NEW YORK (CNNfn) - Sunshine and golf may be the most important criteria for many retirees but choosing where to retire is as much a monetary choice as an emotional one.
Retirees can be lured by their feelings in the process, experts say, choosing places for superficial qualities, only to find out their golden years have become tarnished by poor decisions about where they will live.
Retirement destinations are undergoing a transformation of sorts in the United States.
While Florida remains a popular destination, other areas are seeing a surge in interest among retirees.
North Carolina, in particular, has become a hot spot. While its climate is mild, its abundance of college towns is proving to be a draw as well.
Cities like Durham, home to Duke University, and Chapel Hill, location of the University of North Carolina, have become attractive to retirees seeking small town atmosphere with cultural offerings and good health care via university hospitals.
Retirees are also increasingly looking to buy second homes for retirement, rather than completely giving up one home for another.
Questions of choice
Retirees are not necessarily making hasty decisions, said Ken Stern, author of "50 Fabulous Places to Retire in America," but they need to expand the number of criteria they consider.
"Most people's concerns are what I call the 'Three C's': crime, climate and cost of living," said Stern.
While people are well-advised to consider what is important to them when making a choice about where to live, they need to make sure their decisions are based on solid facts.
Stern said crime considerations can be difficult, especially since "crime is everywhere."
However, a wide variety of crime statistics is available. You can contact a prospective city's government and they will be able to point you toward local sources of this information.
If you have a specific neighborhood in mind, you can pinpoint the appropriate police precinct and make inquiries there.
In addition, crime statistics are available online, although they are usually citywide rates and give you little specificity.
Web sites such as BestPlaces.net allow you to pick two cities and compare their crime rates. You can also break the information down into specific crimes, such as burglary and auto theft.
The idea of moving to Florida when retiring has been a popular one as seniors seek to trade harsh -- or even merely mild -- winters for year-round sunshine and 70+ degree temperatures. Indeed, Florida has the largest population of retirees in the country.
However, Stern emphasized that it is important to keep in mind that even in the warmest retirement areas, there can be major swings in climate.
"If you go to Las Vegas in December it may seem like a really great climate," he said. "But when June comes around, you may not be able to stand the heat."
Because of these fluctuations, it is important to visit any prospective city at various times in the year, or at least once in the winter and once in the summer.
Also, do a lot of self-evaluation. If you've lived most of your life in Michigan, you may appreciate the change in seasons and a nice winter snowfall more than you imagine. You may end up longing for these seasonal shifts.
Remembering taxes
Probably one of the first considerations you'll have about the cost of living in the city you're considering will be housing and other general everyday prices.
In the process, the effect of taxes may be forgotten, but it shouldn't, according to David Baer, head of the Public Policy Institute at the American Association of Retired Persons.
"I think they should definitely look into taxes when scouting out places to retire," said Baer, who emphasized that taxes don't have to be the deciding factor in where you live, but can be part of a clearer picture of what it will cost you to retire there.
Since many retirees will be relying on Social Security benefits for some, if not all, of their living costs it is important to know how states handle such benefits.
According to a 1998 study done by Baer for the AARP, 26 of the 41 states that have personal income taxes exempt Social Security benefits from taxation.
Others offer partial exemptions. For example, Utah exempts the first $4,800 in pension income and taxable Social Security benefits. Some states also have a minimum age (varying from 55 to 65) to receive these exemptions.
Compare State Tax Rates Online
Other taxes enter into the mix as well. For example, New Hampshire has no personal income tax. While that may at least make you consider packing up for Concord, keep in mind that it does have higher property taxes than many states.
Choosing wisely when it comes to taxes can add up to a much different retirement picture.
"If I move to Nevada, I can save on all my state tax," said Stern. "That can be enough for an extra trip each year."
It's important to make these retirement decisions slowly and leave yourself some wiggle room even after you've decided on a new city.
One way to avoid getting stuck is not to buy a place in your new town immediately. Consider renting an apartment or house in the new area instead.
In the same way, leave your options open at home. Don't sell your house right away if you can avoid that. You may be able to rent it out until you're sure you've made the right choice. 
-- by staff writer Randall J Schultz
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