comfortably warm winters, you also have just $7,500 a year put toward rent on average, and a little over $3,000 in groceries.^[7]

And if you still can’t get past the beach or your toes in some warm water, don’t worry.

Not only is Phoenix a lot less expensive than you thought as far as retirement destinations, but you’re only 220 miles away from a little slice of beach heaven known as Rocky Point, Mexico, or what people in Arizona aptly call “Arizona’s Beach Getaway.”^[8]

Fayetteville, North Carolina: City life and outdoor fanfare is best of both worlds

Retirees often don’t want to look at retirement and moving as a means of “settling down” or spending all their free time at the beach, just soaking up sun and acting as though their life has ground down to a near halt.

Fayetteville is one of those cities that truly offers an eclectic mix of outdoors and a city life that is bustling, all for less than $1,000 per month. The monthly expenses come in at around $963 per month, with about $313 toward your grocery bill.^[9]

More information about Fayetteville would suggest, too, that you would save money whether you bought a place or decided to simply rent.

Latest information says the average home purchase in Fayetteville is around $127,500 versus a national average of $184,700, with mortgage payments around $940 versus $1200 (national) and renting at $884 versus $949 (national).^[10]

So, in a nutshell, Fayetteville is retirement heaven, and cheaper than the average U.S. city.

Augusta, Ga: Total annual income looks good on paper, and this city delivers in person

If you figure out how much you’ll need to retire, look no further than a simple formula.

When you’re 67 years of age, you’ll need 10 times your salary in total for retirement.^[11]

So if you’re earning $70,000 per year, you’ll need $700,000 to retire.

If you average that out by year, assuming you’ll live another 20 years, that’s roughly $35,000 per year you’ll need, so about half of your working days income.

Certain retirement locations often come with higher price tags, but one that offers up warmer temperatures and all the proverbial bells and whistles you’d want from a place to call home when you’re retired is August, Georgia.

Ironically enough, the average annual expenses for living in Augusta is approximately $35,781, with $6,672 spent annually on housing, $3,385 on groceries and another $6,300 on transportation, and $3500 on utilities.^[12]

Another selling point of Augusta also has to do with the question posed about buying a home versus moving to retirement destinations and opting to rent.

The media home value in Augusta is under $100,000 at around $99,000.^[13]

Of course, August isn’t just about the cost of living, so don’t think that this low-cost option isn’t filled with a full plate of nightlife, outdoor activities and pretty much the most well-rounded option on this list of choices.

Deciding where to retire and when, for that matter, isn’t an easy endeavor.

The “when” is one of those “when do I ultimately decide I can afford it,” and then when you factor in moving and adding expense potentially, the thought of saying so long to that steady paycheck is almost unfathomable.

But illustrated in the aforementioned list are places that aren’t necessarily cash cow cities or towns, but instead opt for a serene approach to retirement life, only without the need to be a millionaire twice removed just to even think about real estate when you retire.

The dream of millions is to work, do well in your career and then finally bid a fond farewell to a job that served you well financially and lounge, walk on the beach and put your toes in at least a little bit of sand along the way.

Traveling, while staying put in the home you live in now, is always an option, but doing that with any regularity might actually become more expensive over the next 10, 15 or 20 years into retirement.

A recent study suggests that ages 45 to 65 are trying their best to set aside anywhere from 20 to 40 percent for travel, post-retirement but barely 10 percent (13 percent) think that’s possible.^[14]

That leads you back to believing that relocation is possible.

Some argue that the retirement dream in general is just that, “a dream,” suggesting that you can’t possibly save as much as you want or comfortably exist in retirement much less flourish with a move to someplace tropical and tantalizing in the same breath.

But if you have saved diligently and want to move when you retire or are part of a younger generation who sees that as their only path of travel into retirement, rest assured it’s possible if you’re paying attention to the “when, how, who” without overlooking the “where,” too.

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