How to Retire Abroad: Tips for Senior Expats
You can find more informative resources like this on the Ted McLyman blog.
Are you planning on retiring abroad? Whether you’re looking for warmer weather, a lower cost of living, or an exciting change of pace, retiring in another country could be a great way to spend your golden years. Of course, retiring as an expat can be complicated since you’ll have to navigate retirement planning in both your home country and your destination. To help you plan ahead and ensure financial stability through your golden years, here are some important things to consider.
Supporting Loved Ones Back Home
If family members rely on you for financial support, packing up and leaving your home country for lengthy periods of time can feel impossible. Thankfully, technology has made it easier to send money overseas without the steep costs and delays associated with sending a bank transfer. For example, if you need to send money to family in Quezon City, a service like Remitly can safely transfer funds to the Philippines from the U.S. in a matter of hours with a maximum charge of $3.99 when you choose to convert dollars to pesos.
Budgeting and Financial Planning
Budgeting for retirement is important, whether or not you’re moving somewhere with a lower cost of living than your current country. Wherever you end up, retirement likely means living on a fixed income. If you want to get the most out of your golden years, you will have to do some careful budgeting. You may even want to pick up remote work for extra pocket money. From freelancing to securing a remote job based in your home country, there are countless ways to make money online when you’re living overseas.
Unfortunately, getting older often comes with higher healthcare bills. Make sure you account for these added costs when you’re drawing up your retirement budget. It’s also important to remember that health insurance from your home country may not provide cover while you’re living abroad. For example, Americans planning on retiring overseas will need to find a way to replace their Medicare benefits at their new destination. U.S. News explains that international medical insurance is the safest and more reliable option, but you could also opt for local insurance if you’re looking for a more affordable alternative.
Pension and Social Security
Many American citizens rely on Social Security payments during retirement. Thankfully, you should be able to continue receiving payments while living in other countries. According to The Balance, you won’t be able to receive Social Security payments in certain countries, including Cuba and North Korea. It’s important to do your research before committing to your big move.
Thank you for your kind consideration!