Still looking for the best place to retire? This might be perfect for you

When Mary Fitzgibbons and her husband, Pat, were planning their retirement, they knew where they wanted to live.

In the same New Jersey house where they had been since 1967 and raised their four children.

“I don’t think we ever had a big sit-down about it, it was more of an evolution,” Fitzgibbons says. “We have renovated our house over the years, it’s very comfortable for us...and our kids and nine grandchildren are close by.”

Even though they spend a month in Florida each year, Fitzgibbons and her husband don’t imagine they’ll move there permanently. “It’s a nice break from the cold, but there’s very little diversity and very few young people,” Fitzgibbons says. “At home, we’re an hour from New York City, and there are sports and cultural events we enjoy, all within our area — and our family is here.”

Despite the constant drumbeat about the troubled financial lives of retirees and all of the ink spilled on where they should move once they stop working, retirees are apparently both wealthier than ever and not going anywhere, according to a study by United Income, a financial advisory firm for older people.

“Retirees are moving less and less,” says Matt Fellowes, chief executive of United Income and the author of the study. “Even among those who do move, the vast majority of people stay in same town or state.”

Today’s retirees are wealthier compared with past generations, so there is less pressure for them to find the cheapest place to live and, once retired, they have the time and money to enjoy the amenities of their hometown, Fellowes says.

What’s causing this? Longer lives, better health and overall greater wealth allow them to live in more expensive, but culturally vibrant, areas. “As a group, they do not seem to base their retirement decision on cost of living, weather or crime rates,” the report says. “Staying put and quality of life is increasingly important to retirees as their vitality and bank accounts have increased in value over time.”

This report comes at a time when the financial health of current and future retirees is a cause of national concern, thanks in part to the decline of company pensions, soaring health care costs and questions about the health of Social Security. Income inequality is still a problem, the report notes, which remains unchanged from 30 years ago.

But United Income says its research found that financial insecurity among retirees has broadly declined. Over the past 30 years, the percentage of retirees living on the minimum wage or less dropped in half, now accounting for about one out of every eight retirees. In addition, the share of retirees living below the poverty line decreased by more than 10% during that same period.

Embracing the retired population

While no town is perfect, studies (and experience) show that it’s hard to leave a place where you have roots. A recent Pew Research Center report found that older adults tend to feel more satisfied with their communities and more attached to them, in part because they have lived there a long time and have created social connections.

And being around a mix of people can give you a longer, happier life. If you spend time only among people your own age you’ll be less stimulated than if you’re around a diverse group, and that includes friends and family, more research shows.

On a civic level, how can communities embrace these older residents? One consideration is to make cities more age-friendly. “We should think about accessibility and mobility, and one of the biggest issues for an aging population is quality of sound,” Fellowes says. Retirees may also want to work — on their own terms. “There’s a huge opportunity to utilize this population,” Fellowes says. “They’ve got so many skills and diverse backgrounds...keeping this population involved in the community is key.”

Retirees may enjoy greater wealth and vitality, and contribute to their communities, being near loved ones and a built-in support system can be crucial in the later stages of life. “As we live longer, long-term costs can take people’s financial stability,” Fellowes adds. “It can make a financially destructive scenario a financially manageable scenario. And it’s nicer having friends and family around.”

For Mary Fitzgibbons, the best amenity is being close to her family. “It’s a balance, we don’t want to be intrusive,” she says. “But it’s been such a bonus to watch our grandchildren grow up and be a part of their lives.”