According to Hire A Helper, a marketplace for online moving services, over 338,000 Americans retired to a new destination in 2023. This figure represents a 44% jump in the amount of retirees that moved away in 2022.
The study also found that 11% of Americans who retired out of state moved to Florida. While moving during retirement is common as Americans try to save money on living expenses or simply want to live in a warmer climate, an often overlooked issue is that this may not be the best decision for everyone.
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GOBankingRates explores five steps retirees can take if they regret moving for retirement.
Step 1: Accept That There’s an Adjustment Period
“It’s important to remember that where you live doesn’t have to be permanent,” said Tyler Meyer, a certified financial planner (CFP) and founder of RetireToAbundance.com. “An adjustment period is normal, and giving yourself time to settle in can help.”
If you’ve moved away from your community in retirement, it’s natural to feel regret since starting over with a new routine can be challenging in your golden years.
“If you aren’t sold on moving back, you can practice patience while you work on building a life somewhere new,” remarked Erika Kullberg, an attorney, personal finance expert and founder of Erika.com. “Making friends, getting involved in the community and getting into a new groove takes time.”
If you moved away in retirement, there’s a chance that this was your first significant change in decades. It may feel uncomfortable initially because you could be set in your ways, and building new routines takes time.
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Step 2: Know That You Can Move Back
Retirees who regret moving have to remember that they’re not stuck because moving isn’t a permanent change.
“If the new location simply doesn’t feel right, you always have the option to move back. Chances are, your previous community will welcome you with open arms,” Meyer added.
This could be one of the most important steps because it’s crucial to remember that you’re not stuck. There’s nothing wrong with moving back or switching your location until you find something that’s the right fit.
You worked hard in your career to retire, so you want to make the most out of your situation.
Step 3: Get Creative About Your Living Situation
Discussions about retirement usually revolve around finances and planning expenses. One topic that is less analyzed for retirees is the idea of community and relationships.
As a retiree, you may move away to downsize or to save money on your living expenses. While this is a great way to save money, the one major setback is that the move could force you to leave your friends and family behind.
Kullber noted that you can still downsize if you want to move back.
“For example, if you sold a large family home before moving, consider renting an apartment or condo instead upon your return,” she added.
“You may also find it makes sense to move to a more affordable but closer area. For example, if you lived in a big city pre-retirement, consider a cheaper suburb instead. Now that you have more time on your hands, driving to your favorite spots or to visit loved ones won’t be such a burden.”
If you move away to save money and regret the new location, you can still reduce living expenses without despising where you live. You could look into using your equity from selling your home to rent an apartment in a smaller town, or you could rent out your new home as a rental property.
The important takeaway is that you can get creative about cutting living expenses so that you don’t have to stay in a location that you’re not fond of.
Step 4: Refresh Your Budget
Kullberg pointed out how you may need to refresh your budget before making any major money moves in retirement.
“Be critical about what parts of your budget served you well so far during retirement and which parts you need to reassess,” she elaborated. “Now that you’re living on a fixed income, budgeting is more important than ever.”
You can use this time to refresh your budget and plug in the numbers to see what you can afford next. You may be able to sell your new property and find something cheaper in your original state. You could rent out your unit and use the cash flow to help cover travel expenses as you figure out the next step.
Step 5: Test the Waters Next Time
“While this discussion focuses on dealing with regret, it also highlights the importance of careful planning before a major move,” noted Meyer. “I encourage my clients to test the waters by renting for at least six months in a new area before making a permanent decision, such as purchasing a home or vacation property.”
If you regret moving and want to change locations, you may want to heed this advice about embracing a trial period to ensure the new location fits your vision for retirement.
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This article originally appeared on GOBankingRates.com: 5 Steps To Take If You Regret Moving for Retirement
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