3 Financial Factors Retirees Often Overlook

As you approach retirement, there are many variables to consider and decisions to make. This flood of information can be overwhelming and can lead retirees to overlook some crucial factors or take missteps along the path to retirement.

Learn more about three examples of common financial factors that retirees often overlook, especially when it comes to deciding where they will live in retirement.

Incurring unnecessary expenses by staying in their house too long

It can be a very emotional and difficult decision to leave a house that you’ve been in for a long time. Retirees often put off that decision and use up their resources, but once they finally move, they realize they are just as happy in their new place.

Staying in your house too long can lead to potential financial losses such as the following:

  • Paying for more space than you need. If you had children who have since grown up and left the house, you most likely have rooms in the house that are mostly unused. Larger houses are typically higher in value and generate higher property taxes, utility bills, and other financial losses.
  • Having to hire people to maintain the house. Homeownership includes a lot of maintenance, such as gardening, raking, cleaning the gutters, and more. As you get older, you may no longer be able to take care of these tasks on your own – or you may simply want to use your time in better ways.

It may be wiser to move to a new house that supports a more enjoyable retirement life. You have earned this time to enjoy, so consider making new memories in a new place.

Moving to the wrong location because they didn’t think ahead

Many retirees seeking peace, serenity, or warm weather end up somewhere remote or away from friends and family for part or all of the year. However, once they make the move, they start missing some crucial elements in their lives: having a community, proximity to dining options, theater, art, or other activities.

You are not tied to retirement communities or popular retirement destinations. Instead, choose your destination carefully based on your personal preferences and how you plan to spend your retirement.

If you end up unhappy after your move, you will incur additional expenses by moving back or overspending to make up for everything you miss. Instead, consider vacationing a few times a year to achieve the same goals without fully moving away from the people, places, and things you enjoy.

Buying a vacation home that ends up going unused

Many retirees romanticize the idea of buying a vacation home to enjoy with their children and grandchildren before passing the legacy down. They may want to start a family tradition to make the most of the coming years and ensure they will be remembered by the younger generations.

What often ends up happening instead is that these family getaways take place for a year or two, but ultimately the family does not get as much use out of the home as they expected. Starting a new family tradition is often more challenging than retirees anticipate, especially as family members get busier or move away.

The best way to gauge how practical that purchase might be is to have an honest conversation with your family. Ask your loved ones how often they realistically see themselves using a vacation home and see if there might be a better way to spend family time.

For example, planning a yearly family vacation can achieve the same goal of creating memories and spending time together instead of buying a second home. Alternatively, if your family ends up spread out over various locations, taking more frequent trips to see them may make more sense for your situation.

Taking a step back to look at the big picture can help you navigate the finer details of making decisions about your retirement. Your Williams Financial team has experience supporting our clients’ financial well-being so you can get the most out of this chapter of your life.

Learn more about our services and how we strive to wrap our whole team around you to potentially prevent financial missteps and support informed decisions about your retirement.