How to Retire Years Sooner: Relocation & 72(t) Strategies That Make Your Money Go Farther

Rethinking Retirement

The average retirement age in America keeps creeping higher — yet the cost of living in many states is skyrocketing. That math doesn’t work if your goal is freedom, not just survival. The good news? Relocating to a lower-cost city in Arizona, combined with a 72(t) income strategy, can allow you to retire years sooner while maintaining the lifestyle you’ve worked hard to build.

For many people, the dream of retirement feels like something reserved for “someday.” But what if someday could be sooner than you think? Where you retire and how you structure your income plan can make all the difference. By relocating to a lower-cost area and tapping into strategies like 72(t) distributions (sometimes called 79T), you can unlock the ability to retire early, stretch your money further, and enjoy more freedom.

Relocate Where Your Money Works Harder

Not all retirement destinations are created equal. Cost of living varies drastically across the country, and even small changes can compound into big savings. Housing, healthcare, property taxes, and lifestyle costs all play a role in how far your money goes.

For example, moving from a high-cost state to Arizona can lower expenses on housing, utilities, and even taxes—giving you the ability to maintain (or even upgrade) your lifestyle without draining your retirement accounts too quickly. When your expenses are lower, your savings last longer. That simple shift can shave years off your working timeline.

The Power of Early Retirement with 72(t) Distributions

One of the biggest roadblocks for people considering early retirement is the 59½ rule—the age before which tapping retirement accounts often comes with steep penalties. But there’s a little-known IRS provision, 72(t) distributions, that can change the game.

Quick Answer (Featured Snippet Ready):
A 72(t) distribution is an IRS rule that allows you to take penalty-free withdrawals from your retirement account before age 59½ by setting up Substantially Equal Periodic Payments (SEPPs). These withdrawals must continue for at least 5 years or until you reach 59½, whichever is longer.

This strategy essentially creates an “income bridge” that allows you to retire early without waiting until traditional retirement age.

Combining Relocation + 72(t): A Powerful Duo

Relocating and leveraging 72(t) distributions together can create a financial multiplier effect:

• Lower expenses: Moving to a more affordable city or state reduces how much you need each month.

• Penalty-free income: 72(t) distributions provide steady income before traditional retirement age.

• More freedom: Together, these strategies can accelerate your ability to step away from work while maintaining financial confidence.

Imagine reducing your housing costs by $1,500 per month and covering your lifestyle with a 72(t) plan. That’s the kind of math that can unlock years of retirement lifestyle earlier than most people think possible.

Real Stories of Early Retirement in Greater Phoenix

Here are some real-world styled examples of how relocation plus 72(t) strategies can transform retirement timelines:

• California → Surprise: Selling a home in Orange County and moving to Surprise, AZ cut housing costs nearly in half. With lower property taxes and builder incentives, 72(t) distributions helped make retirement in their late 50s possible—five years ahead of schedule.

• Seattle → Goodyear: A relocation to Goodyear’s Estrella community paired with 72(t) withdrawals at 56 dropped monthly expenses by nearly 30%. Instead of waiting until 65, retirement meant daily golf and hiking became the new routine.

• Chicago → Verrado (Buckeye): Rising property taxes and winters in Chicago were draining savings. Moving to Verrado in Buckeye cut annual costs by $20K. That savings, plus 72(t) income, meant retiring seven years earlier than planned.

• Portland → Chandler: Relocating to Chandler, AZ reduced housing and utility costs. One spouse continued remote work while the other drew from 72(t), creating a semi-retired, work-optional lifestyle in their early 50s.

• Bay Area → Scottsdale (Early 40s): A younger couple maxed 401(k) contributions from their early 20s. By their early 40s, they had built enough to start 72(t) withdrawals. Relocating to Scottsdale stretched their savings further and allowed them to retire decades ahead of schedule.

These examples highlight that it’s not just about age—it’s about strategy, planning, and choosing the right location to make your money go farther.

Things to Consider

Like all strategies, this isn’t one-size-fits-all. 72(t) distributions are rigid—you must commit to the schedule. Relocation also requires careful thought around family, healthcare access, and lifestyle. That’s why this strategy works best when paired with financial planning that looks at your long-term tax impact, investment mix, and retirement goals.

Frequently Asked Questions About Retiring Early with 72(t) Distributions

Can I really retire early with a 72(t) distribution?
Yes. By setting up penalty-free withdrawals, you can create steady income before 59½. Pairing this with relocation to a lower-cost state like Arizona makes it even more effective.

What are the risks of using 72(t)?
The payments are inflexible—you must stick to them for at least 5 years or until 59½. Stopping early could trigger penalties, so planning is critical.

Why is Arizona one of the best places to retire early?
Arizona offers lower housing costs compared to states like California, Illinois, and Washington, plus a wide choice of retirement communities, active adult amenities, and no tax on Social Security benefits.

What retirement communities in Phoenix are popular for early retirees?
Communities like Verrado in Buckeye, Estrella in Goodyear, Surprise, and Scottsdale are popular among those seeking affordability, lifestyle perks, and strong long-term value.

Final Thoughts

Retirement doesn’t have to be a far-off dream. With the right strategy, you can relocate to a place where your money works harder, use 72(t) distributions to unlock early income, and create a lifestyle you love—years before most people think it’s possible.

👉 Thinking about retiring early in Arizona? Let’s run a personalized cost comparison and explore how relocation plus 72(t) distributions could unlock your next chapter. Contact me today.