Many people consider moving to another location in Canada when they retire. In fact studies show that one-third to one-half of baby boomers are likely to move in retirement.
There are many reasons to relocate. You might want to be nearer to your children or grandchildren. Perhaps you prefer a more pleasant climate or like the idea of living in a community more suited to retirees.
Thoroughly explore your options before you make a decision. Here are five key questions you should answer:
- Will your new home cost more or less than your current home? Obviously, the price of your new home will affect—for better or for worse—the pool of funds you have in retirement. A less expensive home can free up cash.
- Will your cost of living change? Consider the expenses, such as food, utilities and property taxes. These vary from location to location.
- Will your income tax situation change? Different provinces have different tax rates. Your overall tax bill could rise or fall.
- Will you have access to the medical facilities you need? Consider the quality of local hospitals, the availability of services you may need in the future and whether doctors in the area are taking new patients.
- Have you considered the implications of being closer to, or farther from, friends and family? Family dynamics change with proximity and distance. So do travel costs. It's important to have a strong support network no matter where you decide to live.
Make sure the move you’re considering is the right one. Talk to an advisor about your specific situation.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal advice.