Where do you plan to live when you retire?
50-somethings and near retirees used to dream of moving to Arizona, California or Florida when they retired; planning to give up the responsibilities of mowing lawns and shoveling snow for a more leisurely life of regular golf-games and walks on the beach; but recent studies indicate that this trend to move to traditional “retirement states” is changing.
According to a recent article in CBS MoneyWatch, retirees are reconsidering where they want to spend their golden years. “Among U.S. workers age 55 and older, almost two-thirds — 62 percent — think that when they retire they will continue to live in their current state of residence. . . That’s up 20 percent from a similar survey taken just two years ago.”
While some of this change has to do with different states’ income tax and estate tax laws, the CBS article points out that most of it has to do with a shifting attitude toward retirement. “More and more Americans [are moving] away from the traditional definition of ‘all play and no work’ during their retirement years to start second careers or continuing to work in some manner. In fact, 50 percent of [survey respondents] report that they work part-time or are starting new businesses or careers.”
What this means is that more and more retirees are looking to make only small changes as they move from full-time work to part-time retirement. Many are staying in their city of residence and choosing to simply give up a larger family home in lieu of a smaller two-bedroom home. Some retirees are moving away from their lifetime city of business and residence to move closer to family and work remotely as contractors.
Wherever you choose to spend your retirement, you’ll want to know your state’s rules and regulations regarding gift and income taxes, estate planning, powers of attorney, health care, and government resources. Contact our office—or your own local elder law attorney—to ensure that you’re familiar with local laws, and taking advantage of every opportunity available to senior residents.