In addition to investment variables, there are many non-investment variables to consider when you choose where to retire.
You may have developed a long-standing network of family, friends and neighbors that you do not want to move away from.
Perhaps while you may not want to move out of the area, you may want or need to downsize your home.
Maybe you are considering retiring to the South where you can spend more time enjoying a warmer climate instead of the longer winters up North.
Have you considered the impact of retiring to states that do not have a state income tax?
Have you researched which states have the best healthcare?
Cost Of Living can play a significant role in your retirement income and lifestyle plan.
The cost of living is the total amount of money required to live in a certain area to cover your basic necessities.
Cost of living calculations include housing, food and taxes. They may also include such expenses as transportation, health care, entertainment and education.
Cost Of Living Comparison Calculators
Cost of living calculators are useful in comparing the expenses associated with different cities or regions if you are considering moving.
Bankrate.com has developed a cost of living calculator for cities across the country that that can help you understand the cost of living disparities between two metro areas. *
For example, the chart below illustrates the significant cost of living differences from Stamford, CT, to other places.
* Note: You can conduct your own analysis by visiting the Bankrate.com web site.
The Bottom Line
The cost of living of where you want to retire can make a significant impact on the lifestyle you hope to enjoy during retirement.