As a financial adviser, I regularly work with clients who are either saving towards retirement or are already retired and want to ensure their resources will sustain them throughout their golden years. One of the most significant decisions many face is where to live in retirement—specifically, whether to remain in the city or move to a rural setting. This choice impacts your lifestyle, financial well-being, and access to essential services.
The Downsizing Reality Check
When clients discuss downsizing, there’s often an expectation of substantial financial gain. However, the reality can be quite different. Many wish to remain in the same community they’ve been part of for years, which limits their options. Additionally, while they may be moving from a larger, older home to a smaller one, that smaller home is typically newer, with modern amenities and better insulation.
The financial difference between these properties is frequently less significant than anticipated. That said, the newer home brings benefits beyond just size—it’s usually warmer, double-glazed, and more energy-efficient, which reduces ongoing costs. These factors create a complex financial equation that goes beyond simple property values.
Rural Retirement Considerations
Country living offers undeniable appeal—more affordable property prices, larger sections for gardening, and a quieter pace of life. For many New Zealanders, the dream of a lifestyle block represents the ideal retirement setting.
However, this choice comes with important considerations:
- Healthcare access becomes more challenging, with hospitals often an hour or more away
- Emergency services may have longer response times
- Specialist appointments require significant travel
- If one partner needs hospitalisation, the other faces accommodation or travel challenges when visiting
Beyond practical concerns, there’s also the social aspect. Having grown up in a rural community, I know firsthand that while rural areas offer community, integrating into these networks takes time and effort. This is particularly important for single retirees, for whom social connections are vital to well-being. It’s not uncommon for retirees to feel isolated initially, especially if they’ve left behind a robust social circle in the city.
I often suggest getting involved in local activities and organisations to ease this transition. This might mean joining a community garden, volunteering at the local library, or participating in town events. These activities help you meet people and give you a sense of purpose and belonging in your new community.
While rural properties often come with more land, assessing how much maintenance you can realistically do is important. A large garden or lifestyle block can provide great joy and activity but also requires ongoing work. Our capacity for physical labour typically decreases as we age, so what seems manageable at 65 might become overwhelming at 75 or 80.
City Retirement Advantages
Urban living maintains proximity to comprehensive healthcare services—a factor that becomes increasingly important as we age. My parents, now approaching 80, find their willingness to drive into the city diminishing, highlighting how our priorities and abilities change over time.
City living also typically means:
- Established social networks remain intact
- Better access to public transport options when driving becomes challenging
- Greater variety of services and amenities within easy reach
- Less property maintenance (generally)
The New Zealand Retirement Expenditure Guidelines suggest country living is more affordable overall, though interestingly, one of their three lifestyle options showed higher costs for country living. This reflects the complexity of individual circumstances and choices.
Making a Thoughtful Decision
For those contemplating a move to the country, I often suggest “trying before buying”—perhaps taking a long-term rental for three to six months to experience the lifestyle firsthand. This allows you to:
- Test the daily reality of country living
- Begin building community connections
- Understand the practical implications of distance from services
Most importantly, approach retirement planning with flexibility. The perfect setting at 65 might not suit your needs at 80. Being open to change and having financial strategies that accommodate potential adjustments is crucial.
Planning for Your Unique Journey
Retirement location decisions aren’t simply financial calculations—they’re deeply personal choices that reflect your values, health needs, social connections, and lifestyle preferences.
What works great for one person might be completely unsuitable for another. The key is thoughtful consideration of immediate desires and long-term needs, coupled with financial planning that provides options as circumstances change.