On A Budget? How To Find The Best Places To Retire

Keeping your cost of living in check is one way to stretch your dollar and make the most of your savings. But it’s also important to choose a location that lets you do the things you love to do. As you begin thinking about the best place to retire—you’ll find that some cities, states, even countries, are more “retiree-friendly” than others —so it’s best to take some time to figure out what’s right for you! Here are some things to keep in mind:

The cost of living. You’re going to want to look at several factors when trying to decide the best cities to retire in—the main one is the cost of living. Somebody who doesn’t want to spend a boatload of money each year on rent, a mortgage, food, taxes, and other expenses will want to be aware of what it costs to live in their chosen destinations.

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When you’re shopping around for a landing spot, check out the cost of living index (COLI for short) in the areas you’re exploring. The COLI takes into account the average costs associated with housing, food, and other consumer goods that will naturally increase in price over time. When looking at a COLI, consider which city is used as a base for the other locations you’re comparing. For example, if Los Angeles is used as your base, it will be a 100. You can then compare other cities directly against L.A. by looking at where they fit on the COLI. If another city you were considering is Phoenix, it would have a COLI of 59.8 because it’s 40.2% less expensive. Do your research to learn as much about the cost of living in your target cities as you can before making a final decision.

How you’ll spend your time. Whether you choose to play golf six days a week, spend your time on hobbies, or want to take up globetrotting, it’s going to cost you. Yes, you’re probably bringing in money every week, but remember that it’s coming from a savings account rather than a regular paycheck. When you’re looking at the best cities or states to retire in, consider how your retirement plans fit in with what is available to do. Playing golf all year probably won’t be in the cards if you choose to move to North Dakota. Likewise, your travel time to an airport will be much longer if you choose to live in a rural area compared to somewhere that’s situated closer to a metropolitan area.

Try it before you buy it. Don’t hesitate to visit different locations in your quest to find the best place to retire. It’s an excellent way to “take it for a test drive” and get a good look at different neighborhoods or cities. Who knows, you might spend a few days in an area you once thought was your dream—only to find you don’t really like it at all. Instead of spending all your time doing touristy things, take time to do everyday tasks like shopping at the grocery store, chatting with the locals, driving on the freeway, etc. The best vacation destinations aren’t always the best places to retire.

Think outside the box. Not everybody has to retire in the U.S. Many people choose to venture outside of their homelands and retire overseas. Aside from the adventures that await in a new country, the overall cost of living for things like healthcare, your prescription meds, and housing may be much cheaper. For instance, many ex-pats are choosing to retire in Central America and the Caribbean rather than staying home.

Talk to an expert. When it comes time to budget for retirement, it’s best to speak with someone who’s familiar with the ins and outs of 401(k)s, IRAs, investments and beyond. Hiring a retirement planner to help you go through your finances is a great way to get the financial side of retirement in order. They can help you build a spreadsheet that sets milestones and helps you reach your goals.

There are a lot of things you should consider when looking for the best place to retire, but the most important is finding a place that makes you happy. No matter what the city or your neighborhood has to offer, find somewhere that you love.