Where you live in retirement is one of the most important decisions you’ll make. It’s not a purely financial choice, but finances certainly play a part in it. The place you call home determines your cost of living, the taxes you’ll owe, and more.

If you look at it purely from a numbers perspective, some parts of the country make more sense to retire in than others. A recent Nationwide survey found that residents of two regions in particular worry that where they live isn’t a smart place to retire financially.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

It all comes back to the cost of living

The Nationwide survey analyzed the country by four regions — the Northeast, the Midwest, the South, and the West. Nearly three in four Midwestern and Southern respondents said it makes financial sense to retire in their cities or states. Those in the Northeast and the West were far less confident.

Only 63% of Western residents and 59% of Northeastern residents said they thought it made financial sense to retire in their current cities or states. The survey also found that 20% of those who live in the Northeast and 21% of those who live in the West expect to be forced to relocate to somewhere more affordable in retirement.

This fits with what we know about the cost of living in these areas. Much of the Midwest and the South have a low to average cost of living compared to the national average as measured by the Missouri Economic Research and Information Center (MERIC). The most expensive states in the contiguous United States are in the West and Northeast.

That said, many who live in these regions understand the costs and are prepared to stay where they are anyway. Interestingly, those in the Northeast and West were actually more likely to say they wanted to retire in their current city or state than those in the Midwest and South.

It’s ultimately an individual decision that will depend on several factors, including money. You may already have a retirement destination in mind or you might not be sure yet. But once you know, it’s a good idea to look over your retirement budget again to make sure you’re saving enough.

How to save enough for retirement

Figuring out how much you need to save for retirement starts by thinking about what your retirement lifestyle will look like. This is different for everyone. You may have big plans for trips and hobbies. Or your life may not change much at all.

You can use your current expenses as a baseline for estimating your future costs. But if you plan to relocate in retirement, you may want to inflate or deflate that budget depending on how the cost of living in your current city compares to that of your retirement city. You can also use tools like UMass Boston’s Elder Index to estimate how much money you’ll need to live comfortably in retirement. Keep in mind that this focuses on essential expenses and doesn’t account for extras like travel.

As you get closer to retirement, carve out time each year to reexamine your retirement plans and make changes as necessary. You might decide you want to retire somewhere different than you originally planned. Or you might realize it’s impossible to retire in your hometown on your current budget. The sooner you make these adjustments, the better your odds of retiring comfortably will be.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.