My wife and I want to retire to Colorado to be closer to our daughter — how can we be sure a big move won't cast a chill over our golden years?

Although they have strong reasons to move, they’re understandably nervous. Around 86% of Americans who moved in 2023 had some regrets, according to a survey by Home Bay and Allied Van Lines [1]. And 20% of movers did so to be closer to family and friends.

Let’s not forget the financial costs associated with moving. Here’s what the couple might want to consider before making a decision.

The cost of moving

Devon and Lainie have some retirement savings, and are looking forward to modest pensions. However, their house is paid off, so with Social Security (and careful budgeting) they expect to live comfortably in their golden years.

But when it comes to affordability, not all states are equal. Colorado is ranked 43rd in terms of cost of living and housing affordability, while Arizona is ranked 38th, according to U.S. News & World Report [2]. Overall living costs are similar in both states, but housing is less affordable in Colorado.

If the couple does move — and if they don’t want to dip into their retirement savings — they’ll likely need to use the proceeds from selling their Arizona home to buy a new one in Colorado. And that means they may have to downsize.

Before moving, it’s worth doing some calculations to figure out if your retirement funds will stretch further in your new home or if you’ll have to cut back. For example, if you have health care needs or anticipate you will, those costs should factor into your decision-making process. Taxes are another consideration. If you’re moving from a high-tax state to a lower-tax state, that could significantly impact your retirement budget — and vice versa. Consider income tax, property tax and sales tax.

Devon and Lainie may want to sit down with a financial advisor or a tax expert to crunch the numbers.

Finally, they’ll also need to consider the cost of a move, from transaction costs related to selling their existing home and buying a new one, to the cost of professional movers. The cost of a long-distance move (50 to 400 miles) can range from $2,200 to $10,500, while a cross-country move (400-plus miles) can run anywhere from $4,400 to $17,000, according to Allied Van Lines [3].

Should you 'test-drive' a move?

Similar to test-driving a car before you buy it, some people may want to test-drive a new location before they move there. For example, Devon and Lainie could find a short-term rental for the winter to see how they’d adjust to the colder weather.

However, absorbing the rental cost without denting their savings might mean living on a tighter budget, though they could also consider renting out their Arizona home while they’re in Colorado to help cover their costs.

While there, they could lean on their daughter and Lainie’s best friend for suggestions to help them “live like a local,” such as where to find the best deals on food or navigating the public parks system.

In their case, it might be most important to embrace winter activities — such as attending winter carnivals or learning how to ski — to see how well they can adjust to a much different climate.

On the flip side, they may want to consider what they’d be leaving behind if they move. It may be hard to make new friends in a new city, and you may struggle with establishing a fresh routine. That could include things like finding a new yoga teacher or building rapport with a different family doctor.