Have you ever considered the idea that where you live might be holding your retirement savings back?
That’s the idea behind a recent Forbes article
, which presents the first of two “Retirement Silver Bullets” to boost your retirement readiness.
If you live in a city with a relatively high cost of living, you could do your finances some good by moving to an area with a lower cost of living, the article says. The author provides the example of Alexandria, Va., which has a 55.5 percent higher cost of living than the U.S. average.
In contrast, Knoxville, Tenn., has a 19.3 percent lower cost of living than the national average.
When factoring in the cost of a home, the cost of living and how much of the proceeds a couple would be able to save by selling the home in the more expensive city, they would be able to meet or exceed their retirement income need.
This strategy doesn’t make sense for everyone, though.
“If you find yourself in a retirement planning pickle, I’m not suggesting you read this and immediately put a “for sale” sign in your yard. Cost of living should not be confused with quality of living. If your geography and proximity to friends and family is where you derive the most joy from life, I’m not suggesting that you have a financial duty to uproot. But, if you’ve reached a retirement plan dead-end and find yourself without options and a yearning for a refreshing change of pace, there is no question that transplanting your financial life to a lower cost of living area can transform a bleak retirement into one that is quite comfortable.”