I'm 57 and thinking about where to live when I retire. How do I choose the right location — and make sure I can retire there comfortably without running out of money?

Narrowing down your choices for a move

If you look online, you'll see plenty of roundups of the best states in which to retire, like ours. But, you also need to look beyond the rankings and decide what you want the most out of a move.

If your primary goal is to lower your living costs, then you may want to retire in a state with no income tax (Florida fits that bill) or in a state where living expenses are generally cheap. But, you may have other goals in relocating.

Climate could be one of them. You may no longer have the patience for harsh winters or the energy to clear snow out of your driveway. Or, you may be tired of the heat and prefer a state where the temperatures are more moderate year-round.

Proximity to family may also play a big role in where you move. A 2024 Transamerica Center for Retirement Studies report found that 32% of retirees are prioritizing family. Living near loved ones could make your senior years more fulfilling while also giving you access to potential caregivers, should you need that help later in life.

One thing you should make a point to research before relocating is access to health care. Some states offer better access to Medicare plans than others, so you may want to use Medicare's plan finder to see what choices you have. You can also check out this scorecard from the Commonwealth Fund to see how well different states' health care systems stack up.

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How to ensure a secure retirement

Choosing your retirement location wisely could work wonders for your finances. But if you want to avoid financial worries in retirement, you'll need a comprehensive plan.

To that end, aim to save as much as possible ahead of retirement so you're less reliant on Social Security. The average retired worker today only collects about $1,979 a month in benefits, which translates to about $24,000 a year. The more savings you bring into retirement, the easier it will be to supplement your Social Security benefits and live comfortably.

Keep in mind that once you’re over 50, you’re able to make catch-up contributions in your IRA or 401(k). So if you’re 57 and think your savings could use a boost, you have that opportunity.

It's also important to start mapping out a budget ahead of retirement. And ideally, that budget should include room for extra expenses, like home repairs, that might arise on a one-off basis.

Also, make sure you have a solid handle on what health care might cost. Fidelity puts the average cost of health care in retirement at $165,000 for the typical 65-year-old as of 2024. Your costs may be higher or lower, though, depending on the state of your health and the Medicare plans you have access to where you live.

Finally, make sure you have a well-thought-out plan for making your savings last. That means establishing a safe withdrawal rate ahead of retirement so you know how much annual income you’ll have access to.

For years, financial experts were quick to promote the 4% rule. But that rule may too be aggressive, depending on how your savings are invested and what interest rates look like at the time.

Case in point: Morningstar's latest guidance points to 3.7% as a safer withdrawal rate. You may want to talk to a financial adviser to get help figuring out how much of your nest egg you can afford to remove each year without increasing your risk of running out.