Here’s What Expats Planning to Retire Overseas Need to Know
There are many reasons to retire overseas, but the top reason why people choose to retire abroad is to save on the cost of living. Plus, the number of people planning to retire in foreign countries is increasing rapidly. For example, it is estimated that a whopping 30% of UK residents intend to spend their retirement days in a foreign land. The numbers are also identical in various Western countries, including the United States.
It can be an attractive proposition for retirees to move to a country with a warmer climate and lower living costs. However, this is a major decision to make, so being prudent at the outset is essential. It would help if you did your research and evaluate the lifestyle you currently want to have before deciding which country to move to as an expat.
Here are the top five tips that will help you enjoy a happy and successful retirement life overseas:
1. Choose Your Retirement Destination
Expats worldwide have a fair idea about places where they can settle post-retirement because of their connections with fellow expats and past experiences. However, if you plan for retirement in a particular destination, you should find out if the country fulfills your requirements. If you want a more peaceful life, you want to move to an island instead of a city.
2. Be Realistic about Expenses as a Retired Expat
It is important to assess how much you would be spending when you start your retired life abroad. This is the time to identify all the expenses related to accommodation, taxes, travel, etc. You must plan wisely and decide whether you want to rent or buy a property. It is all about affordability at this stage of retirement planning. It is recommended that you talk to your retirement or investment advisor to make sure that your retirement savings and pension will both last and allow you to retain your standard of living abroad.
3. Know Your Tax Liabilities
As you move abroad, your taxes in your native land may decrease drastically. It is important to understand that your host country may tax you based on your income. Tax liabilities differ from country to country, so seek a qualified tax expert to advise you on this. An expat tax advisor may also guide you on potential investments to ensure you have passive income coming in when you retire. Some global destinations for retired expats are very favorable from a tax standpoint.
4. Work Towards State Pension
Check out if you can receive your state pension easily if you move to a foreign country. Note that your state pension may increase every year. The county where you retire may have a social security agreement with your native country, so check out the pension schemes in advance. For instance, American expats can enjoy social security retirement benefits in various countries only if they have no restrictions on receiving these payments.
5. Get Access to Adequate Healthcare
Healthcare is an important part of expatriate living. As a retiree, you will need the support of various healthcare facilities offered by your host destination. Check out if your new place has adequate public and private healthcare institutions. Also, find out if you would need to opt for private or international health insurance during your stay abroad. Choosing a robust global health insurance plan will help you obtain necessary care outside your host country. You should also make sure any global health plan that you purchase covers you for life as some of these plans cease after you reach a certain age. All these steps will ensure that you have a peaceful and relaxed retired life at the destination of your dreams.
Expats Planning to Retire Overseas
If you are planning to kick back and relax at a beach or enjoy a culturally rich and historic region or city during your retirement period, these tips will definitely help you in planning. Retiring abroad is an adventure but requires meticulous planning to avoid unforeseen circumstances.