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Many people dream of relocating when they retire. While some spots are more popular for retirees, these areas often come with higher costs of living. And because most retirees live on a fixed income, it’s important to keep a close eye on costs. If you’re dead set on retiring to a pricier area, you may even need to continue working for a few years longer than you planned to make it happen. Here are things to consider when evaluating your options.

Taxes

From state to state, and even from town to town, the baseline taxes that residents must pay can vary quite a bit. Some states, such as Florida, have no state-level income tax at all. Others have either a flat tax rate — where the state taxes all income at the same rate — or a progressive tax — in which those with higher incomes pay a higher rate. But even if your state has no income tax, your town’s property taxes may cut into your savings. It’s also important to assess the sales tax rates in the area where you’re hoping to move, as these could also add up. Some municipalities have local sales taxes as well, so be sure to do your research to determine if an area is truly affordable for your retirement budget.

Housing Costs

Home prices and rental rates have increased steadily for years, but this is especially true in places with competitive real estate markets. It may be helpful to research future development plans in your area. If a large company is planning to build or expand a major facility nearby in a few years, for example, expect housing costs to increase as new employees want to move closer to their jobs.

Insurance

Many of the most popular retirement destinations — particularly along the coast — are also in areas that are at particular risk of certain disasters. For instance, Florida’s hurricane season lasts for several months every year, and residents sometimes face catastrophic storm damage. Because of this, currently the average cost to insure a $250,000 home in Florida is $1,648 per year, compared to $681 per year in Delaware. Your car insurance may be higher in certain states, too, which often depends on the average number of uninsured drivers in the area and other factors.

Transportation

Unless you enjoy (and can afford) frequent travel, it’s important to think about the proximity to the places you’ll want or need to go often. Being far away from loved ones could require you to spend a lot of your retirement income on visits, and if you’re an outdoorsy person, living in a city means you’ll be planning — and paying for — frequent getaways. But it’s not just leisure that could cost you. Living far from grocery stores, doctors, pharmacies and other necessary places can add significantly to your household budget, whether you drive yourself or take public transportation.

State Benefits

Depending on where you live, your Medicaid benefits could range from generous to very low, potentially leaving you on the hook for expensive in-home or facility-based care. Medicare premiums vary from state to state as well. If you’re able to self-fund your medical care, this may not affect you as much. But if you need to rely on state benefits, be sure to research the costs and coverage in the state where you intend to retire.

Overall Cost of Living

The cost of everyday items such as groceries, clothing, home services and more can vary tremendously depending on whether you’re located in a big city or rural area. With so many factors to consider for retirement, using an online calculator to help project cost of living in areas you’re considering can be a useful starting point. However, it may also be helpful to speak to a financial professional to help you figure out what you can afford, and which area suits your budget best, so you can adjust your retirement plan accordingly.