Many economic coordinators will tell you the correct way to save for retirement is to begin young and consistently put aside a part of your salary into a retirement savings vehicle. And some people definitely do this. But when you are like many of us, you did not save as much as you can, and now you are searching for some last minute retirement options.
On one hand, you can save more. However that is not always a plausible retirement options if you are currently having trouble paying your residing expenses. More immediate objectives, including paying for your mortgage and health care bills, or helping out your kids and grandchildren, may be stretching your budget. Around 58% of People in America age 55 and older have less than $100,000 in their retirement savings, according to the Employee Benefit Research Institute's latest Retirement Confidence Survey . Only 19% have $250,000 or even more of retirement savings.
That means you may need to retire early or consider relocating to a less costly area.
Relocating? To many, that may appear drastic. You love where you reside. You have built a life there. You're near to your children and grandkids. But depending on where you reside today, and exactly where you move to, it might significantly influence your quality lifestyle and permit to retire early.
This kind of a move may even include warm weather and palm trees, but most importantly, relocating from a high-cost region to one with a significantly lower cost of living. Doing so could make the main difference between an early retirement age and working for a number of more years - particularly if you have significant equity in your home that can bootstrap your move. Let's say you've $50,000 a year to live on in retirement, and also you currently live in Oakland, California. What will occur in the event you relocate to Bradenton, Florida? In accordance to Bankrate.com , you are able to take a 33.21% decrease in your retirement revenue and nonetheless maintain your quality of life. Just evaluate a few of the costs between the 2 locations.
Cost of living comparison
|Oakland, CA||Bradenton, FL|
In fact, there were just a few things that cost more in Bradenton than in Oakland, which includes power, which was $120.69 and $167.03, respectively. (Guess it is all the air conditioning.)
The key, if you are considering this strategy, is to discover a community with a strong economy as well as possibilities for an enjoyable way of life. The latter will depend on what you enjoy, but may consist of warm climate, a chance to access cultural events, or other retired people with whom you may socialize. So maybe there is an area which you will enjoy with reduced housing and residing costs and will permit you to retire early.