Is Retiring in a Different Country a Good Option?
Spending your retirement in a different country as an expat is a strategy most people fail to consider. But, for some, living out their twilight years in their home country can be financially challenging. And contrary to many misconceptions, retiring abroad doesn’t have to be complex or difficult. All you need is proper planning to ensure that you’ve covered all the essentials, especially when it comes to managing your money, finding the right living arrangements, and making sure you can still participate in your civic duties such as voting.
Let’s focus on several critical topics most people think about when the idea of retiring abroad is put on the table.
Managing your finances
Retiring abroad shouldn’t be an impulse decision. You need at least a few years to plan your finances and avoid bumping into trouble later on. For TailorMade Pensions, it’s an excellent strategy to seek help from a financial expert. If you’re expecting to receive a pension, will the funds be enough to cover your living costs? Do you have any additional savings you could potentially use to invest? Of course, it also helps to understand whether choosing to live abroad will make you ineligible for state-funded retirement benefits. Typically, an international bank account works best since you can transact online anyway. Note that opening a local bank account may be quite tedious for an expat, so ensure that you explore all your options and mind all the restrictions and limitations that may apply.
Applying for residency
Applying for residency works differently in every country. What’s most important is to ensure you have all the necessary documents such as a marriage license, birth certificate, and other paperwork related to your finances. You can use online resources to get more information about the requirements in the country you want to live in. For example, in some countries, expats can apply for residency and at the same time be allowed to work. This may be an excellent option if you want something that will keep you busy, even in retirement.
Meeting medical needs
Your health and wellness should be a priority when living abroad. If you have specific medical needs, perhaps it would be best to look for a country with good healthcare. Research about the cost of medical insurance, as well as how much basic medical services would cost. Before leaving your home country, it also helps if you’ve already had a complete check-up completed. If you’re bringing any prescription medication abroad, make sure you have all the documents from your physician to prevent trouble at customs.
A suitable place to live
Adjusting to a new home is hard, which is why renting is perhaps the better option. As you become more accustomed to the new country’s lifestyle, you can think about buying a small home or apartment provided that local laws allow expats to own real estate or property. Staying in a hotel or in a short-term apartment rental for a few weeks will also help if you want to prepare all the documents you need for a long-term lease.