After decades of putting in the work and saving up, you’re finally ready to hang it up and retire. Retirement is meant to be a time of relaxation, but for some people, there is the question of whether or not to move out of the home they’ve created. Here are just a few reasons that it’s worth considering packing up the household and heading to a new location to enjoy your golden years.
1. You can use a change of scenery.
Oftentimes, when you save up your money through a registered retirement savings plan (RRSPs), you have a set goal in mind with your contributions. An RRSP encourages people to put money away for retirement with benefits, capitalizing on growth through tax breaks. This is then converted over to an RRIF, or a registered retirement income fund. These plans are also designed to help with the home-buying process in retirement. A home buyers’ plan (HBP) lets people borrow up to $35,000 from an account to place toward a down payment, locking down that new home so you and your loved ones can settle in.
There could be a retirement destination that you’ve had in mind for some time, so by having locked in on a spot, you’re ready to focus on the move for a full-time or even part-time “snowbird” relocation. Be sure to reserve a moving truck rental for the move, putting down a refundable deposit if you need to adjust the timing. You’ll be able to find low rates by locking in the reservation earlier, exploring great options to help with your relocation, especially if you’re taking on significant mileage. This could also help you assess what makes the trip with you to your home, accommodating a small move instead of a fleet of trucks.
2. You can take time to focus on your hobbies.
Retirement affords you the time to focus on the things that you love doing in your free time. When assessing the belongings that will make the move with you, be sure to bring those enjoyable activities and hobbies with you. Make sure to work with movers who understand the importance of those possessions.
After years of saving through a retirement plan, you may be able to bring your love for certain activities to your household. For example, avid golfers may relocate to a house near a course to get a few holes in with ease. Memberships for certain clubs will afford competitive rates that pique your interest. Establishing a mutual fund early on could lead to the dream home that has a beachside or in the area where you’ll be able to spend as many additional days as you want to enjoy your activities with your spouse and friends.
3. Visits from loved ones are simply a time for fun.
While it’s always fun to welcome friends and family over, it takes on a different meaning when your home becomes a bit of a vacation destination for your loved ones. You may want to have some of your children’s or grandchildren’s belongings at your house to welcome them for the stay. Retirement savings can be converted into a household large enough to accommodate a few extra rooms to welcome guests during any time of the year.
The best part about these visits is that they allow you to not only provide accommodations but also be the entertainer for the people you love the most. If you relocate to a warmer climate full time or just for the winter months, you’re providing them with an affordable exodus that only requires pickup and dropoff at an airport or train station. Consider your financial options and different types of investments to make the move that makes the most sense for your retirement years.