If you’re a long-time Seattleite approaching retirement, you might consider moving away from the city and seeking a quieter, more affordable, and more relaxed living environment.
Of course, the world is your oyster when moving for retirement—so how do you narrow it down? Considering where to retire may help evaluate factors like cost of living, climate, lifestyle, and the general proximity to your family (especially if you’d like to stay close to grandkids). The good news is that our team at TFS Advisors can help you understand the financial impact (or potential benefits) of relocating and retiring to a new location.
In this blog, we’ll explore several attractive retirement destinations for those looking to leave Seattle, highlighting the benefits and considerations of each location.
Why Leave Seattle in Retirement?
We’re sure it’s no surprise to you that Seattle’s living cost is exceptionally high compared to most other areas of the country. Seattle is 45% more expensive to live in than the national average, and it has the 9th highest overall cost of living.1,2
Home values continue to rise, with the current average at around $851,000 (about 3.3% higher year-over-year).3 This can be good news and bad news for those approaching retirement. If you bought your family home years ago and want to downsize into something smaller, you can profit from your current residence. The drawback? Finding something new and affordable to move to may be challenging in today’s competitive and increasingly expensive market. In addition, For gains over $500,000, you may be subject to capital gains taxes from the feds (primary residence) or on the entire gain if it was a rental.
Cost of living and home prices aside, there are other reasons why we’ve seen retirees choose to relocate in retirement. Many people ready to leave their working years behind also desire a lifestyle change—whether that means moving away from the city’s hustle and bustle or seeking a spot with much more sunshine. It’s common for those approaching retirement to move closer to their adult children, siblings, or other family members.
4 Top Retirement Destinations to Consider
As we said before, your options are virtually limitless. But here are four cities (in no particular order) you should consider in your search for the perfect retirement destination.
Bend, Oregon
Bend, Oregon, is a hidden gem of a retirement destination in the Pacific Northwest, with low humidity, clear skies, and a picturesque, four-season climate. In the Oregon High Desert region, Bend receives only about 12 inches of precipitation annually and upwards of 33.8 inches of snowfall.4
While nowhere near Seattle’s high cost of living, Bend still exceeds the national average by about 12.2%.5 Home costs are high as well, with the average sitting at around $736,601.6
Bend boasts an excellent small-town feel, though as tourism grows, it’s becoming an increasingly popular destination. If you love getting outdoors, Bend is home to incredible hiking, kayaking, snowboarding, skiing, and other recreational activities.
Coeur d’Alene, Idaho
In Northern Idaho, Coeur d’Alene is a suburban area with a great mix of city living and natural surroundings. The city is on Lake Coeur d’Alene and offers residents year-round access to incredible forests, mountains, lake views, and recreational sports.
Coeur d’Alene is certainly worth considering if you’re looking for a place with Midwestern charm and a slower pace of living. It is a bit pricier than the rest of Idaho, boasting a 15.9% higher cost of living than the national average, with an average home cost of $508,200.7. With a less competitive housing market than Seattle, however, you may be able to get more bang for your buck here (while still enjoying an incredibly scenic backdrop to retirement).
Flagstaff, Arizona
Did you think Arizona was all deserts and cacti? Flagstaff offers an entirely different experience, with proximity to incredible mountains, dense forests, the Grand Canyon, several other National Parks and monuments, and even snow during winter. With such a diverse ecology, the area is perfect for enjoying various outdoor activities all year round.
Because Flagstaff is located at a higher altitude than other cities in Arizona, it doesn’t experience the same intense, year-long heat as major cities like Phoenix.
Flagstaff’s cost of living is 16.2% higher than the average (though still much lower than Seattle’s), and the average home cost is $565,400.8
Financial Considerations for Relocating
In each destination above, we provided the average cost of living and home prices—these are two critical indicators of how far your budget will go in another city. The good news is that Seattle’s cost of living is so high most areas of the county will be less expensive to navigate.
In addition to these financial considerations, consider a few other factors, like tax incentives or breaks.
These may include:
- Real estate tax
- Social Security tax
- Income tax
- Costs for car insurance
- Home insurance
- Car license fees
If you believe you’ll need specialized healthcare or long-term care in the future (which, unfortunately, many retirees eventually will), check out the local medical facilities and assisted living centers. Even if you never need to use them, it’s good to know what’s around if your health status changes.
Ready to Plan Your Move?
Once you’ve decided on your destination, the next order of business is incorporating your relocation expenses into your retirement plan. Our team at TFS Advisors can help you with the financial planning considerations involved in preparing for and moving into retirement.
With careful planning and expert guidance, you can find your dream home and enjoy a fulfilling retirement in a new city. To learn more about how we can help, schedule time to talk with us today.
Sources:
1https://www.payscale.com/cost-of-living-calculator/Washington-Seattle
2https://www.axios.com/local/seattle/2023/11/16/cost-of-living-seattle-washington-expensive
3https://www.zillow.com/home-values/16037/seattle-wa/
4https://movingtobend.com/the-bend-lifestyle/weather/
5https://www.salary.com/research/cost-of-living/bend-or
6https://www.zillow.com/home-values/50962/bend-or/
7https://www.bestplaces.net/cost_of_living/city/idaho/coeur_d’alene
8https://www.bestplaces.net/cost_of_living/city/arizona/flagstaff
