Proximity to family trumps other factors in deciding where to retire
Perhaps as important as determining when to retire is deciding where, and what applies to real estate is especially true for selecting just the right spot to spend your retirement years: Location, location, location.
Roughly 20 percent of baby boomers plan to relocate in retirement, the AARP reported in 2012. That’s a lot of boomers. Between 2000 and 2011, the population of boomers ages 65 and up grew 18 percent to 41.4 million senior citizens, according to a 2012 Administration on Aging report.
Spectrem’s Millionaire Corner recently asked Affluent investors which factors go into figuring just what is the ideal retirement location? For the highest percentage of respondents (38 percent), proximity to family trumps such considerations as climate, recreational and cultural opportunities and even taxes.
Recreational opportunities are of primary importance to 34 percent of Affluent respondents, a reflection of the vitality of baby boomers whose increased life expectancy (this generation is estimated to have at least 30 years of retirement) has placed added importance on maintaining a healthy lifestyle.
A first quarter Spectrem’s Millionaire Corner wealth level study of Millionaire households finds an increased emphasis on health concerns over last year. Two-thirds of respondents said they are concerned about the health of their spouse (vs. 62 percent last year). Similarly, 60 percent expressed concern about their own health compared with 58 percent in 2012. More than half (52 percent) are concerned about spending their final years in a care facility.
Affluent respondents placed significantly more importance on proximity to family and recreational opportunities as factors in their decision of where to retire. Less than 10 percent attached similar emphasis on cultural opportunities (8 percent), state income taxes and climate (7 percent each) and scenic beauty (5 percent).
Respondents under the age of 40 placed the highest importance on a location’s cultural opportunities, while boomers ages 51-60, who are generally on the cusp of retiring, place the highest importance on state income tax (9 percent) and recreational opportunities (35 percent) than do their younger and older counterparts.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.