7 best reasons to retire overseas
7 best reasons to retire overseas , Relocating overseas is often a grand adventure. You get to reinvent yourself in a new place and completely start over. Moving to a foreign country in retirement could also dramatically lower your cost of living, housing and medical care, meaning you could afford more luxuries than would ever be possible in the U.S. Click ahead to discover the seven best reasons to retire overseas.
The primary motivation for many people considering retirement in another country is the opportunity to stretch their retirement nest egg. It is possible to live comfortably in retirement in a number of safe, welcoming, beautiful and interesting destinations on as little as $1,000 per month. And some of these places are already home to communities of foreign retirees who can offer friendship and like-minded company.
For the retiree on a budget, moving abroad can turn a make-do and get-by retirement struggle into a lifestyle of comfort and freedom. Top destination choices for reducing your cost of living in retirement to $1,000 per month or less include Cuenca, Ecuador; Granada, Nicaragua; Santa Fe, Panama; and Chiang Mai, Thailand.
The cost of medical care abroad can be a fraction of what it is back home. Medical tourism has become a big business in a number of countries that welcome foreign retirees. As a resident retiree in Panama City, Panama; Medellín, Colombia; Kuala Lumpur, Malaysia; or Puerto Vallarta, Mexico, for example, you would have access to top-notch, international-standard medical care that has been developed, at least in part, for medical tourists.
Medical procedures in these places can cost half as much or less, compared with the United States. The hospitals are often staffed with English-speaking doctors trained at U.S. medical schools, making these cities top choices for retirees with ongoing health concerns. As a retiree in these locations, you could afford even elective procedures, such as cosmetic dentistry or other cosmetic care. The cost of a crown in Medellín can be $300 to $400. The same procedure would cost three to five times as much with a U.S. dentist.
When retiring anywhere in the United States, the typical retiree is forced to scale back a lifestyle. Even an above-average retirement budget doesn't usually allow for household help or indulgences like regular massage or spa treatments. In other countries, you can enhance your standard of living in retirement. Take the average monthly Social Security payout with you to Ecuador, Nicaragua, Panama, Thailand, the Philippines or Malaysia, and it'll accommodate all kinds of extras.
As a retiree in any of those countries, you might not have to do a household chore again. You could afford not only full-time help around the house but also a driver, a gardener, in-home massages, good wines with dinners at home and regular dinners out. In each of these countries, you could engage full-time household help for $200 a month or less. A once-a-week gardener could cost $50 a month. And an hourlong massage from a professionally trained masseuse, who will come to your home with a massage table, can cost as little as $20.
Health insurance and medical costs are usually a significant part of an American retiree's budget. In other parts of the world, full health coverage can cost $100 a month or less, which for many people is less than the cost of Medicare premiums.
When retiring to another country, you need to make an important choice about health insurance. You can choose an international policy from an international insurer such as Bupa, or you can opt for a local policy in the country where you're retiring. If you qualify for local country coverage (the primary determining factor is age), you'll likely be pleasantly surprised by the cost. It can be less than $100 a month, and sometimes much less depending on your circumstances and age.
A retired couple living in Boquete, Panama, for example, could acquire local Panama insurance for $80 per month. A local policy based in Montevideo, Uruguay, that provides full coverage, including prescription medication and in-home follow-up care, can cost as little as $60 per month.
Perhaps you already live someplace sunny, warm and pleasant. But if your life up to this point has been spent in a part of the world that sees major snowfalls, extreme seasonal changes or dangerous weather such as hurricanes, retiring overseas could mean choosing the climate that suits you best. Do you prefer a spring-like climate year-round, consistently warm weather or watching the changes of the seasons? Imagine your most comfortable climate and then target those places where you can enjoy it.
The best tropical choices include Ambergris Caye, Belize, and Roatan, Honduras, which also qualify as two of the most affordable places to retire in the Caribbean. For 365 moderate and pleasant days every year, consider Medellín, Colombia, and Cuenca, Ecuador. If you like change and contrast, think about Uruguay and Croatia, two countries that enjoy four moderate seasons annually.
When planning your retirement overseas, it's best to consider the cost of housing wherever you're going separately from the general cost of living there. Housing expenses are typically the biggest part of any retirement budget. The good news is that in certain parts of the world you can reduce these expenses to $500 per month or less. In a few places, you'll be able to get by on as little as $300 per month.
This is the case in parts of Panama parts of Belize, parts of Ecuadorgnd most of Nicaragua, Thailand and the Philippines. With rent of $500 per month or less, even a modest budget can allow for a comfortable retirement.
For many people, the most compelling reason for considering retirement in another country is the cost of living and housing. If your retirement budget is small, perhaps you feel you have no choice but to relocate someplace where your income will support a comfortable lifestyle. But a greatly reduced cost of living could be only the beginning of the payoff from retiring someplace new and foreign. The other big, and possibly bigger, benefit may be the chance to start over in your life.
What did you want to be when you grew up? What dreams and hobbies have you set aside until now, as you've made a living, paid the bills and raised a family? Pull them out and dust them off. Now's your chance.
Whatever the objectives, pastimes and recreational activities you've long daydreamed about pursuing, now you can. Retirees have an opportunity to travel, wander and discover. You could spend your days writing a book, learning to paint or studying a foreign language. Some retirees choose to start a business, be a mentor or do volunteer work.
Once you've relocated to new surroundings, the world will appear new. From this vantage point, you may see new opportunities for reinvention, fun and maybe even profit. Once you plan to retire to another country, you never know where that move might lead you.
