Jim Yih: Pondering your ideal retirement home

A host of factors go into this very important life decision

Where do you want to live when you retire?

Do you see yourself staying in the home you’re in now? This can be the best choice for those who have strong memories attached to their home, have lived there for many years, or have spent a lot of sweat equity getting it exactly as they want it.

Others view retirement as the opportunity to downsize, renovate or relocate. Whatever the case, it is important to consider your options as part of your retirement plan.

IS YOUR HOME RETIREMENT- READY?

Do you need to renovate or make changes to your home in preparation for retirement?

Some people prefer to do renovations prior to retirement because dealing with the cost is easier while working and earning a steady paycheque.

Others prefer to save those big projects for when they’ve finished working, when they’ll have more time.

HEALTH CARE

Health care is one of the biggest issues on the minds of retirees. Snowbirds count the days they are away and hurry back to Canada to avoid being caught without health-care coverage.

As we age, it becomes more important to choose where we live based on access to health care, as well as the availability of hospitals, medical professionals, and other health services.

Also consider whether your home can be adapted as your personal health situation changes.

Changes in health and mobility may make your current home less than ideal and potentially make moving a preferred option.

FINANCES

Different provinces have different tax rules.

Where you live on December 31 of each year determines the provincial/territorial tax rate you will pay.

In addition to federally regulated programs such as the Canada Pension Plan and Old Age Security, each province can have separate programs.

For example, here in Alberta, we have the Alberta seniors benefit to help lower income retirees over the age of 65.

Factors like these may play into your decision of where to settle down.

ESTATE PLANNING

When it comes to estate planning, it’s important to have three legal documents — a will; enduring power of attorney; and a personal directive — that form the foundation of your estate plan.

Again, every province has its own set of rules governing these documents and other aspects of estate planning.

Your primary domicile also determines where probate will begin.

SOCIAL SUPPORT

The location of your home in retirement can be instrumental in the degree of support you may be able to receive from relatives and friends in times of crisis.

I’ve seen some people successfully move closer to kids and grandkids in retirement. I’ve also seen some people move closer to grandkids only to find being with grandkids becomes work and that they miss their friends.

Consider the implications of losing one’s ability to drive a vehicle due to failing health. Would your present location work in that situation, or would you be isolated?

Being surrounded by social support, whether friends or family, is important.

LEISURE AND HOBBIES

Where you live also determines what you may be able to do in retirement as recreation.

I often joke that if you want to sail regularly, Edmonton may not be your best choice.

Many people plan to move to warmer climates where they can enjoy their favourite hobbies for more of the year.

WORK

Nowadays, many people are planning and wanting to work in their retirement.

In that case, your retirement location needs to be in sync with the type of work you do or the work opportunities you wish to pursue.

MY FIVE CENTS

When people think about planning for retirement, they often think primarily about the money and whether they have enough saved.

As important as money is, it is also important to think about housing.

Have you thought about where you are going to live in retirement? Now’s the time to start.