Social Security

[disneysteve]

I think a lot of people retire to low(er) COL areas.

True, but how many do it because they want to and how many do it because they have to? There's a big difference between the two.

In this area, many seniors have no choice but to move as they simply can't afford to stay where they are. Even with a paid off home, SS, maybe a pension and a decent sized nest egg, the property taxes drive them out of the state.

[swanson719]

It all depends on what you do during your working age. It's not like property taxes or other fixed things go up at an unpredictable rate. They may get raised a percent or two every few years, but that's part of retirement planning. If someone wants to live in a high COL area, they need to save more during their career. So if you know property taxes are $7,000 a year, then you need to add at least $175,000 to the amount you need to retire, planning for a 25 year retirement. If they are happy moving to a lower COL area, then they can live higher on the hog throughout life and not save that $175,000+.

There was a thread a few weeks ago about this generation needing an average of $3 Million to retire comfortably, but I don't imagine 3 million will be enough if you live in the strip from Boston to D.C. or other major urban areas. A million might be enough in Wyoming, but that might only last a few years in NYC 40 years from now.