Discovering Retirement (Back to Contents)

Deciding to Relocate

"Aging seems to be the only available way to live a long life."
Daniel Francois Esprit Auber

Deciding where to live in retirement is a big decision. While many people want to remain in their homes and familiar surroundings, others may want to find their dream home in a different climate.

In 2000, more than half (52%) of persons 65 and older lived in one of nine states, including New York, according to the U.S. Bureau of the Census. More than 2.4 million mature adults lived in New York, ranking the state third behind only California (3.6 million) and Florida (2.8 million). Other popular states were Texas, Pennsylvania, Ohio, Illinois, Michigan and New Jersey. The same data showed that most persons 65 and up lived in metropolitan areas (77.5%), with 50% of these living in suburbs.

Almost 75% of NYSTRS retirees choose to remain in New York in retirement. About 10% live in Florida. As of March 2004, at least one System retiree lived in every state. Washington, D.C., the Virgin Islands and 39 other countries also housed System retirees.

If you are thinking about a move, there are many questions you should ask and choices to consider before making your final decision. If you take the time to explore all the possibilities, you may be surprised to find you can make that place of your dreams a reality.

First Steps

Since your choice of locale will have an enormous effect on every aspect of your life — financial, social and psychological — you must first set your priorities and analyze the impact each possible selection will have on those priorities.

Your next step should be to consider housing options. If you choose to stay where you are, you will not necessarily stay in the same home. Economics, convenience, safety and ease of maintenance are just some of the reasons you may choose another type of housing. Or you may need to modify your current home.

Whether you are going to relocate to a new community or a different type of housing in the same community, extensive research will be the key to making the best decision. Use every available resource—the library, state departments of tourism, books, newspapers, local chambers of commerce and friends. The American Chamber of Commerce Researchers Association provides up-to-date information on housing, food, services, transportation, and health care in different parts of the country ($65 an issue; call 703-522-4980). If you are unfamiliar with the areas, visit these locations at various times of the year before deciding.

Facts to Consider

• Community Services
• Leisure Activities
• Cost of Living
• Climate
• Housing Choices

Community Services

As your needs change in retirement, you may become dependent on the various types of services that a community has to offer. Questions to ask include:

• Are there public and private medical facilities available to meet your present and future needs? How many physicians and hospital beds are there per 100,000 residents? Are there community health care centers, hospices, outpatient services and home health care facilities, including meals on wheels, visiting nurses and home aides?
• Are there public and private nursing homes? The cost of full-time care in a nursing home nationally averages $56,000 annually, but many are more expensive. The average cost in an area and the availability of space are important considerations.
• Are there offices for the aging offering a variety of programs and services? Are there community and senior centers providing not only recreational opportunities but assistance in the areas of tax services, transportation, meals and special discounts for seniors?
• If you wish to be employed, are there placement services for retirees? Are there state employment offices, nonprofit volunteer employment agencies and temporary help firms offering placement and skill training?
• If you can't drive, will public transportation be available? This could be a determining factor in helping you decide whether to move to a rural or urban area.

Leisure Activities

You probably already know the types of activities you want to pursue in retirement. Answering the following questions will help you determine whether these activities are available in a particular area.

• Are there a variety of cultural opportunities and facilities such as libraries and theaters? Will you be able to continue to participate in these activities as much as you did before you retired? Will you be satisfied if you have to settle for less?
• Are there educational facilities offering continuing education opportunities? Do the local school districts offer a wide range of adult education courses? Are there colleges and universities to give you the chance to train for that next career?
• Will you be near shopping malls, business districts, social clubs and senior centers? Do you plan to be a “mall walker” so you can exercise in comfort year round?
• Are there indoor and outdoor recreational facilities such as swim clubs, parks, tennis courts, fitness centers, hiking and bicycle trails, and golf courses?
• Are there professional organizations of retired teachers? Are there clubs for those who are socially compatible or those who share a particular interest?

Housing Checklist

There are many housing options open to you. Whether you decide to stay put or move, try to imagine how well your choice will meet your needs 10 or 20 years from now. Will your choice today meet your needs tomorrow?

Before deciding, review the checklist that follows. Safety and accessibility may be important considerations when choosing the housing that's right for you as you get older.

• Are there stairs to climb? What problems would this present if your physical capabilities changed?
• Do stairs have secure handrails and non-slip surfaces, and are they well lighted?
• Is there adequate lighting throughout?
• Are storage areas and closets accessible?
• Are there enough electrical outlets?
• Is the amperage adequate for all electrical appliances, including air conditioners?
• Do all the floors have non-slip coverings?
• Does the bathtub/shower have a non-slip surface and/or grab bars?
• Do windows and doors open and close easily?
• Can doors be opened from either side in case of emergency?
• Are the windows large enough to allow for use as an emergency exit?
• Are windows and doors well insulated, offering comfort and economy?
• Are the heating and cooling systems in good shape? When were they last updated?
• Is the plumbing up to code? Has it been updated? Are the water shut-off valves accessible?
• Are the sinks, shelves and cabinets in the kitchen adequate for your needs?
• Are the most frequently used rooms close together?

Cost of Living

If you are thinking of moving, don't forget to consider a new location's cost of living. Prices of housing, utilities, transportation and services vary by state and region. Interest rates on loans also tend to fluctuate depending on geography.

The biggest difference is often found in taxes, in terms of both rates and laws. Avoid unpleasant surprises by doing your tax homework. Before moving, investigate the following items:

• State and local sales tax rates;
• Special tax provisions for retirees or the elderly;
• State income taxes;
• Property and estate taxes; and,
• Taxes on pensions.

Keep in mind that no matter where you choose to live, your pension will not be subject to New York State income tax. However, if you move out of state, your pension income will be subject to the tax laws of that state.

Climate

Does a warmer climate seem more appealing now that your schedule is more flexible? Finding the right climate suitable for you can be challenging and may take as much research as other moving considerations.

You may ultimately decide to become a “snowbird” and head south only in the winter. This allows you to take advantage of the other seasons that you enjoy in the Northeast. On the other hand, moving to a warmer location year-round may improve your chances of enjoying good long-term health.

Average temperature, number of sunny days, humidity and precipitation are the weather features that can affect your physical and mental adjustment to retirement. Selecting an area with a climate that you're comfortable with and that allows you to remain active can literally add years to your life. In the long run, it pays to do your homework before settling on a place to plant your roots.

If you have targeted some possible areas for relocation, getting information about the climate in these locations is literally just a click away. There are numerous sites on the Internet that cater to retirees examining their living options. You can also get on-line at any time to check daily and long-range weather forecasts, as well as historical weather data.

Contacting area chambers of commerce and tourist bureaus might serve you well, too. These organizations routinely prepare marketing kits designed to attract businesses and visitors to the area. Climate is often addressed in these publications.

Calling friends or relatives that live in the area—or at least the geographic region—before making a decision is a must. Who better to give you a true perspective than those who already experience it? Ideally, you should try to talk with someone who was in a situation similar to yours and has moved from the Northeast. Ask them how they have adjusted to a different climate. They may share tidbits you have not even considered.

Most importantly, if you are seriously considering a new location, take the time to visit. Just as it is important for teenagers to visit campuses before deciding which college or university to attend, it is important for you to be absolutely sure you will be comfortable in this new environment. What may look good on paper and sound good in discussion may not actually feel right when you get there.

Whether you're considering a permanent or seasonal relocation, vary the times of year you visit. Even in warm weather climates, different seasons bring different conditions. For example, while it may be warm in Florida throughout the year, will you be prepared to withstand the oppressive heat often found there during the summer months? Other than the outside air temperature, summers in the South may not be different than winters in the Northeast—you may be homebound!

Housing Choices

There are numerous living arrangements available to seniors. When weighing your options, consider items such as age, health, affordability, equity, maintenance costs and taxes. Bear in mind that some types of retirement housing, such as assisted-living and continuing care communities, are more appropriate for older retirees with health problems.

Also pay close attention to the physical layout of the structure. Consider items such as stairs, lighting, storage, electric outlets, and floor surfaces. Do windows open and close easily? Are they large enough to pass through in case of an emergency?

Following are some types of housing available to seniors:

• Home Ownership
  For some people, home ownership — despite the responsibilities — provides benefits that cannot be measured. The right to do almost anything without having to secure permission is something many homeowners do not want to give up. The financial view of ownership is mixed. While ownership is usually a good investment with equity build-up and tax advantages, the ever-increasing costs of maintenance and property taxes must be considered.
• Homesharing
  At any age, two or more people can share a home or apartment. Generally, each person has a private bedroom and shares the kitchen and other living spaces, as well as sharing household chores. Faith-based groups (and others) may sponsor these homes. Some homeowners seek this arrangement to avoid living alone or to supplement their income.
• Elderly Cottage Housing Opportunities (ECHO)
  ECHO homes are small, portable cottages that can be placed in the back or side yard of a single family home — usually the home of an adult child. The resident lives close to family or friends who can provide needed support, yet each keeps her/his own living space. These units typically cost $25,000 and up.
• Apartment or Home Rental
  Renting an apartment or home can provide a great deal of freedom from responsibility. Often, renters are not required to perform home maintenance or yard work. As a result, expenses are reasonably predictable. Renting can also make travel or moving much less complicated.
• Condominiums and Cooperatives
  The uniqueness of a condominium or cooperative is that you own your residence in a multi-family building or development, but the grounds and facilities are owned jointly by all the residents. By purchasing a condominium, you acquire your own living unit and agree to pay a share of the expenses for maintaining the common area. With a cooperative, you buy a share of stock rather than the living unit. The entire facility is owned by the cooperative, but your share of stock entitles you to occupy a unit.
  
  For tax purposes, each condominium is individually assessed, and, as with a home, you are responsible for obtaining and paying your own mortgage. A cooperative is taxed as a single unit, with each tenant being assessed a share of that liability. Any mortgage on the cooperative is also a liability spread among all shareholders. Likewise, each shareholder would be entitled to a proportionate income tax deduction for the mortgage interest and property tax payments.
  
  When a condominium is sold, the sale must often be approved by a committee of the owners. The sale of a cooperative must often be approved by the owners' association.
  
• Mobile Home
  A mobile home is smaller and less costly than a conventional home. It is usually designed for minimal maintenance and maximum efficiency in the use of interior space. It comes in a wide variety of sizes and designs, so finding one that satisfies particular needs is generally not a problem. Many areas have strict zoning restrictions on mobile homes, and, as a result, you may be limited to a mobile home park. There is generally a monthly rental fee for your lot. The cost of the rental fee can vary considerably. Many parks have rules and restrictions on certain activities. You should be sure you can find a satisfactory location before you purchase a mobile home.
• Active Adult Retirement Communities
  These types of retirement communities differ as to the type of housing and services available, but they are all geared to the needs of older persons. To meet these needs, there is normally a wide range of social and recreational activities, specially designed housing, convenient shopping and transportation and, in some communities, medical care. There is, of course, a cost attached to all of this and if you do not expect to take full advantage of the available activities and services, you may not get your money's worth. Another possible drawback for some will be the limited contact with children and younger people. If you doubt you would be happy living exclusively with people your own age, a retirement community is probably not for you.
• Continuing Care Retirement Communities
  Continuing Care Retirement Communities are retirement communities offering a variety of living arrangements, and recreational and social activities and services. In addition, they generally offer an assisted living or health center for residents who can no longer live independently. Residents move in while they can manage on their own and can remain for the rest of their lives, regardless of how much assistance they may require in the future. These communities are places where people can live their later years knowing that their long-term care needs will be met. There are entry fees that may or may not be refundable and monthly fees which will differ in each community, based on the type and size of residence, amount of health care provided and the number of meals included.
• Assisted-Living Communities
  Assisted-living communities combine housing, supportive services, personalized assistance and health care in a home-like atmosphere. The facilities can vary from moderately priced group homes to more expensive high-rise apartment complexes.
  
  Services include meals, laundry, programs and 24-hour staffing. Many provide personal-care needs such as bathing and dressing, administering medications and arranging health care therapies. The typical assisted-living resident is a woman in her 80s who is single or widowed.
  
  For more information, contact the Assisted-Living Federation of America at (703) 691-8100 or www.alfa.org.
  
• Education-Centered Retirement Communities
  An evolving type of senior housing, these senior residential communities are being built on or near U.S. colleges and universities. Residents of these communities are invited to attend classes, concerts and sporting events on campus. Some seniors teach classes; others perform in intergenerational choirs. These communities are attractive to seniors because they offer independent living in an environment in which continuing education, health care facilities and amenities such as banks, fitness centers, swimming pools and restaurants are readily available.

Protecting Your Wealth & Health | Contents | Your Other Benefits: Social Security and Medicare