by Jean M. La Rue

Created on: January 22, 2008

Finding real world advice on how to maximize our retirement income isn't easy. Too much of that advice begins with the false assumption that we have savings or investments that can boost our retirement income simply through better investment strategies. That sort of advice is useless for millions of retirees living from one social security check to the next and whose only real asset may be a mortgage-free home. The reality is, among older workers ages 55 to 64, three out of four live in households with retirement savings of zero to $56,000, according to a 2002 congressional study. For the vast majority of Americans, it seems, maximizing our retirement income depends entirely upon finding ways to minimize our expenses. More and more retirees are finding that the easiest and most immediate way to minimize their expenses is via relocation to areas with a lower cost of living. The advice for this retirement migration could be, "Go South, old man!"

The Dallas Morning News reported that as many as one million U.S. citizens now live in Mexico; drawn there by a superior standard of living on their limited U.S. dollars. They found affordable housing that is less expensive to maintain, high quality and low cost medical and dental care, huge savings on their prescription drugs, a smaller tax burden, and substantial savings on things like health and casualty insurance. Consider how much further your retirement dollar can go where a dental visit is just $15 and your water, electricity, and telephone bills combined will average $75 per month. How about a haircut for $4 or maid services for $5 per day? It's easy to see Mexico's major attraction for one million U.S. retirees.

Of course, one doesn't need to go so far as moving outside the U.S. to maximize their retirement income by minimizing their expenses. The advice, "Go South, old man!" is still apt. Many retirees are looking to the states in the Southeastern region of the U.S. (Arkansas, Georgia, Alabama, Kentucky, and Tennessee, for example) to find affordable housing, lower living expenses, and moderate taxes. The savings can be dramatic, especially for those moving from states in the Northeast or West Coast where the cost of living may be among the highest in the nation.

A single case in point is the Seattle, Washington couple who sold their modest three-bedroom home for $650,000, purchased a larger, more luxurious home in a gated golf community in Hot Springs, Arkansas for $250,000, and banked the rest of the money. With a cost of living that is 6.3% below the national average, they've happily reduced their monthly living expenses, too. And, the savings continue to add up. State and local taxes take a much smaller bite there, saving them almost one-half the yearly expense of their former Seattle home. With the financial pressures off, they say they are finally enjoying the sort of retirement they always dreamed of - a beautiful home in a nice climate, money in the bank, daily golf, and even a bit of travel.

Maximizing your retirement income through relocation may just be the easiest and best strategy for claiming the retirement lifestyle you've always dreamed of at a price you can afford. Over 200,000 retirees are predicted to move to the Carolinas to capture their dream in 2008 and similar migrations are expected by a dozen other states, as well. There is a wealth of information on the Internet that can help you decide whether retirement relocation is the right choice for you. Perhaps, 2008 will be the year when you, too, will claim the financial security and pleasing retirement lifestyle you've always wanted.

Learn more about this author, Jean M. La Rue.
Click here to send this author comments or questions.