Five Questions to ask yourself about where to retire

I recently saw a list of the world’s best places to retire in 2014 and it got me thinking more broadly about this issue of aging in place – it’s not just about your house. A wider question is whether you want to retire in your current country , city or location. Moving country or even city is quite a major undertaking at any stage but becomes increasingly challenging as you get older. We’re not just talking about the physical aspects of the move but the emotional aspects as well. So what questions do you want to ask before making that major move?

1. What facilities do I really need now? Cities and countries may have an appealing list of activities, spaces and so on but if you are unlikely to utilize many of them does it make sense to make a major move. If you are an indoors person more comfortable in curling up with a good book, then does it matter that there are great hiking trails and parks in the new location?

2. What facilities am I likely to need in the future? As we age we are likely to need more health facilities for example? I know many people who have a dream of retiring from their jobs in the city to move full time to the country. While country living may seem beautiful how far is it to the nearest doctor, clinic and so on? Will you feel comfortable or safe in a more isolated location as you get older or will you wish to be closer to other neighbors? Will you need to be close to public transportation to reduce reliance on your own vehicle if you do not or cannot drive?

3. How will my significant others be affected by it? Is your spouse as gung ho about the move as you are? What about children, grandchildren, siblings? Do they support the move? Will they visit? Can they visit? If you’re moving to another country for example visas may be required by family members who want to visit – Will they be able to get them? What about plane fare – can they afford to visit? Will they have the time from work or school to make these visits?

4. What will it realistically cost for me to move? There are clearly costs of relocation but move beyond those. If you are switching countries will you sell some of your possessions and then have to purchase on the other end? Will you require additional items that you don’t currently need such as warm weather clothing? If you are selling your house and purchasing a new one what is the market like in each location? In general it’s probably best to underestimate the sale price for your old house and overestimate the costs associated with your move.

5. Why am I really moving? What’s the motivation behind your move and will you achieve it? Before packing up and moving to be near relatives for example find out whether you will be wanted and included in their lives. Perhaps you’re moving because you had vowed to do so years ago. Perhaps you are lonely where you are but what will change with the move? Maybe it’s a good idea but maybe not. Dig deep and make sure that you really want to make the move.

Moving is expensive in terms of money, time and energy. A good move is worth it but if you haven’t thought through it you may live to regret it. Take the time to make the right decision for you, your pocket and your family.

Where did all the money go?

Reading today’s paper I see a headline about a former musician who is practically destitute and unable to care for his medical needs. Very sad but unfortunately not that unusual. We hear these stories all of the time. The money is good at one point and then it disappears.

We’ve talked a lot about saving for retirement but it occurred to me that it could be even more difficult for those who don’t earn steady incomes. They may earn a lot in one month or year and practically nothing in the next. Unfortunately earning a lot can be deceptive because you may think that it will always be there. It happens with best selling authors, artistes and even lottery winners – the money is there and then it goes and in many cases the person is worse off than they were before. Even worse than the loss of money is the loss of self-esteem that goes along with it. Many people fall into depression when they realize how they have squandered a windfall and now have nothing to show for it.

So, what to do if you have a windfall of one type or another. This may be my shortest blog ever because I have one answer – get professional advice and help! A financial planner will help you to make a realistic budget and to put the rest of your money to work for you. Taking that step sooner rather than later gets you in the habit of living conservatively and most importantly restricts your making careless financial mistakes that you can’t recover from. These include giving large gifts to family members and hangers on when you really can’t afford to do so despite appearances. Wealth can be a blessing but you need to nurture it so that it continues to be so! Your financial planner can be particularly helpful in setting up a pension plan so that you have enough for your retirement years.

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