2024 Retirement Trends to Watch That Will Save You $1000/month

Many people aim to retire in the near future. Hopefully, everything will go smoothly. However, retirement plans are always confronted with challenges, whether it is market volatility, healthcare affordability, or inflationary risks. On top of that, you’ll have less financial flexibility without a fixed income.

Do not be alarmed, future retirees. In 2024, you can expect to see some exciting new trends that can help you not only reach your retirement goals but make your wallet fatter by $1000 per month as well.

The Relocation Shuffle

The importance of location in 2024 goes beyond scenic views. Instead, it’s about maximizing your financial resources. So, look for states with low taxes, affordable healthcare, and vibrant retiree communities.

As of 2022, Florida, North Carolina, Michigan, Arizona, and Georgia remain the top states to relocate to for retirees, according to The Motley Fool. Several factors may be driving seniors to look for cheaper places to live, including higher inflation and lower living costs.

As SmartAsset reported recently, Florida is home to the nation’s largest population of people aged 60 and older. Due to its warm climate and lack of state income taxes, the Sunshine State attracts thousands of seniors each year from other states. In 2021, 54% of those moving into the state were over 60, while 46% were 70 and older.

As a result of the net migration of people 60 and older, four Sun Belt states – Arizona, South Carolina, North Carolina, and Tennessee – ranked next. According to census data, Arizona received 25,090 net inflows in 2021 and South Carolina received 19,004. During the same period, North Carolina and Tennessee recorded net migrations of 18,996 and 14,767, respectively.

According to Choice Mutual, Iowa will be the best state to retire in 2024. There are lower crime rates for seniors in Iowa, as well as a good medical care system.

Choice Mutual also found:

• Overall, Florida is the safest state for retirees, followed by Wyoming.
• With good scores for cost and access to quality health care, Rhode Island is the best state for retiree health care.
• Due to its low cost of living and great tax benefits for seniors, Mississippi is the most affordable state for retirees.

By choosing the right location, you can save thousands of dollars on taxes, healthcare, and overall living expenses.

The Getaway Grab: Embrace Adventure (and Lower Costs!)

Rather than Florida retirement communities, 2024 is the year the adventurous retiree enters retirement.

In recent years, studies have shown that older travelers are becoming more adventurous and interested in adventure tourism in order to experience something they find personally fulfilling.

Further, many travel tours cater to senior travelers, with hiking and biking trips suited to a variety of physical abilities across the world.

Imagine yourself exploring vibrant coastal towns in Portugal, trekking through rainforests in Costa Rica, or soaking up Moroccan culture. Not only do these destinations offer breathtaking beauty and unique experiences, but they also offer a significantly lower cost of living than the U.S.

Portugal, for instance, has a 38% lower cost of living than the U.S. Additionally, it costs 44.4% less to rent in Portugal compared to the U.S.

It is, however, recommended that you research the available visa options, healthcare access, and local economy in the country you are considering moving to before retiring aborad. A good place to start is joining a travel group or an online community for retirees who are seeking adventure overseas.

The Downsize Domino: Right-Size Your Living, Right-Size Your Expenses

McMansions are a thing of the past. People of all ages, not just retirees, are seeking smaller, more manageable living spaces, often in walkable neighborhoods, in 2024.

According to the National Association of Home Builders, new single-family homes are currently smaller than existing homes with a median square footage of 2,261 feet and a mean square footage of 2,469 feet.

Obviously, this reduces your monthly housing costs. In addition, you get the opportunity to simplify your life, increase your sense of community, and have more time for things you enjoy. Since the average mortgage payment is $2,317, and the average rent for an apartment is $1,372, that’s an extra grand in your pocket.

Before you commit to buying, however, consider renting. Find a senior living community that fits your lifestyle and consider co-housing options. Also, you need to be ruthless when it comes to downsizing and embrace minimalism.

More Flexibility for 401(k) Savers

As a result of SECURE 2.0, several retirement plan provisions become effective in 2024. Specifically, companies will be able to match contributions to employee retirement plans if they are paying down student loans.

In other words, employee dollars go towards paying down debt, while employer dollars go into retirement plans. This type of match can be tax-deductible for…