Cost of living top determinant for lower income investors who plan to move upon retirement
It makes sense that household income would be a factor in determining where someone decides to retire.
But a new Spectrem’s Millionaire Corner survey of investor attitudes reveals that while household income does factor into choices, economic factors aren’t always the most significant.
In the survey, 41 percent of all respondents said they planned to move from their current location to a new location upon retirement (or did move, for those respondents who were already retired). The research group was then segmented into three household income subsets: under $100,000, between $100,000 and $199,000, and above $200,000.
The most significant factor for the under $100,000 segment was cost of living; 62 percent said that is a determining factor. There was little variation between the income segments on that topic.
But “cost of living’’ was not the No. 1 factor for the top income earners.
For the $200,000 and above segment, the No. 1 determining factor was weather (62 percent), followed by “proximity to family and friends” (60 percent) followed by “cost of living “59 percent).
For the lowest income segment, weather takes a distant back seat as a retirement destination factor. After “cost of living” (62 percent), “proximity to family and friends” was second (59 percent) and “weather” was a distant third (49 percent).
The lower income segment was far less likely to consider other determinants than the higher income segments. For instance, almost half of the higher income subset said they would consider “taxes” (49 percent), access to health care (48 percent) and “recreational opportunities (46 percent). For the lowest income segment, those determinants were less likely to factor in (taxes 34 percent, access to healthcare 40 percent and recreational opportunities 27 percent).
Less than one-third (29 percent) of the lowest income segment said landscape (beach, mountain, lakeside) would be a factor, while 44 percent of the highest income segment said landscape would figure in.
The final factor specifically suggested was “crime rate’’ but only 35 percent of the highest income bracket said they would look at crime rate when determining where to move upon retirement. That number dropped to 27 percent for the $100,000 to $199,000 subset.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.