When people think of retirement, it brings up different thoughts for different people. Some think of leaving work behind and others think of doing more meaningful and heartfelt work where the money is less of a concern. One of the factors that we all have to face is what sources of income we will have in our retirement years.
I don’t believe anyone sets out to intentionally not have a retirement plan. Sadly, many believe it’s the governments responsibility and they end up having little money and no control over their golden years. Others have planned well – or so they thought – and some event beyond their control has changed their circumstances, whether it was Enron, 9/11, or some other catastrophic event.
One factor, that I suggest that everyone looks as is where they want to live in their retirement years. Many in the US look to states such as Florida and Arizona for their climate – as well as low cost of living. Thankfully those states have both made it on AARP’s list of the top 10 states to retire in. Keep in mind, that not all of these states on the list have low costs of living.
On the contrary, there are many states that made AARP’s list of top 10 states you don’t want to retire in, and many of those are due to financial factors such as high taxes and high cost of living. Thankfully, I left a state (Maryland) that was on the “worst 10” and moved to a state (Arizona) on the “best 10.”
Another factor to keep in mind is whether or not you want to retire in more than one place. In Arizona, we have lots if part time residents, referred to as snow birds because we they migrate here annually to get away from the snow. If that’s how you’d like to live, then make sure you have a retirement plan that affords you the means to do that.
As for me, I am shooting for an early retirement and one that allows me to travel as well as live in more than one location. I’ve got a ways to go give some of the financial setbacks in the real estate market, but the good news is that I have a plan. Do you have a solid retirement plan?