Retirement Housing - What Factors Should You Consider Regarding Housing Needs During Retirement?

The place where you live can have a significant impact on your financial needs. In the years before retirement, use vacations to explore areas and cities where you might want to settle. If you find a place you like, go there at different times of the year. That way, you will be able to experience the climate and environment. Meet people who live in the area and learn about activities, transportation, and taxes.

Retirement Relocation Pitfalls

Consider the downside of moving to a new location. People sometimes find themselves stuck in a place they really do not like. Some retirees find they miss their children, grandchildren, and friends and relatives left behind. Other retired people move to the location of their dreams and discover they have made a mistake financially.

Researching Locations

Here are some tips from specialists on how to research taxes and other costs before moving to a new area:

• Contact the local chamber of commerce for details on area
property taxes and the local economy.
• Contact the state tax department to research income, sales,
inheritance taxes, and exemptions for retirees.
• Read the Sunday edition of the local newspaper of the town or
city you are considering.
• Check with local utility companies to estimate energy costs.
• Visit the area in different seasons and talk to local residents
about the cost of living there.
• If you plan to buy a home, take time and rent a home first.

Types of Housing

Even if you do not move to a new location, housing needs may change during retirement. Many retirees want a home that is easy and inexpensive to maintain, such as a smaller house, a condomin- ium, or an apartment. Having access to public transportation, stores, and recreation areas is also important. Figure 15.4 presents several housing options.

A great majority of people prefer to grow old in their own homes in their own communities. Recognizing this trend, building suppli- ers offer everything from lever door handles to faucets that turn on automatically when you put your hand beneath the spout. Remod- eling to accommodate aging homeowners is creating a demand for these products. In addition, contractors are building universal design homes from scratch that can accommodate people who use wheel- chairs and walkers or those who simply want more convenience.

Many elderly people move into assisted-living facilities during their retirement years. An assisted-living facility (ALF) is a resi- dence complex that provides personal and medical services for the elderly. Assisted-living facilities offer everything from minimal ser- vices to full, continuous nursing care. They may vary greatly in qual- ity, but ALFs are increasingly popular with elderly retirees, some of whom are no longer able to live alone and care for themselves.