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Have you ever wanted to be a permanent traveler? There are probably hundreds of lists out there declaring the ‘top locations’ to live abroad. Each one of those places, from Australia to Costa Rica to Singapore, might look more appealing than your current home-base. While they all have their assets, we understand that no place is the “best” place. Each retiree needs to take into consideration his or her own needs and desires. Before retiring overseas in a foreign (or not-so foreign land) be sure to do some extensive research on the best possible place for you.
Health Care
All retirees, especially those with medical concerns, need to know what to expect from local healthcare systems. Consider quality and promptness of medical care, insurance costs and necessary documentations or potential language barriers that may hinder care when retiring overseas. However, there is plenty of good news on the wellness frontier – in many areas, particularly if you’re coming from the US, out-of-pocket and insurance costs may be very inexpensive (or occasionally, even free). Many countries provide top notch care for a fraction of domestic costs.
Climate and Location
One of the major draws to retiring overseas is the chance to live someplace sunny and relaxing – the storybook tale of a tropical life on permanent vacation. It’s likely that you lived, worked and suffered through blustery, frigid winters and city traffic and noise. Are you one of the many who have had it with snow and ice and want to seek solace on a beach, under a clear blue sky?
It’s best to have realistic expectations of so-called “perfect climate destinations”. The weather patterns are likely to be radically different – especially if you are moving halfway across the globe. Consider the possibilities of rainy or buggy seasons, hurricanes, earthquakes, etc. and your ability to handle those types of situations.
Culture
You don’t want language and cultural barriers to hold you back from enjoying retirement. If you aren’t familiar with the native language and customs, start learning before making the move so you feel comfortable communicating with the locals. Of course, once you are fully emerged and start making acquaintances, you may pick up the language quicker. Luckily, English is spoken widely throughout the world in many foreign corners, but don’t let that stop you from picking up a new dialect in your golden years.
Also, be mindful of cultural discrepancies. Take the time to research the local history, traditions, native dishes, social norms, political climate – even the process of opening a bank account or renting an apartment. You will have to be flexible and open minded anywhere you go, but it is still beneficial to know exactly what you will be getting into.
Cost of Living
Since you will likely be subsisting on a fixed income, the cost-of-living in your desired locale must be carefully considered when retiring overseas. In some countries the dollar exchange rate won’t be favorable, but there are plenty of locations worldwide that are perfect for stretching savings. Housing, food and other expenses, like transportation and entertainment, are relatively inexpensive. Even locales right outside of large metro areas or popular tourist destinations. You just have to dig a little deeper. “Meeting” folks like yourself who already live in the desired area (over the internet, naturally) before you arrive is an excellent way to score insider information.
Retirement Savings/Taxes
Consult with a tax expert from the country (or countries) you are looking into. Sales tax, property tax, income tax and capital gains tax vary widely across our world of nations. It is possible to save a considerable amount or, conversely, poor planning might end up costing you greatly. If you’re from the UK, you will probably be advised to put your pension in a QROPS or QNUPS to avoid double taxation and heavy-duty fees.
All in all, never make a drastic move before taking an extended vacation to your top locale and seeking advice from experts. Do all of your homework before taking the plunge and whisking yourself away to a foreign country. Once you realize no place is perfect — get as close as possible by being picky, planning and prioritizing. Have fun out there on your journey to retiring overseas…
About the author: Mario Vitanelli is a freelance writer who specializes in international issues, including finance, retirement and the best places to hear a rocking Cumbia band. When he’s not taking scenic photographs of his dog on the beach, you can find him blogging about his investment expertise on behalf of The QROPS Group.
