Considerations When Looking for a Retirement Destination
The average age of retirement has risen from 63 to 67 years old. In addition, according to the AARP, 40 percent of baby boomers now say they plan on working until they die.
If you are part of the other 60 percent, you may be tired of living in the same place. In fact, if you have reached the age of retirement, you may be looking for a new locale to spend the rest of your life. Whether you have your eyes set on Florida (you should note that Florida has no income, estate or inheritance taxes), or any place else, it’s important to do your research prior to moving.
Consider the following points before choosing a retirement destination:
- State income taxes — First, you should compare the state income taxes of potential destinations. Are they more favorable where you are currently living? If the state income taxes are substantially higher than where you live now, you may have a stressful retirement ahead if you decide to move.
- Estate tax implications — What are the estate tax implications of moving to a new location for retirement? A high estate tax can reduce the amount of inheritance your beneficiaries receive.
- Temporary residence — Before simply moving to a new place to spend your golden years, you should attempt to live in the area temporarily — think longer than a vacation — in order to gauge whether it could work for you long term.
You’ve worked hard your whole life. Now it’s time to enjoy your retirement. One of the best ways to reduce stress and obtain peace of mind later in life is to create a sound estate plan. Consult a Tampa, Florida estate planning attorney for advice on relocating for retirement and to learn more about preserving your legacy for your loved ones.