While Florida remains the most popular state for retirees, not every current resident of the Sunshine State wants to stay put in retirement. Some wish to relocate.
Our financial planning firm works with pre-retirees in the Fort Lauderdale area, and we often tell them there’s no right or wrong answer per se to relocating in retirement. The answer depends on their specific goals and financial situation.
Fort Lauderdale has many advantages for retirees, such as warm weather, cultural events, senior services, and no state income taxes. However, you may prefer to relocate in retirement to other cities in Florida such as Tampa, which has a 15% lower cost of living. Or you may want to move out of state altogether to an area that provides the quality of life you’re looking for.
In deciding whether to stay put or relocate in retirement, consider factors such as:
Family Circumstances
When you retire, you might want to live close to family members such as your children and grandchildren. As such, a significant component to deciding whether to relocate is if your family lives in the area or elsewhere.
Cost of Living
Depending on your financial goals and your projected retirement income, you might want to relocate out of Fort Lauderdale to save money. For example, you may find other cities in Florida, including Orlando, Tampa, and St. Petersburg, more tax-friendly, as they have lower local tax burdens.
Considering factors like these could make other Florida locales more attractive for your retirement. Or you might want to move to another state or even outside the country to an area where everything from food to housing costs less.
That said, Fort Lauderdale has a far lower cost of living than many other large cities like Boston or Washington, D.C., so you could be in a good position if you stay put.
Lifestyle Preferences
As part of your retirement planning, you should consider what your ideal lifestyle looks like. Do you picture yourself lounging on a beach? Attending theater productions? Traveling the world? Whatever your retirement lifestyle preferences might be, consider how where you live aligns with these goals.
If Fort Lauderdale does not offer the lifestyle you’re looking for in retirement, or if you plan to travel so much that it makes more financial sense to downsize in a low cost-of-living area, then relocating might be a good idea. But if you see yourself utilizing the resources that Fort Lauderdale has to offer, then consider staying put.
In considering lifestyle preferences, also think about details like the availability of medical care or public transportation, as these might play a more important role as you age. The availability of public transit likely wouldn’t be the main reason for relocating, but if everything else is equal, it could be the deciding factor.
Talk with a Financial Planner
Deciding where to live in retirement depends on a confluence of personal and financial factors that can be difficult to weigh on your own. Speaking with a financial planner—particularly a financial advisor in the Fort Lauderdale, FL area that’s knowledgeable of the local environment—can help you assess whether you should relocate based on your preferences and personal finances.
Our Plantation, FL-based firm helps pre-retirees consider relocation as part of their overall financial and retirement planning. Schedule a complimentary consultation with one of our fee-only financial planners to discuss your personal situation.
This material was prepared by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax or legal advice.