Following the Grandkids Is the Move Nobody Regrets Out Loud. The Retirees Who Stayed Put Got the Better Deal
Moving to be near the grandkids sounds simple until you price out what the second city actually costs and what happens when those grandkids move again. The numbers behind both choices reveal a gap most retirees never calculate before they…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Many retirees with a paid-off house weigh whether to stay put or move to cities like Charlotte, Austin, or Charleston, where their adult children and grandchildren have settled. Following them is common, but it comes with different costs than staying put. That’s why a 66-year-old couple choosing between staying in a paid-off home and following the grandkids to a fast-growing city should run the numbers so they can see what each version of retirement actually costs.
Pricing the Stay-Put Baseline
The Bureau of Labor Statistics places average household spending at $78,535 a year. Rounded up to $80,000, that gives a workable budget for a couple with no mortgage. Of course, don’t forget costs like Medicare Part B, which alone runs $202.90 a month per person, or $4,869.60 a year for two. That fits within a healthcare line that also covers Medigap, Part D, and out-of-pocket costs.
| Annual line item | Stay put | Follow the kids |
|---|---|---|
| Property tax, insurance, maintenance | $14,000 | $20,000 |
| Healthcare | $12,000 | $12,000 |
| Food | $12,000 | $12,000 |
| Utilities | $5,000 | $5,000 |
| Transportation | $8,000 | $8,000 |
| Personal, travel, and gifts | $14,000 | $16,000 |
| Reserves (roof, car, emergencies) | $10,000 | $10,000 |
| Income tax on withdrawals | $5,000 | $5,000 |
| Total | $80,000 | $88,000 |
The average aged couple collecting Social Security will receive $3,355 a month after the 3.6% 2027 COLA, or $40,260 a year. The portfolio must cover the rest, and at a 4% withdrawal rate over a 30-year horizon, the couple needs $993,500, or roughly $1 million. If the higher earner waits to claim until 70, the couple’s income floor rises, and the survivor benefit increases, which reduces that number.
What Following Adds to the Bill
In the following case, housing costs rise because the new home is valued at today’s market price, and insurance costs more in coastal Southeast cities. You also budget for trips back to see the friends and siblings you left behind. Buyers coming now also pay for a steep run-up: FHFA data shows prices up 61.64% over five years in Charleston, 59.65% in Wilmington and 63.76% in Hilton Head.
With an $88,000 budget, the portfolio target rises to $1,193,500. That is about $200,000 more, and it still doesn’t include selling costs or movers. At 4%, every $1,000 of new recurring spending requires $25,000 more in savings. The sale itself can also raise Medicare costs. If your home gain tops the home-sale exclusion and pushes joint income above $218,000, each spouse’s Part B premium rises to $284.10 a month for that year.
Why One Move Often Turns Into Two
Adult children in their 30s and 40s change jobs and change cities. IRS migration data shows how much families move back and forth between states: 28,263 returns moved from Florida to Georgia while 23,475 went the other way, and 44,417 moved from California to Texas against 24,970 heading back.
The property-tax protections retirees build up usually work only inside one state. In California, a homeowner over 55 can carry the home’s taxable value to a replacement home bought within two years of selling the original, up to three times (Cal. Rev. & Tax. Code § 69.6(a)).
In Texas, school taxes on a homestead owned by someone 65 years of age or older are capped (Tex. Tax Code § 11.26(a)), and a certificate under § 11.26(h) lets that cap follow you to a new Texas homestead. Once you cross a state line, both protections are gone. A second move to follow the kids means paying a full market-value assessment again, along with a second round of transaction costs.
What Following Without Regret Requires
Staying put works on about $1 million if you withdraw 4% each year, with a paid-off house in reserve as a backstop for long-term care. Following the kids takes closer to $1.2 million plus the cost of moving. The portfolio, a mix of index funds and a Treasury ladder, must keep up with inflation for older households, which the BLS research index puts at 3.6% over the past year.
That 4% figure comes from research done decades ago, and we walk through why it wobbles today, along with an income-first alternative, in a free guide. Social Security funding also carries uncertainty. Trustees project the combined Social Security trust funds will pay only 83% of scheduled benefits after 2034.
If the numbers are tight, renting near the grandkids for two or three years before buying is a lower-cost option that keeps the original home and its tax basis in place, and a move within the current state preserves in-state tax protections. That approach can turn a move retirees may have to make twice into one move.
Contact [email protected] for any questions or corrections.
David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.
