Near family and friends. There is no substitute for living near friends and family members. Even the coldest retirement spot can be welcoming when you can watch your grandchildren play in your backyard. Living near relatives can also save you money if your children or other relatives can give you a ride to your next doctor's appointment or help with household chores you would otherwise pay someone to do.
Stay close to home. Most people who trade places don't relocate far from home. The majority of retirees who moved between 2010 and 2011 stayed in the same county and state. Only 0.8 percent of senior citizens crossed state lines or relocated abroad. There are many benefits to staying put in retirement: You already know your way around town, you don't need to make new friends unless you want to, and you now have time to rediscover all the weekday happenings you missed while you were working. "One of the big myths about seniors is there is this huge flood of seniors who, as soon as they retire, pick up and move somewhere," says Frey. "People tend to move to places they are familiar with. Maybe their children live there or they have friends there."