By : Melissa Hathaway
Retirement is about winding down, taking a stock of the amazing things you’ve accomplished during your lifetime and spending your time with those you love. However, this relaxing period is often tarnished by indecision and guilt, often due to lack of money. This is made even worse if you’re considering early retirement. A huge contributing factor to the cost of retirement is where you decide to move. You may want to stay where you are, you may want to move closer to friends or family, or you may want to move to a retirement community. Here are your options and what they mean for you financially.
If you stay in your current home, you may have already settled your mortgage and, although there’s no need for you to rush to do this upon retirement due to interest rates, this will mean you won’t have to make any more repayment in regards to your home. You’ll therefore only have to pay for your usual utility bills and living expenses. The other benefits of staying in the same place is that everyone knows where you are and there won’t be the added stress of switching addresses. However, if you’re looking for a change of scenery, living in the same place may not make you feel very relaxed and you may want to consider other options. Selling your current home and downsizing, although stressful, may give you a considerable amount of money to enter retirement with.
If you do fancy a complete change of scenery, there are plenty of locations ideal for retirement. For example, if you’re after sunshine and stunning scenery, Malta, Portugal, Barbados, Spain and Greece are beautiful, warm places to retire. Whereas Thailand, Jamaica, Morocco and the US, although often very hot, are also all ideal places to retire to if you also wish to experience a different culture. A lot of Asian countries, like the Philippines are also incredibly cheap to live, making them a great choice if you’re on a tight budget.
Many choose to move closer to loved ones upon retirement. However, this isn’t always possible due to a combination of finances and availability. Firstly, if this is your only considerable option, you may want to reconsider early retirement. Perhaps try working part time until you have enough money saved in order to retire comfortably. If you’re retiring early because of other commitments, for example, looking after a family member, look into the other options you can afford, such as hired care.