Retirement Living

Moving in Retirement? 5 Things to Consider

photo of a village - moving in retirement

Many people are planning to relocate to a new place in retirement. But everybody wants to move for different reasons.

Some want to be closer to family and friends, others want to reduce expenses and downsize to a smaller home. Many new retirees want to move to a better climate. People might feel quite isolated during long and cold New England winters especially when they are older and no longer working.

However, there are still many people who would like to stay in their homes as they age. But it’s not always possible or practical. It may be too large to maintain or to be too far from people you love.

Whatever your reason to move to another place in retirement, keep in mind that your new location meets your needs in the long run. Because relocating is not easy. It can be expensive and stressful.

Before actually moving to a new state or community (even abroad) in retirement, there are many things to consider.

Access to healthcare.

As much as we might want to deny it, we will all need more health care as we grow older. That means we will need easy access to good hospitals, medical centers, and quality healthcare providers.

Also, do not forget to consider other health services such as physical therapy, massage therapy, and other services you might want to use.

If you are planning to move to a small coastal town in Maine, you will be quickly disappointed if the closest hospital is two hours away. Not to mention the tedious task of finding new medical care providers whom you like and trust. So, before you move, make sure that you know the local healthcare standards.

To live closer to family or not?

Most of us have children, grandchildren, and a social network of friends. Numerous studies have shown that one of the absolute musts of a happy retirement is proximity to friends and family, which is good for us both mentally and physically. If you move away, you can make new friends, but you cannot make new family members.

How often do you think you will visit relatives you left behind? How much does it cost for you and your family to make a round trip? You should be asking yourself these kinds of questions if you are planning to retire in another state or abroad.

Don’t underestimate the emotional impact of leaving your family and friends behind. And perhaps the costs of staying connected. Will you feel the need to travel back often?

Certainly, we interact these days through Zoom and other virtual platforms. That’s a convenient way to speak with each other and share what is happening in our lives. But still, is it the best way to feel connected? You might miss spending birthdays, holidays, and other events together with your family or friends.

On the other hand, many retirees choose to move out of state to be closer to their children and grandchildren. While it can work great for some families but not for others. Maybe you leave your friends behind and move closer to your children only to discover that they are so busy with their careers and schools that you see them much less than you’d hoped for. It happens.

Just accept that moving your physical, financial, and social life to a new state is a big task and will come with some unexpected challenges. You just need to figure out what works for you both financially and emotionally.

Is Relocating in Retirement a Good Idea?

Pay attention to taxes.

Even in retirement, you can expect to pay taxes. Some states are more tax-friendly than others. So, it is important to know the situation before you decide to relocate.

For example, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and Alaska states do not have a state income tax. All other states do.

So, if we move from Massachusetts where we live right now to Florida, we will get rid of a state income tax. But if you move from New Hampshire to South Carolina, you gain a tax. And there are other dues and fees to consider. Before moving to a new state and community, find out how much people typically pay in property and sales taxes.

The federal government taxes Social Security benefits. In addition to that, certain individual states also apply their own income tax to Social Security payout. Fortunately, even those states do tax Social Security, they often provide exemptions or ways to reduce or eliminate the tax, typically based on your age or income.

Hence, if you rely on Social Security as your main income, it is important to learn how Social Security benefits are taxed in your new state.

Can you really afford it?

One of the biggest reasons that people move to a new area in retirement has to do with money and the cost of living. We move to a state that is less expensive to make our retirement savings last. That could come in the form of more affordable housing costs, lower taxes, cheaper healthcare, or a combination of all of these together.

Cost of living in a new location.

It is not a secret that your cost of living will differ significantly from state to state and even town to town. If you have put together your retirement budget, you will know approximately how much you can afford to spend. What will your costs be in the new location?

Look at the houses in the area you are planning to relocate, and find out how much utilities, home repairs and maintenance, yard care, and other typical living expenses cost on average. Other costs are homeowner’s association fees, condominium fees, homeowner’s insurance, and transportation.

Homeowner insurance.

The average cost of annual premiums for homeowners’ insurance fluctuates from $376 to $3,576 depending on the location. The potential for local natural disasters such as hurricanes, tornadoes, earthquakes, fires, and flooding plays a role in those premiums.

It’s worth researching how much more or less you have to pay for homeowner’s insurance.

House size – big or small.

When shopping for your new home think about the size. Do you need three bedrooms and two bathrooms for two people even if you expect visits from your children, grandchildren, and other relatives? They can always stay at nearby hotels or rent an Airbnb.

Even if you help to pay for the hotel bill it will be cheaper than the extra money you have to pay for a large size house. Think about real estate taxes, insurance, maintenance, and yard care.

How to pay for your new home?

The cost of housing is typically the largest category in your budget. Keep this in mind while deciding how to pay for your new home. Do you have enough home equity or no mortgage at all to buy your new home with cash? In this case, you do not need a mortgage.

If you use the proceeds from the sale of your home to buy a new one with cash, consider how you will invest the rest of the money. But if you do not want to use all of the proceeds or the proceeds of the sale are not enough, you should consider a mortgage.

Keep in mind that retirees often face certain challenges when applying for a mortgage. The biggest challenge is to show lenders where their income is coming from.

Sources of income can be Social Security, dividend income, rental income, withdrawals from retirement accounts, etc. Your income should be well documented, sufficient, and sustainable to apply for a mortgage.

Location and community.

When you are thinking about moving to a different part of the country, location is important. Every place is different.

First, think about the type of lifestyle you want as you age. What kind of activities do you enjoy and what location might be a good fit for you?

If you like entertainment and going out, consider a city with lots of dining-out options, museums, art galleries, and concerts. If you love to spend time outdoors, you may want to live in a place with a warm climate and lots of outdoor activities.

Before you move, do your homework, and find out what is available in the town you will be moving to.

For example, if you choose to move to an active adult community, ask people who live there what is their lifestyle. Plan to visit the community to check it out yourself. Would you be comfortable living there on a full-time basis? Would you like the lifestyle and the whole atmosphere there?

If you are relocating to a single-family and condominium neighborhood, find out what kind of recreational activities and social life are available. If there are any good quality medical services and hospitals nearby.

If you plan to travel or expect visits from the family, consider the proximity to an airport. Will you need to have connections to international flights?

Hence, before you decide to buy a house in your new location, rent a place first to give it a trial. A place that seems like a dream may be less than what you expect in reality.

As we age, our comfort and sense of happiness are important. If you consider moving in retirement to a new place, you should find a place that brings you joy and happiness.

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7 Things People Like Most About Retirement

by Maggie Leave a Comment

a couple running on the beach -things people like about retirement

If you are in your 50s or 60s, you are probably looking forward to retirement with eagerness and anticipation. Because retirement is a well-deserved reward that you have earned with decades of hard work.

But perhaps you are unsure about what retirement will be like. It is common to feel uncertain about whether you will be happy or not after you stop working. There are many reasons people love being retired.

Here are 7 things people like most about retirement.

1. The Feeling of Freedom.

Most retirees appreciate the feeling of freedom. There is no pressure, no stress, and no problems. You do not need to worry about your career path, getting kids into college and paying for their education, or keeping up with your neighbors.

Also, retirees love not having work-related stress in their life. You do not have to set up an alarm clock if you don’t want to. You can move to the city or another country. You can do something or do nothing. Or you can do what you want where you want.

You may find that you enjoy having a slow morning routine because you don’t have to worry about getting up early for work and rushing out of the house. You may discover that you enjoy the late-night TV shows that you couldn’t watch when you worked. Or you like to go for a walk late at night when it is calm and peaceful. It is your choice to spend the days the way you like it.

2. Having No Rush in Life.

After spending decades working and building their careers, most people appreciate that there is no rush in their life. Finally, you have time to enjoy the pleasure of a simple life.

It could be sitting outside in your backyard, enjoying a morning walk, or just having time to spend with your family. Many retirees find that the simple things in life are the most rewarding.

If you do not have to rush anywhere it is easier to be spontaneous.

If you feel the urge to get out of the house and do something different than your everyday routine, then do it. It is a beautiful day, and you feel like postponing your chores and spending time outdoors. You can sit on a deck with your morning coffee and a good book or take a walk in the park.

And if you want to take a day trip then go for it. If your friend invites you to get together, you can more easily say yes.

3. Control of Your Own Time.

Being in charge of your own time is a dream coming true for many retirees.

During a busy career, you get used to living by other people’s agenda. You have your company agenda, your boss, your clients, etc. There is little time left for your own agenda in life. That is why having your own schedule, not someone else’s, becomes an important part of retirement life.

Mornings without an alarm clock. Days without a boss or deadline. A simple life. Being able to do anything at a slower pace often brings joy in retirement. If it doesn’t get done today, there is always tomorrow. You have more time for yourself and get to do the things you might enjoy doing without being rushed.

You can run errands mid-day or in the evening when the stores are less crowded. You can schedule doctor’s and dentist appointments in the middle of the day when they are more likely to have available times.

4. Being Free of Money Worries.

The fear of running out of money in retirement is still a hot topic on many retirement websites. Even though many retirees worry about outliving their retirement savings, there are still many others who feel financially secure.

While you are working, you enjoy a regular income from your job. Many people become accustomed to a high standard of living without much focus on spending. However, when you retire, the amount of money you have available will change. So, you have to adjust your spending habits accordingly.

It would be a smart idea to create a new retirement budget and monitor your finances together with your spouse. When both spouses understand their financial situation and agree upon boundaries, there is no conflict over money.

Helpful articles:

5. Time to Travel the World.

Everyone has a different idea of their dream retirement. Some people anticipate years of travel and adventure, while others are envisioning staying home and relaxing or gardening and playing golf.

However, the most common retirement dream is to travel the world.

Retirement is the time in life when people decide they are finally ready and able to travel. With more free time and often more financial freedom it is easy to start exploring the world and live a more adventurous lifestyle. People like to make a retirement bucket list with the destinations they want to explore and things they want to do in retirement.

Helpful articles:

6. Time to Explore New Activities.

During working years, you have limited time for activities you truly enjoy. But after you retire, you will have much more time to spend on interests that bring you a sense of fulfillment.

Sitting on a couch and watching Netflix will not fit the profile of a dream retirement.

The happiest retirees know how to stay active and engage in hobbies and activities on a regular basis. It does not really matter what your hobbies and activities are. It might be hiking, swimming, or biking. It might be painting, playing a guitar, or photography.

The one thing that matters is that you feel passionate about your interests, and you make them a part of your daily routine.

After you retire, you will have more time to read and learn. You will have time to take classes, visit museums and art galleries, or read and learn new things. Best of all, you can explore the topics that truly interest you. And you can take courses or classes and not have to worry about being graded.

And whether you prefer hiking, biking, going to the gym, or playing golf, you can do it on weekdays when the crowds are lighter. You have more flexibility to adjust your schedule when you are not working.

7. Quality Time With Loved Ones.

While you work, you and your spouse have limited amounts of time to spend together, especially if you have children.

After you retire, you are going to be around each other most of the time. This may require some adjustments. You will probably need to work together to design a daily routine that satisfies both of you.

Also, you may need to find common ground on how much you will spend together and apart. You will probably discover there are some things you enjoy doing together and others you do not. You should agree upon how much time you will allow each other to enjoy your personal interests.

But it is so easy to take your time together for granted. At least once a month treat yourself to a special night out or share an activity that you both enjoy.

Spending time with their grandchildren is on the agenda for many retirees. They wanted to make up for the lost time with their grandkids because they were too busy working.

Also, many did not have enough time to enjoy the young years of their own children due to their jobs and busy schedules. Thus, they are looking forward to retirement as the time to spend more time with the family.

Having the time to be available for family members when they need help is what people love about retirement.

Takeaway

You may be surprised at how many of your friends will comment that you look happier and more relaxed after you retire.

While it is true that retirement brings some challenges, your life will change in many ways. But overall, retirement represents a wonderful chapter of personal freedom, relaxation, and fulfillment. Go ahead and look forward to the benefits and opportunities that will be yours when you have control over your life and your time.

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7 Steps to Get Emotionally Ready for Retirement

by Maggie Leave a Comment

man works on a laptop-emotionally ready for retirement

People often feel overwhelmed by the idea of retirement. That can lead to putting off thinking and planning for their next phase of life.

Even those who feel excited about retiring can often experience anxiety if they do not have a plan to help them make a transition. Others struggle because their jobs are a part of their identity. And it gives them a sense of purpose and a feeling of belonging.

While we cannot predict the emotional impact of leaving the job and becoming a retiree, we can take steps and prepare ourselves mentally and financially for our next phase of life.

Step 1. Start preparing in advance.

Every life change or transition comes with emotional discomfort.

A lot of retirees only prepare for retirement financially. They are not aware of the emotional impact retirement can have on their lives. Preparing early is the best way to be ready mentally and emotionally.

Getting ready for retirement may be challenging at first, especially if you like your old routine and do not know what to do instead. But accepting that it is the next chapter of your life earlier can help you get ready better.

How soon you should start preparing for retirement? The time frame can be different for everyone.

You should begin making plans once you decide that you are ready for retirement. Keep in mind that preparing for a major life change for most people cannot be done within one week, or even one month. It is best to start preparing yourself mentally within 1-5 years before retirement.

Begin envisioning what you want your retirement to look like in about 5 years. Some people may want to keep working part-time. Some would prefer to volunteer or start their own enterprise. Many others would prefer to travel and explore the world.

Step 2. Personalize Your Plan.

Retirement is a huge transition. A big part of successfully transitioning to retirement is preparing yourself mentally for the emotions you will fill.

Knowing what to expect and planning things ahead of time will be a cushion as you transition from one way of life to another. Going from 40 hours working life to having all the time in the world does not happen overnight. It will be a transition. Make sure that you know what you want to do in retirement.

Hone your vision and create a detailed list of things that you really want from it. Some people will be happy to have no schedule and just sit back and go with the flow. Others need to have goals, commitments, and obligations to fill their days. Focus on what works best for you. Create opportunities that align with your needs.

Creating a retirement bucket list can be helpful to have goals and ideas so you can make the most out of your golden years.

5 Reasons Why You Should Have a Retirement Bucket List

Step 3. Check your finances.

Finances are one of the biggest factors when you mentally prepare for retirement. Going from earning a steady paycheck to living off your retirement savings takes a big mental adjustment.

Be realistic. Make sure you have a retirement plan that fits your financial situation. And that includes having a retirement budget plan for your dreams, activities, and projects.

One of the best things you can do to prepare for retirement is to reduce your expenses. Reducing your expenses before retirement helps you free money to pay off any kind of debt and mortgage or add to your savings right now.

Some simple ways to reduce your expenses include cooking more food at home and eating out less, cutting your cable bill by using streaming services, switching insurance providers, and more.

If you want to make sure that your finances are fit for retirement, get a realistic sense of what you will be spending in retirement.

The best advice is to create an estimated retirement budget based on your current and future expenses. You might have a general idea of what you are spending now. But you will be better prepared financially for retirement if you have a clear picture of your expenses now and how that might change in the future.

Your emotional and financial plans should be in sync. And if you want to have enough money in retirement, make sure your lifestyle matches your budget.

Step 4. Replace work routines with new routines.

One of the most common challenges in retirement is adjusting to the lack of structure that comes with not having a regular job. It may sound like a paradise but in reality, it can lead to boredom, loneliness, and even depression.

To be mentally prepared for your retirement think about how you want to replace your work routines. Our work gives us a purpose, identity, and steady routine. Many retirees go restless or feel lost when they go from a full schedule to an empty calendar.

Suddenly, you have a lot of free time on your hands. The loss of structure and routine in life can bring a sense of isolation and sadness. You need to find a replacement for your work routines. The transition from a structured work schedule to a more unrestricted one can be difficult to navigate. It will leave you feeling uncertain about what to do next.

Having a routine in retirement definitely has benefits. But how do you build that routine? The simplest way is to visualize what your ideal week would look like and then plan accordingly. Think about the activities that bring you joy, such as social activities, interests, and hobbies. And then schedule them into your week. Do not be afraid to stop and try something else if a routine or habit is not working for you.

A few ideas to add to your retirement routine:

Create an exercise routine.
Create a grocery shopping and meal planning routine.
Create a routine for social connections and socializing.
Set aside time for learning something new.
Join a group or club.
Try something new each week.

Step 5. Discover your new purpose in life.

Living a purposeful life can help you feel satisfied and content with your own life. This gives you a reason to look forward to each new day.

What most of us do not often realize is that the sense of purpose relates to our jobs and the many demands through our working years. This might have included raising a family, buying a house, paying off the mortgage, and more.

Retirement changes everything. Some new retirees feel a loss of purpose after leaving work. Their jobs provided structure, stability, and a reason to get moving each day. Those extra 40+ hours a week are not always easy to fill. Find a purpose in your retirement life becomes of paramount significance.

So, how to find a new purpose in life? Think about how to refocus your life by writing down your interests and things you want to do in retirement.

Many people find their purpose in doing meaningful work like being a volunteer while others might find that their purpose is to help family and friends. Some people find their purpose is going away on a spiritual journey or helping others on a similar path.

Think about who you want to be in retirement and ask yourself:

What special talents or interests do I have?
Do I have a dream that I want to pursue?
What do I want to achieve?
What skills I can use to benefit other people?
Do I like to work at something I am used to, or would I prefer to face new challenges?
What would I regret not doing if I die?

As you gather your thoughts answering those questions, you can begin to outline what your new purpose in life might be. Look at retirement as a time for exploring, developing new skills, and trying out new interests and activities.

Step 6. Discuss your plans with your spouse.

Many couples assume they share the same vision about their life in retirement without talking about it. But if you and your spouse or partner have different ideas, this can lead to conflicts and disappointment because you are not on the same page anymore.

Just like everything else in life, communication is critical here. It is important to discuss your plans and dreams with each other. The worst thing you can do is not share your plans until you are ready to retire.

Maybe your spouse does not want to retire at the same time as you. Or perhaps you want to move closer to your children and grandchildren, but your spouse has another plan in mind. Keep each other in a loop about your plans. Start this conversation as early as possible so you are all on the same page.

Another topic to discuss with your spouse or partner is how to manage matters at home. You need to talk about how to handle household activities.

If you are retiring together, you need to discuss how to handle alone time and together time. If you are the only one retiring, the transition can be tough because the roles are changing once you retire. Your spouse needs to get used to the fact that you spend more time at home. Also, you might be expected to do more household activities than you anticipated.

Step 7. Take time to process and adjust your emotions.

As I mentioned multiple times in this article, retirement is a major life change and a long process. Give yourself time to adjust to the new situation. Prepare yourself emotionally for the adjustment.

Accept that you will be sad for a little bit after retiring. Then make some plans to make yourself busy again and get comfortable in your new life.

Many people try to rush into other activities to escape from their real feelings of sadness. This can bounce back to you. Have realistic expectations. Make a list of what you can reasonably expect to do in the first weeks and months of retirement. Try not to stack your list with too many things to do. Remind yourself that you are allowed to adjust. Take it easy on yourself.

Retirement is a huge milestone in your life. Celebrate the beginning of it to make it memorable.

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Moving Abroad for Retirement – The Pros and Cons

by Maggie Leave a Comment

Temple in Japan - moving abroad for retirement

Moving abroad can be a great adventure and an exciting way to spend retiring years. For those looking for adventure, retiring abroad can also open new possibilities for traveling to different places.

Of course, moving abroad for retirement is not for everyone. First, you and your spouse have to have a sense of adventure. Then, you have to make a lot of decisions before leaving the US including how to live on a fixed budget and how to communicate with your family and friends who still live in the US. Also, you need to create a wish list of everything you would like to see in your new place.

There is a chance that you may want to come back to the US after a few years of living abroad. In this case, you will need to figure out where to live, and how to get your documentation and health insurance in order.

Many people dream of moving abroad after they retire. However, moving abroad is a big step and there are lots of things you need to consider first, especially when it comes to your finances.

In this article we will look at the pros and cons of moving abroad for retirement.

The Pros of Retiring Abroad.

Retiring abroad is an adventure.

Many retirees choose to move abroad simply because of the experience of it. Everything feels new and exciting, like a fresh start in life. It is an adventure.

Living in a new country can allow you to experience a different way of life. If you are looking for adventure, retiring abroad can open the possibility of traveling to different places, learning about new cultures, food and lifestyle, and simply meeting new people.

When you live in your home country, it is easy to get into a routine and stick with it for years. But moving to a new country and living an adventurous lifestyle will make your life feel more fulfilling.

Lower cost of living.

It is not a secret that many retirees choose to move abroad to take advantage of a low cost of living. Many people find that living abroad allows them to get more out of their retirement savings. But depending on where you go, some foreign locations can have a higher cost of living.

For example, in many countries, you can live a comfortable middle-class lifestyle for less than $2000 per month. This budget includes rent for a decent apartment ($700 per month), public transportation, entertainment, and $20 basic meals at the restaurant.

You can get by on this budget in many countries throughout Southeast Asia, Central and South America, and Eastern Europe. A few popular destinations for expats on a tight budget include Cambodia, Thailand, Vietnam, Indonesia, Colombia, Peru, Ecuador, Mexico, Georgia, Armenia, Romania, and Montenegro.

You get to learn a new language.

It is nearly impossible to learn a new language without immersing yourself in the new culture.

By moving abroad, you put yourself in the perfect situation to learn the local language. You can learn the basics of a new language by taking some classes once you arrive. To achieve fluency, you can practice with your new local friends, read books or local newspapers. Even if you put in zero effort, you will still pick up a decent amount of the local language out of necessity.

Another option is to start learning a new language before you relocate by using apps, books, and online resources. One of the most popular language learning resources for free is Duolingo.

You get to experience a new culture.

One of the best parts of living abroad is to experience a new culture. You will learn about how other people live. Additionally, you will expand your horizons and learn about the world.

Culture is a broad term. Food and language, art and architecture, traditions, values, and social habits are all considered culture. The best way to experience a foreign country’s culture is to go and live in it. Who knows, you may even absorb some elements of the local culture into your new life.

You will travel and explore new places.

One of the best parts of moving to a foreign country is the ability to travel around the region you moved in.

Living in a new country will give an opportunity to explore and experience a different way of life. You can find yourself living in an area with a slower pace of life. Also, you may find yourself living closer to the sea, mountains, or other outdoor areas that are perfect for exploring. It can be a great way to enjoy a new way of life and explore the world.

woman at the cafe table - moving abroad for retirement

You might find that retiring abroad will offer you a chance to live your life to the fullest. When you look back years later, you might find that your time living abroad was one of the most memorable times of your life.

You will meet new people and make new friends.

It can be easier to make new friends while living abroad than in your home country, especially if you are older. Because you will be part of the expat community when you move abroad.

Many cities have large established expat communities. In the expat community, you will meet new people and you have a good chance of making friends with fellow expats.

You get to simplify your life.

When most retirees move abroad, they do not take with them all their furniture, cars, clothes, and other belongings. Retiring abroad forces you to simplify your life.

Chances are, you will find you need less stuff than you had before. Some people get rid of everything and travel only with a few suitcases and a backpack. Many people prefer to get rid of the old stuff they have accumulated over the years. Getting rid of your old clothes, furniture, knick-knacks, and other belongings often takes off the weight of your shoulder.

You get access to better healthcare.

When you get to retiring age, the quality of healthcare is one of the first things you think about.

Keep in mind that your US health insurance won’t cover you outside of the United States. Medicare generally will not work overseas. Hence, when planning how to pay for your medical care as a retiree in a foreign country, you have to choose from three options:

You can purchase a local insurance policy.
You can invest in an international insurance policy.
Also, you can choose to opt out of medical insurance and set up an emergency medical fund.

Still, most retirees do not feel comfortable having no medical insurance. When you are retiring abroad you want to ensure to have access to the best care possible at reasonable prices you can afford.

In some places overseas, healthcare can be free. The catch is you must be a legal resident. The further catch is that the available free health care services may not be up to a standard you will be comfortable with. However, there are still countries in Latin, Central America, and Europe with excellent and affordable healthcare services.

6 Best Countries in the World for Expat Healthcare

The Cons of Retiring Abroad.

Missing family and friends.

Moving abroad can be a great adventure and an exciting way to spend retiring years. But moving away from home can be a difficult challenge. It can become lonely. You will feel homesick and miss your friends and family while living abroad.

Depending on your location it might be expensive to fly back and forth between countries. Eventually, your relationship will suffer. You will miss the major life events of your friends and family. You will also miss out on spending holidays, birthdays, and weekend getaways together. All of it might hurt your relationships. Chances are, you will slowly drift apart from some of your friends and family if you do not see them regularly.

Moving abroad is expensive.

Many retirees move abroad to cut their expenses. But depending on where you go, moving to another country can be expensive.

First, you have to rent or buy property. It comes with the costs of associated fees for local lawyers and translators. And then there is the cost of moving your furniture and personal belongings to another country – transporting a shipping container generally costs thousands of dollars. In addition to that, you will have to pay for visas or residency permits, taxes, currency exchange, and family visits.

If you want to see your family at least once a year, you have to fly them to the continent you are living on. You might have to budget $1,500 – $2,000 (or more) per year for air tickets. If you are on a tight budget and you want to see your family more often, consider choosing a nearby country.

It would be more affordable to move to Mexico, Central or South America instead of Europe or Asia. Flights home will cost much less.

The language barrier.

It can be overwhelming if you decide to move to a non-English-speaking country. Eventually, you will need to learn to speak at least a little of a new language.

Not being able to speak a local language and communicate freely will make your day-to-day life more difficult. Everything becomes a struggle. Tasks like renting an apartment, opening a bank account, shopping at the grocery store, or renting a car will be a hassle.

Another problem is that some languages can be incredibly difficult and time-consuming to learn. Specifically, when you are older. It might take at least a year or two for you to become comfortable speaking a new language. And much longer to become fluent. Some languages are easier to learn than others. As an English speaker, you will probably pick up Spanish, German, or French faster than Chinese or Arabic.

If you do not want to learn a new language you should choose your new home in a country where English is an official language, spoken everywhere.

Culture shock.

Some cultures are harder to understand and integrate than others. You will be immersed in a culture that is not your own. It can take some time to get used to it.

Everything from local customs to day-to-day interactions may feel strange and unfamiliar at first. But then with time and patience, you will eventually grow accustomed to it.

It can be difficult to integrate.

As a foreigner, who does not speak the local language yet, you may find it difficult to make local friends and fully integrate into local culture.

Locals socialize and work with other locals. They often have circles of friends that span decades. Also, they prefer to spend a lot of their time with their family. That is why learning a local language is essential. It will help you talk to your neighbors, make new friends, and assimilate into the new culture.

If you are looking for some ideas for your retirement destination, read this article:

The World’s Best Places to Retire

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Are You Thinking About Retiring Abroad?

by Maggie 2 Comments

man an woman walking - moving abroad in retirement

Most Americans prefer to retire in the US, but some adventurous baby boomers are looking for ways to retire abroad. According to a study by International Living magazine in 2023, Americans are moving abroad to spend less money and live healthier and happier lives.

If this sounds like you, you probably have many questions about retiring to another country. What are the best countries to retire in? How can I find good quality healthcare? How will I learn the language? Do I have to pay taxes?

The good news is that there are thousands of retirees who have already moved to a new country. So, there is tons of information available on where and how to retire abroad.

Why retire abroad?

There are a few big motivators for retiring abroad. First is the sense of adventure. Living in a new country can be an exciting experience, giving you an opportunity to broaden your horizon, learn about new cultures, try new food, or simply have a fresh start in life.

Another big reason to retire outside of the US is that many baby boomers didn’t save enough for retirement or their retirement nest egg lost value and never recovered.

These are financial realities for a growing number of baby boomers who are hitting 65 without enough money stashed away to maintain their standard of living. The number of retirees who draw Social Security outside of the US is growing every year.

How to choose where to go?

Typically, when people start their research on where they would like to live, they often consider places where they had an amazing vacation. But vacations and reality often clash.

A beach town might seem like a perfect location for a holiday. However, once you decide to relocate issues like climate change, frequent flooding, and hurricane season become much more of a consideration.

The best advice is to make a list of priorities and what is most important for you to have in a new place.

One helpful tool is an International Living magazine thorough survey of ‘where to retire’. Annual Global Retirement Index is a study that incorporates several different factors including affordable housing, quality healthcare, safety, political stability, weather, and more.

The World’s Best Places to Retire in 2023

Once you decide where you would like to retire you will need to start looking at residency requirements, visas, healthcare, and how taxes work.

Establish residency.

Every country has its own residency requirements, such as providing a certain amount of annual or monthly income, showing substantial savings, or even purchasing real estate.

There is a difference between temporary residency, long-term residency, and permanent residency.

Keep in mind that establishing permanent residency in a foreign country does not necessarily means citizenship. In some countries, permanent residency leads to access to public healthcare and permits to work. But you cannot vote in an election or get a passport.

Several countries offer ancestry citizenship to those who can prove that they have ancestors who were citizens of that country. Ancestry law varies from country to country, but do not underestimate the value of the second passport. If you get one in a European country, you will have access to free healthcare and even send your kids to college for free.

EU Citizenship Through Ancestry

Learn about visa requirements.

Visa requirements vary from country to country. But if you are retired and do not need to work, those kinds of visas associated with retirement (non-working visas) are relatively easy to obtain.

For example, if you want to move to Portugal, you will need to apply for the country’s popular D7 visa. It’s also known as Retirement Visa or Passive Income Visa. This type of visa means you have to prove that you can support yourself without working. First, you will obtain a temporary resident visa. Then after a few years, you can apply for a permanent residency visa, which allows you to travel through the EU like a citizen.

Keep in mind that qualifications for each type of visa typically include a background check, proof of income, and proof of international health insurance (you can switch over to a country’s health insurance after you obtain residency). Additionally, in some cases, you need to open a local bank account and have proof of local accommodation.

Here is a helpful guide to a List of Countries with Retirement Visa

Pay your taxes.

Many people do not realize that there are requirements for reporting your income even though you live in another country. This is much easier to plan upfront than to deal with after the fact.

As a US citizen, you are always required to pay taxes even if you have retired in another country. You will still have to file an income tax return with the IRS and will have to declare any money withdrawn from your retirement accounts.

Keep in mind that pre-tax retirement plans such as 401(k) and IRA, retirement pensions and often Social Security benefits are incomes that remain taxable.

Organize your assets.

If you are planning to retire abroad, you have to think about how to organize your assets. You don’t need to move your assets with you. Your stocks and bonds portfolio, your annuity, and retirement accounts such as 401(k), IRA, and Roth IRA, can remain in the US.

To cover your day-to-day expenses, you can open a local bank account to accept regular transfers from your US account and pay bills.

Also, you can open an online banking account which makes it easier to manage your money while living abroad. It makes more sense to apply for a direct deposit from Social Security than wait for a check mailed abroad. Online banking may prevent currency change or check-cashing fees.

Major credit cards such as Visa, Master Card, and American Express are accepted in many locations around the world. In many cases, it will be easier to use credit cards to cover your daily expenses and purchases.

But if you decide to move your assets abroad, you need to work with your account or tax attorney to find out how your assets will be taxed.

If you choose to move to a high-tax country like France or Switzerland, your expat life can cost you more than expected due to high taxes. On top of local taxes, you may be taxed in your home country as well. Thus, before making the move, it is a good idea to investigate the tax laws of your new country to get an idea of what you will be paying for.

Think about healthcare.

When you reach your retirement age, healthcare is one of the first things you think about. The fact is the US has one of the most expensive healthcare in the world. By retiring abroad, you can save thousands of dollars and still receive the greatest healthcare service possible.

As of 2023, South Korea, Taiwan, Denmark, Austria, Japan, Australia, France, Spain, Belgium, and the United Kingdom made the list of the 10 best healthcare countries in the world.

Keep in mind that if Social Security will follow you as you travel, Medicare coverage will not because it is extremely limited outside of the US.

Depending on where you plan to live, you may find international or American insurance companies that sell health insurance to foreign visitors. Similarly, depending on your new country, you may find that healthcare is affordable, and you do not need to buy additional insurance. If not, find out what coverage you will have as a visitor and plan accordingly.

6 Best Countries for Expats Healthcare in 2023

Connect with others.

When you have decided which country you want to move to, consider the expat community that you will likely be part of. Many cities have large established expat communities with regular expat meeting groups. On another hand, some cities have small tight-knit expat communities made up of just a handful of people.

Chances are, you will want to be a part of the expat community. This can be a good thing and a bad thing. Some of these communities are better than others. But it can be easier to make friends if you join an expat community.

Just do Google search for “expats+ your new city name” and you will find one. Also, it is not a bad thing to check out various websites where the global community of expats has answers to your questions and is willing and able to assist.

My favorite website is Expat.com where you can learn more about housing, health insurance, places to eat and visit, and more. There are also private Facebook groups that cater to retirees abroad including Retired or Thinking Retirement?

At the same time, you will get more from your time abroad if you take the time to learn the local language and then make friends with locals. There are tons of free tools out there to help you learn your chosen language.

For example, I am a huge fan of the Duolingo.com website which offers free language lessons in French, Spanish, Italian, German, Portuguese, and more. In addition, you will probably be surprised by how many local people speak English.

Final Thoughts

Retiring abroad has become very popular in recent years. If you are a retiree, it will offer you a unique opportunity to explore the world, expand your horizon and experience a new way of life. Whether you are looking for a warm climate and beautiful scenery or want to explore a new culture and learn a new language, retiring abroad has its own benefits.

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