I had the same heat pump at my old house for 19 years until I sold it last January. Never had a problem with the heat pump until the day after the house went on the market. Fortunately the realty company I used included insurance to cover most of the cost of replacing the pump.

Now that I am in my new house with natural gas, I would never go back to a heat pump, unless natuarl gas was not an option. The house heats up fast, I throw a switch for the fireplace, and instant hotwater anywhere in the house. I do miss my woodstove though, but I can burn wood out on the cement deck.

The problem with the heat pump is its not much good below 32 degrees, which at that temp and below requires a furnace. I don't know, maybe the newer ones are better. I can't tell which is cheaper yet as I am paying an average based on the previous owner, but so far, it is less. When the power goes out your gas is still available. Just need a generator to run the fan. You would need a pretty good sized generator to run the heat pump.

Retirement is great, even in this down economy. I retired a few months ago and the advantage is that you start out learning how to live in a down economy, rather then living high off the hog and then suddenly everything hits bottom. Oh yeah, you can fish and hunt all week and stay the hell out of the woods and off the water during the weekends. So many advantages and so few downsides.

Good luck.