Retirement is a time of significant change in an individual's life when he or she leaves the workforce to pursue other interests.Retiring abroad and living in a foreign country can be appealing to a lot of people.It will take a lot of planning to get to this path.Taking residency, taxation, and healthcare concerns into account is what you will need to choose a country to live in.
Step 1: You have to calculate how much you have left over.
You need to calculate finances prior to moving abroad.You can break down projected monthly income by how much you will receive from a retirement annuity, as well as any income you have from pensions, Social Security, and investments.If you worry that you won't have enough money to live comfortably abroad, you could take a part-time job in the country you retire to.You may be surprised at the value of your native currency in countries you are considering moving to.
Step 2: Medicare should not be counted on to be received abroad.
You can receive Medicare in the United States if you are an American senior over the age of 65.If you retire abroad, Medicare benefits do not apply, so you won't be able to use this resource.Seniors who are considering retiring abroad initially before returning to the United States for their final years will be able to receive Medicare, but will have a premium 10% higher for every 12-month period they were not Enrolled.Other senior financial programs don't require you to live in the United States.If you retire abroad, Social Security will continue to pay your annuity.The Social Security Office of Earnings and International Operations can confirm this.
Step 3: Local medical care costs can be researched.
Seniors without the benefit of Medicare have three primary options when it comes to health care after retirement.Seniors can purchase an international health insurance policy, purchase a health policy in the country they retire to, or pay for all health-care expenses out of pocket.Many foreign countries have relatively inexpensive health care, so you may be able to save money by not purchasing health insurance.You won't need to worry about health insurance in nations with socialized health care.
Step 4: If you want to establish residency, look at it.
Residency within the country you move to is required if you will be living as an expatriate permanently.It is a factor that can influence your choice of retirement destination.Some countries only require that you own property to be eligible for residency.You have to earn a certain amount of money a month to become a resident.Panama requires retired seniors to have a monthly income of $1,000 in order to qualify for residency.A similar type of plan requires an income of at least $600 a month for each of the countries.Immigrants who are willing to make a financial investment in the nation can get residency in some countries.
Step 5: Consider living part time.
If you plan to retire to a country that has a residency policy that requires you to earn a monthly income, you can only retire part-time.You would live in your native country for the remainder of the year and live abroad for a portion of it.It allows you to remain in your native country while still being able to spend time abroad.
Step 6: You should apply for a permanent residence visa.
Senior-age retirees may be required to obtain a residence visa by a foreign government.Similar to other types of visa, this document gives you legal permission to reside in a country that you have to emigrate to.For a short period of time, residence visas are given.Two years can be extended as needed.If you are considering retiring to a nation that has a residence visa policy, be sure to check with the State Department.Some countries have more stringent requirements than others.Visitors are not required to hold a visa in some nations.
Step 7: Double taxation is not advisable abroad.
Regardless of where you retire to, you still have to pay income tax in the US.When American retirees find out that their new residency status doesn't result in lower taxes, they are disappointed.It is necessary to avoid being taxed by the American government and a foreign government.Mexico or Canada have a tax treaty with the US that prohibits double taxation.Even if you give up your American citizenship, the U.S. government still requires you to pay income tax.Retirees from other countries will be taxed by their native governments and will need to contact their nation's State Department for further information.
Step 8: Discuss the decision with family.
If you have siblings or children you would like to stay in touch with, you may want to seek the approval of your family before moving abroad.Retiring abroad can be isolating for you and your partner, and it is important to have the support of family members and close friends.If you haven't traveled abroad before, moving from a familiar culture to a foreign one can be difficult.Prepare yourself for this culture shock by making smaller trips in advance of your retirement, and reading as much as possible about the culture you will be retiring into.
Step 9: There is a country with pleasant weather.
Mild, warm weather is a part of comfortable living for many retirees.The Caribbean has warm summers, mild winters, and miles of sandy coast, which is why many expatriate retirees move there.Low healthcare expenses and a pleasant climate make Thailand a good place to live for North American expatriates.Valencia, Spain, where expatriates can find a decent sized apartment for around $400 a month, is one of the more affordable places to live in Western Europe.Foreign retirees can choose from a number of South American options with mild weather and friendly cultures.
Step 10: You should compare the costs of living in countries you are considering retirement to.
The location of expatriate retirees can be influenced by this decision.If you choose to retire to a nation with a lower cost of living and a financial exchange rate that will benefit your native currency, you can live comfortably on less money than you might need.Mexico has an exchange rate that favors the dollar.Panama has a low cost of living for American expatriates as well as other South American countries.Even if the cost of living in a foreign country is lower than at home, you will still have to pay for things like electricity, cell phone bills, and transportation.The factors could cost more abroad.
Step 11: You need to visit the country before moving there.
If you have never been to a country you are planning to retire to, this is important.You will be spending a lot of time in whichever country you choose after you retire.If you want to enjoy your retirement, you need to take a long trip to the country and investigate living in local communities.You can rent a small house or apartment in the country for 6 months if you want to get a feel for it.Continue with your plan to retire abroad if you still enjoy the country after that time.