What You Need to Know About Retiring Abroad
Retirement can be the most exciting adventure of your life. But, where will you spend it? Retiring overseas can be feasible for many Americans, you’ll just need to consult a qualified financial advisor.
Updated on Jan 21 2020
Retirement can be the most exciting adventure of your life. But, where will you spend it? You may be interested in downsizing and moving to that part of town you’ve always loved. Or, you could move closer to some family and make visits much easier. But, it’s possible that you’re looking to make a more drastic change. Retiring overseas to a new country can be the adventure of your lifetime. And, this doesn’t have to just be a fantasy. Retiring overseas can be feasible for many Americans, you’ll just need to consult a qualified financial advisor.
Any retirement will require a great deal of planning, but you’ll need to make even more considerations if you plan on relocating to a new country. But, don’t let this dissuade you. Depending on your situation, retiring abroad may be ideal for you. And, some folks have found that retiring overseas has been one of the most enjoyable adventures of their lives. Read on to learn how to retire outside of the US, and how you can plan to retire abroad.
A great number of retirees rely solely on their Social Security benefits for income during their retirement. And, this can dissuade many people from even considering retiring overseas. Folks often think that you cannot claim or receive benefits while living overseas, but this isn’t the case. While all situations are different, many retirees are eligible to continue collecting their benefits while overseas. You can use the Social Security Administration’s Payments Abroad Screening Tool to learn if you can plan to retire abroad.
Once you’ve determined that you’re able to receive your benefits while retiring overseas, you should start thinking about logistics. Primarily, where will you be living? This is a decision that will greatly depend on your personal tastes. Of course, retiring overseas is often done to cut down on your expenses, so you’ll likely be choosing a country with a significantly lower cost of living than that of the US. Once you determine which locations are feasible for retiring overseas, you’ll need to figure out where you’ll feel the most comfortable. Do some research on the areas and their customs to see if you’d enjoy living there. And finally, be sure you consult with a financial advisor who can show you how to retire overseas.
People often assume that retiring outside of the US will be easy financially due to a lower cost of living. While this is true to an extent, it doesn’t mean that you’re guaranteed frugal living in a new country. For example, you may be tempted by affordably priced homes in a foreign country. But, buying a home overseas can be far more complicated than in the US. As a foreigner, you may struggle to receive a mortgage. So, you could be required to pay for your new home in full. Additionally, this expensive purchase may not provide the benefits that you’d hope. You may want to consider renting, as it can be relatively inexpensive and doesn’t require you to tie up a large sum of cash overseas. Plus, this will allow you the flexibility to move if plans change.
Outside of housing, there are still plenty of considerations you need to make for retiring abroad. It may seem convenient to bring your finances along with you to a new country, but this often isn’t the most beneficial move. Instead, you’ll probably want to keep your assets in the US. However, you may end up needing cash on a regular basis. In this case, you’ll want to choose a bank account that will reimburse you for ATM fees overseas. This way, you can make the most of your savings without transferring all of your savings to a bank you may not feel as comfortable with.
Healthcare costs can be one of the largest expenses during any retirement. Because of this, you should always be sure that your retirement planning budget makes considerations for these costs. This is especially true for retiring overseas. Do some research on your chosen retirement destination and it’s healthcare system. Depending on where you’ve chosen as a destination, you may be pleasantly surprised to learn of significantly lower healthcare costs than the US. But, you’ll only know this after doing the proper research and consulting with a financial advisor on how to retire overseas.
Every retirement plan needs a trustworthy financial advisor. Regardless of if you plan on retiring in the town where you grew up or moving across the globe, you should get some proper guidance from a financial professional. They can provide you with strategies for your specific situation. Most importantly, they’ll be able to help you answer that oh-so-important question: “can I retire abroad?” And, in terms of financial planning, there isn’t a major difference between retiring in the US or overseas. Either way, you’ll need to create an effective budget. So, if you think retiring overseas is for you, get in touch with an expert financial advisor and begin planning.
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