3 OPTIONS ON WHERE TO LIVE WHEN YOU RETIRE

Retirement planning involves things apart from seeing to it that you have saved enough. As you approach retirement age, you will have to consider where you are going to live once you are retired and what you will do with all the spare time you will suddenly enjoy. Where you live will depend on your personal circumstances and preferences, but there are also practical things to consider, such as security and access to health care, which shouldn't be underestimated.

1. STAY WHERE YOU ARE

This may be the easiest and most practical option, but for some this would be too boring. If you are in a family home and your children have “flown the coop”, the house will probably be too big for you and may prove expensive to maintain, in which case you could downscale to a smaller dwelling in the same area. This would free up some capital that could boost your retirement savings.

PROS: You are part of an existing community of relatives and friends and have an established network of service providers, such as your family doctor. You are familiar with your surroundings.

CONS: Same old, same old; the family home may be too large; maintenance, insurance and rates expenses may be unnecessarily high; there may be security issues; no automatic access to health-care facilities or to frail care once you reach a certain age.

2. ESCAPE TO THE COUNTRY

You may be weary of the busy life in the city and yearn for a tranquil, edifying natural environment in which to spend your autumn years. This may be in an inland town in a scenic part of our country or a quiet spot on the coast – many Johannesburg retirees end up in a seaside town. You are also likely to free up some capital, as accommodation is likely to be cheaper, although groceries may be more expensive in a small town.

PROS: A change is as good as a holiday – you can start this new chapter of your life in a place that invigorates your soul and may provide new opportunities, such as working for a local charity or learning a new craft.

CONS: Your family members and close friends may be much further away (so you may see them less frequently) and you will need to establish a new network of friends and service providers. Living in a small town, there may be security issues, and there may not be a good hospital in the vicinity.

3. MOVE TO A RETIREMENT VILLAGE

Retirement villages have become an extremely popular option for South African retirees who can afford the lifestyle they offer.

Units may be bought under sectional-title ownership or the village may operate according to a life rights system, whereby you forego ownership for the right to live in a unit until your death, upon which your estate receives a portion of the purchase price.

PROS: Retirement villages offer a secure, stress-free environment where all property maintenance is taken care of. Many offer good health-care services, a frailcare facility for when you get too old to look after yourself, as well as numerous activities for residents, such as bridge, bowls, outings and social events.

CONS: The monthly levies may be high. Residents may feel cut off from the world outside. Many old people enjoy having younger people and children around them, which they would miss in a retirement village. The village rules may be rigid, such as prohibiting pets.