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Moving to a new state during retirement can be a way to stretch your dollars, spend more time with family, or live somewhere that wasn’t practical during your working years. These are all things to look forward to, and they’ll be more enjoyable if you’re prepared for all the changes that moving entails. Creating a personalized checklist of tasks to protect your health care, estate plan, income, and social life can help streamline the transition.
Here are some ideas to get you started.
Find new health care providers
Avoiding gaps in your health care coverage should be a top priority when moving to a new state. If you only have original Medicare (Part A for hospital insurance and Part B for medical insurance), you’ll have the same coverage anywhere in the United States, but you’ll still need to find new providers who accept it (try Medicare’s Care Compare tool).
If you have a Medicare Advantage plan, a Medigap supplemental plan, or a Part D prescription drug plan, you may need to find new coverage.
“If on a private plan or employer-sponsored plan (for retirees), check with the insurer about out-of-network coverage, changes in premiums, and availability of network providers in the new state,” said Philip D. Rogero, a financial professional with Rogero Wealth Planning in St. Augustine, Florida.
If you need to change plans, know that moving qualifies you for a special enrollment period. If you miss that window, you may have to wait until the next open enrollment period to make changes, and you might be left without coverage in the interim, Rogero warned.
To improve the care you get from your new providers, you may want to request your medical, dental, and vision records from your existing providers at least 30 days before your move. Expect to fill out an authorization form for each provider, and possibly pay an administrative fee.
Because it can be challenging to get an appointment as a new patient, try to set up initial visits with potential primary care providers and specialists in your new location before you move. Also, make sure that you have enough prescription medication to get you through your move. Then transfer your prescriptions to a pharmacy near your new home, and update your address for any mail-order prescriptions.
Once you know what coverage you’ll have in your new state, review your coverage for urgent care and emergency department visits. If costs are significantly lower for in-network providers, make lists of those providers. Keep copies on your phone and in your glove compartment for easy access.
If you have pets, don’t forget about finding a new veterinarian and locating 24/7 vet hospitals. Ask your existing vet for copies of your pets’ medical records before you move, too.
Revisit your investment strategy
“Understand the taxation of your retirement income and review your income sources,” Rogero said. “Understand how the new state treats those sources of income.”
If your new state has a higher tax rate, you may want to explore tax-advantaged investments. Income from qualified dividends and long-term capital gains is typically taxed at a lower rate than ordinary income. If your new state has a lower tax rate, certain investments, such as state municipal bond funds, may no longer make sense in your portfolio, and strategies such as Roth conversions may become more attractive.
With all the changes moving to a new state brings, you might want help reevaluating your finances. A MassMutual financial professional can offer guidance on your retirement portfolio and other decisions. And if you need one in your new state, you can use this tool to find one.
Connect with a MassMutual financial professional
Update estate planning documents
Whether you realize it or not, your existing estate plan is likely optimized for the state you currently live in. Each state has its own laws governing wills, probate, trusts, powers of attorney, and property rights. Further, some states impose death taxes or inheritance taxes, while others do not.
All of this means that it’s important to work with an estate planning attorney in your new state to update your documents and strategies so your plan still accomplishes your goals.
Subjects to cover with your attorney, Rogero suggested, should include:
● Wills: State-specific probate laws could affect how your will is interpreted and executed.
● Property titles: You may want to re-title real estate or other property to make sure that your estate is structured tax efficiently if your new state has estate or inheritance taxes.
● Medical powers of attorney: Also called a health care proxy, your existing documents may not comply with your new state’s requirements. Also, for practical reasons (like proximity), you may need to change your designated agent — the person you’ve appointed to make decisions on your behalf.
● Beneficiary designations: In some states, rules regarding community property or marital property can affect beneficiary designations on financial accounts.
While having to update your plan when you’re already busy with other moving tasks isn’t ideal, there’s a good chance you were overdue for a review anyway. It’s a good idea to review your estate plan every couple of years or whenever there’s a major change in your life. (Related: Estate planning tools)
It’s also wise to back up important documents before you move and to photograph your possessions, especially valuables. If anything gets lost or damaged in the move, you’ll have an extra copy or evidence for an insurance claim.
Update your address
Unfortunately, moving means updating your address with every entity you do business with. In some cases, this process will be as simple as logging in to your online account, navigating to your customer profile, and typing in your new address. In other cases, you might have to fill out a specific form or provide a photo ID.
Make a list or spreadsheet to keep track of who you’ve updated and when. Where applicable, note confirmation numbers or other important details. A password manager can make the process less tedious by auto-filling many online address forms for you.
Here are some of the entities you may need to notify:
● United State Postal Service (if you want your mail forwarded).
● Social Security Administration (this change will also update your Medicare address).
● Internal Revenue Service (submit Form 8822 by mail).
● Banks, credit unions, investment firms, and insurance providers.
● Pension and other benefit administrators.
● Creditors.
● Subscription service providers.
● Alumni associations and professional organizations.
● Attorneys, financial professionals, and tax preparers.
If you have a safe deposit box at a local bank, make sure to remove the contents before you move, then close your account.
Establish domicile
There are several steps you’ll need to take to establish yourself as a permanent resident of your new state. It’s important to establish domicile to avoid being taxed by more than one state and to gain the legal protections and benefits of your new state.
Updating your legal documents and obtaining local medical care can help show your intent to make your new state your permanent home. So can the following:
● Getting a new driver’s license or state ID: Check your new state’s laws on how soon after moving you need to do this.
● Registering to vote in your new state: You may be able to register at the same time you update your license or ID.
● Registering your vehicle: Check state laws to avoid penalties for late registration and see if you need an emissions test.
● Updating your auto insurance: Coverage requirements can vary by state, and your existing insurer may not do business in your new state. Your premiums will likely change even if you only have to update your address.
Look for activities and find your people
Senior centers are for old people, and despite what your state ID says, you’re pretty sure you’re only 35. Still, your local senior center might be a place where you can meet people who, like you, are actively seeking new friendships with people who aren’t working during the day or helping kids with homework at night. You might find friends through the center’s fitness classes, holiday events, classes, excursions, and other activities. (Related: 10 ways to find meaning and purpose in retirement)
Where else might you make new friends? Possibilities include religious institutions, volunteer groups, book clubs, pickleball or bowling leagues, community college classes, neighborhood events, and local businesses. Even if you’re moving with your spouse or moving closer to family, it’s important to expand your social circle. New connections can be invigorating. They can also help you navigate life in your new location and avoid feeling overly dependent on your loved ones.
Discover more from MassMutual…
7 ways to increase your retirement income — without saving more
Retiring abroad? Your plan and checklist
How to guard against problems for your heirs
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