Key Points
- Only 6% of retirees migrate; Florida and North Carolina are the top U.S. retirement destinations.
- Before moving, we recommend a trial stay to get a feel for the place, its price, and any downsides.
- Think about the tax consequences, availability of healthcare, and transit demands of the retirement location you choose.
Moving for Retirement: Where and How to Relocate
There are several reasons to think about relocating after you retire. Perhaps you’d want to cut your cost of living, or perhaps you’d like to gain the new freedom that comes when you’re not bound to work.
But if you are considering making a move, there are a few things to do before — including weighing the advantages and downsides thoroughly.
Understanding retirement relocation
Retirement migration may seem appealing, but in reality, relatively few older people actually change their lifestyle in this way.
Indeed, the Joint Center for Housing Studies at Harvard University has discovered that just 6% of families headed by someone age 65 and older move.
Florida and North Carolina were the most popular destinations for retirees who moved in 2025, though Southwestern areas like Mesa, AZ, and North Las Vegas, NV, also saw a significant influx of seniors.
But the idea of retiring overseas is also gaining momentum. More than 760,000 beneficiaries residing outside the United States receive Social Security benefits each year, up from 307,000 in 2008, according to the Social Security Administration. But this figure is probably an underestimate, since many expats have their Social Security cheques deposited into U.S. bank accounts.
Steps to take before relocating for retirement
It involves several financial and non-financial considerations when planning a retirement move. You should follow these six important steps when determining where you want to reside as part of your retirement preparation.
1. Do a test run
You could assume you want to retire in Florida only because you like going on vacation there. But have you ever experienced a summer of 100-plus-degree temperatures, bugs, and many hurricanes? Before you uproot your whole life, take an extended test drive in your potential retirement location. Rent short-term, a few months or a year, and you’ll have a far better feel of what it’s really like to live there.
Ask locals what they enjoy and what their pain points are. For example, many Floridians would tell you they enjoy the beaches, sunny winters, and no state income tax, but they have also been struck hard by skyrocketing property tax rates, exorbitant HOA fees, and costly homeowners’ insurance. Proposals to abolish or restrict property taxes for full-time residents in 2026 are on the table, but it’s uncertain whether the changes would be effective.
2. Compare overall housing costs
By retirement, many have built up substantial equity in their homes. Retiring and moving into a smaller house may open up money in your budget.
But don’t just look at house prices. The whole cost of housing, including property taxes and insurance, is important to consider. If you will need a mortgage, be aware that you’ll likely pay a much higher interest rate if you locked in a low-interest mortgage during the pandemic or in the pre-pandemic period.
If you are considering a move into a condo or a homeowner’s association, don’t forget about the association costs. And consider the financial implications of a possible special assessment.
3. Look at the entire tax picture
Your first instinct if you’re concerned about taxes in retirement may be to migrate to a place with no state income tax. Or perhaps you are considering migrating to a nation with attractive tax benefits for non-residents.
But evaluate the entire tax situation, including income, property, and sales taxes. States without income taxes usually have higher property or sales taxes.
4. Assess your healthcare needs
As you age, your healthcare needs are likely to increase, so make sure you have access to proper medical care. If you may need specialized treatment before you retire, you may want to make sure your new area has a hospital nearby and that providers are available.
Plus, if you retire overseas, you’ll have to get your own health insurance, as Medicare doesn’t cover treatment outside the U.S. Those retiring overseas also need to determine whether to sign up for Medicare Part B. If you do not register in Part B and subsequently re-enter the U.S., you will be subject to a lifetime penalty.
5. Consider transportation access
Transportation availability is a key concern for your budget and your general lifestyle. If you relocate to a place with excellent public transit, you may be able to go carless or at least reduce your car use to one. It can also save you money, improve your physical health, and make your city pedestrian- and bicycle-friendly. But if you’re relocating in retirement to a neighbourhood where you’ll have to drive most places, you may need to pay more for transportation.
Another aspect is how close you are to an airport, especially if you plan on having family and friends visit often or want to travel more after you retire.
6. Don’t forget about the pets
Often, by the time individuals retire, they are empty nesters. But your dogs are family, too, so don’t forget to consider what relocating in retirement may mean for them.
If you are moving into a condo or homeowner’s association, please ensure you are familiar with their pet rules. Many organizations don’t allow certain breeds or weights of pets, and others limit the number of pets you may keep. If you are retiring overseas, it is particularly important to have a plan for your pets, since crossing borders with animals can be tricky.
Pros and cons of moving for retirement
Moving for retirement may seem like a dream, but it’s important to be realistic. Here are a few pros and cons.
Pros
- You may save money by choosing your location wisely. If you relocate to a cheaper cost-of-living and tax area, you may be able to live more comfortably in retirement.
- You may choose a neighborhood that has the features you want. Occasionally you find yourself living in a place that’s not your first choice due to employment obligations. But when you relocate to retire, you may put more emphasis on your lifestyle choices. For instance, many seniors like to go to areas with warm weather and facilities such as golf and tennis.
- There’s little to lose. You never know whether you won’t like the community you retire in. At working age, moving might include a new career or yanking your kids out of school. But if you move in retirement and find out you don’t love your new house, you can try again without as much logistical hassle.
Cons
Less family and friends time. Moving usually means less time with family and friends, unless you’re moving to be closer to loved ones. You may also have to pay more if you want to go home often.
You may not like living where you holiday. Whether you’ve just vacationed there, it might be difficult to know whether your retirement location is a decent place to live.
You may not get the cost reductions you anticipate from downsizing. In certain areas of the country where retirement has long been considered an inexpensive option, such as Florida and Arizona, the influx of out-of-state transplants is pouring in. Housing prices have also skyrocketed in many of these places, so purchasing a smaller home may not save you as much as you think, particularly if you have to take out a mortgage at a higher rate. You may also discover that additional fees, such as insurance or property taxes, are higher.
Should you consider relocating for retirement?
Thinking about moving to make your later years more manageable, especially if you don’t have much saved in your retirement savings. Retirement might also give you the opportunity to live where you wish after you stop working.
But please remember to include the financial and non-financial expenses. Sure, you can save money by moving to a cheaper place, but if you seldom see your loved ones and can’t do the activities you love, is it worth it? Conversely, you could assume a location is affordable because of low taxes and rent, only to realize you’re paying more for other expenses like insurance and transportation.
Whether you can, try renting in the location you want to relocate to after retirement for a few months to see whether it’s what you anticipate. If it’s not what you imagined, you can try another area without the huge expense of a permanent move.