While we encourage you to do some retirement planning, we don’t take it for granted that you plan to retire in the United States. Have you dreamed of retiring somewhere warm or not-so-warm overseas? Or have you wondered how you can make your money go further in retirement? Spending your golden years abroad isn’t for everyone: it will take some advanced preparation and a Fee-Only Financial Advisor can help.
The Miami Herald offered, “Six steps to size up your plan to retire abroad.” Some of these steps include:
Do some research stateside but also go for an extended stay. Online searches will yield plenty of information but you don’t want to move somewhere without having spent enough time there to see what daily life will be like for you. You don’t want to invest a lot of time and effort into moving abroad only to find that you really don’t want to be there.
Look at cost of living and not just exchange rates. The Miami Herald advises that, “The price of real estate, meals or a taxi are better indicators of how affordable a country is than how its currency is faring versus the dollar. That’s because exchange rates fluctuate.”
“To take full advantage of the affordability of some countries, retirees should also resist shopping as if they were still in the United States and emphasize local products rather than pricey imports.”
Get in-depth information on tax and immigration requirements. You need to figure out whether or not you want to become a legal resident and what your options are for getting a visa. You will still have to pay taxes as an American citizen living abroad and you need to know if there are tax liabilities in the U.S. and what taxes you’ll need to pay to the country where you reside. Some countries want retirees from abroad and have visa options that suit expatriates.
Ensure that you will have adequate healthcare. “Healthcare access and affordability is a key roadblock to retiring overseas for some seniors because they would no longer be covered by Medicare.” You can keep paying Medicare premiums in case you end up back in the United States.