Big drop in retirees relocating
Pandemic, economic concerns keeping retirees close to pre-retirement home, but one state still leads in relocations.
Although the economic fallout from the pandemic has forced many Americans to retire sooner than planned, many are staying close to home.
“All things being equal, this means we’d expect to see a spike in the number of people who moved for retirement, but that didn’t happen,” according to a report by Hire a Helper. “Quite to the contrary, the number of retirees who moved in 2021 dropped to 226,000 — roughly 43 percent fewer than in the year previous. It’s also the lowest number of American retirees in the last five years.”
Researchers found several trends:
- Nearly half of Americans who moved after retiring went to a different state, compared to just 16 percent of all people moving.
- Retirees younger than 65 were even more likely to leave their state (64 percent).
- Early retirees accounted for 40 percent of those moving for retirement in 2021.
- Retirees of color make up just 12 percent of those moving for retirement, while 88 percent of retirement movers are white.
Why are fewer retirees moving?
COVID. Older Americans were hardest hit by the virus, with rates of infection, hospitalization and death highest for people over age 65. Many would-be retirees possibly had COVID, had to care for someone who had it or otherwise were affected by it. This may have undermined their willingness and ability to relocate.
Housing market. Prices continue to climb at a record pace, especially in the desirable neighborhoods retirees tend to seek out. Although most retirees downsize, they may be getting priced out of places where they would like to retire.
Lack of retirement savings. Many Americans had to tap into retirement savings to sustain themselves or support their families even before the pandemic. This situation arguably has gotten worse in recent years, with one recent study finding that 14 million Americans stopped contributing to their pension plans.
For those retiring out of state, the leading destination is Tennessee, which has the second-lowest tax burden in the nation. Other popular locations include Florida, Pennsylvania, North Carolina, South Carolina, Kansas, Arkansas, Georgia, Maine and Louisiana.
The most popular city is Pittsburgh, once ranked as the best place to retire by Bankrate because of its low cost of living, excellent health-care system and a significant number of inhabitants aged 65 or older. Pittsburgh was the top city destination of choice for 7 percent of all retirees in 2021. Delaware and Maryland had the highest percentage of retirees choosing to move out, at 22 percent.
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