Should You Move to a Smaller City After Retirement?
Our careers lead us to put roots down in one place, as we move up the professional ladder. However, as we approach retirement, there’s nothing to stop us moving to a new place more suited to our new lifestyle. Many retired people may wish to relocate away from fast-paced metropolitan areas. This can have considerable personal and financial implications. Therefore, it is important to carefully weigh the pros and cons before you considering relocating after retirement.
Mar 2023
6 mins read
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3 advantages of relocating after retirement
Your cost of living reduces considerably
When you move away from a metropolitan area, you can substantially lower your cost of living. The cost of groceries, utilities, household goods etc. tends to be much lower. In case you decide to relocate from a humid region to an area with a colder climate, for instance, a hill-station like Shimla or Darjeeling, you could save on electricity bills. In case your post-retirement plan involves moving from a bigger house to a smaller one, you could save a fortune on maintenance and upkeep costs. This reduction in expenses means that you can live on a much lower budget while maintaining a good lifestyle. Here are some promising smaller towns and cities to consider:
| Ease of Living* Index 2020 | ||
| Rank | Popn>Million | Popn<Million |
| 1 | Bengaluru | Shimla |
| 2 | Pune | Bhubaneshwar |
| 3 | Ahmedabad | Silvassa |
| 4 | Chennai | Kakinada |
| 5 | Surat | Salem |
| 6 | Navi Mumbai | Vellore |
| 7 | Coimbatore | Gandhinagar |
| 8 | Vadodara | Gurugram |
| 9 | Indore | Davangere |
| 10 | Greater Mumbai | Tiruchirapalli |
It could help you expand your horizons
After having spent most of your life in one place, relocating can help you get a new perspective and a change of scenery. You could move to a quieter place with more scenic beauty now that you no longer have to live near a commercial centre. Additionally, if you move to a place which has a large retiree community, you could expand your social circle. If you choose a place that comes with a lower cost of living, you might have scope to take up new hobbies and develop new skills.
It could open up a new income avenue through renting
As retirees, when you decide to move to a different city, you might either choose to sell your current house or rent it out. This could open up a new avenue of income to offset unforeseen expenses. If you plan well, you could build a substantial corpus to help you take vacations, pursue hobbies and much more.
3 downsides to relocating after retirement
It might affect your medical care
When you reach retirement, you might have some health concerns and want to be close to your family doctor. You may also be enrolled in health programmes of hospitals near your current residence. However, moving cities will compel you to change doctors and hospitals and probably force you to start over with a new medical set-up. Smaller towns may not have the same quality of medical facilities as larger cities. While it is true that technology has brought the virtual world a lot closer, it may not always be a substitute for face-to-face interactions. If you are relocating to be closer to nature, you might also end up further away from top medical care, and you must be conscious of this trade-off.
It may be a downgrade in some ways
Moving to small towns or rural areas may come with a downgrade in transport, infrastructure and amenities. Relocating away from your family could also affect your quality of life. Another challenge is that if you feel like you need more money, it could be difficult to pursue new avenues of income in a remote location. Thus, it is important to consider your personal situation from all angles before making a move.
The reality of relocation might be very different
We often tend to romanticise the concept of relocating to a remote, serene place. While the laid-back rural lifestyle is a definite attraction, enjoying the slow pace of retired life in a faraway place may not be everyone’s cup of tea. If you enjoy fast-paced urban living, it may be a big change to adjust to a new place. This is especially true if you happen to be someone with an active social life or a large circle of connections.
Relocation after retirement is a big decision with major financial and personal consequences. Plan your finances carefully and consider all aspects before you take the plunge.
Disclaimer: Mutual fund investments are subject to market risks, read all scheme-related documents carefully.
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PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
Toll Free Number: 1800 266 7446
Email: care@pgimindia.co.in
This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindia.com/mutual-funds/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
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