Four Financial Implications to Contemplate
For some people, living near their grown children is ideal. For others, it’s better to have some separation, even if it’s only an hour or two drive. Each family is different, but how do you know if you should move closer to your kids after you retire?
You may love the town that you live in now, but your children have moved away. As they continue to grow and have families of their own, a thought may cross your mind, “Should I consider moving closer to my children and grandchildren?” If so, what are some financial contemplate to keep in mind?
Cost of Living
Do a cost-comparison between where you live now and the area in which you’re considering moving to. What are real estate prices like? Take a look at the average home costs in your area including property taxes, insurance, maintenance, and upkeep. Check out local restaurants, grocery stores, shops, and any other daily expenses that will impact your budget.
Emotional Cost of Relocating
One of the biggest considerations you’ll need to make is what your living situation will look like..
Will you be happier being far away from close friends and familiar faces? Many people I know who have relocated have found it challenging to rebuild a strong social network late in life. While your children and grandchildren may be physically closer than before, that doesn’t mean they will have as much time to spend with you as you ‘d hope. It can take time to make new friends, especially at an older age. Will your children and grandchildren be able to fill the gap? The answer is different for everyone. Do think about it.
Should you rent or own
You need to weigh the pros and cons of renting versus buying a home? When you’re looking for housing, you’ll also want to consider functionality. Will you be hosting celebrations and holiday dinners in your home, or do you primarily plan on spending time over at your child’s place? If so, then you may find it best to downsize to a condo or apartment.
If you want to be able to have grandchildren sleepover, host Thanksgiving dinner, and entertain friends and family, then you’ll want to look for a piece of property that can accommodate your needs.
Medical and Health issues.
You’ll also want to determine how monthly expenses like health care and insurance will vary as well. Medical concerns are fairly common in late-life. Many have chronic conditions that require medications, monitoring and other forms of ongoing management. So, this would be a question and concern to the health while being with children and grandchildren because they would be busy in their stuff and often make a decision due to health emergency or mental decline.
Choosing to move to be closer to adult children can be one of the biggest decisions you make later in life, so be sure, the decision you make is right for you. If you are not sure that retiring to the town where your grandkids live is right for you, there are other options. You can make a tradition of back and forth reciprocal visits, or consider spending part of the year there. Lots of families enjoy planning vacations together, perhaps renting a beach house that accommodates everyone. Choose carefully, choose wisely.
