A growing number of international citizens are contemplating the
concept of taking early retirement, escaping the hectic monotony of the
daily grind and retiring abroad in a low cost location to make the most
of their retirement savings.
If you'd like to live overseas to escape the high costs of living
associated with countries such as American and Britain for example,
this is a guide to planning your retirement abroad so that you don't
run out of money, you don't run out of friends and you never lose your
adventurous spirit.
When contemplating retirement the majority of us seem pre-programmed to
only consider the far reaching financial implications of never bringing
in an income again! But the fact of the matter is that there are
many more things to consider if planning on retiring abroad, not to
mention the fact that many retirees overseas pick up odd jobs and part
time positions advising and assisting other expatriates with their
lives and businesses anyway!
However, as the financial implications of retirement are uppermost in our minds let's tackle that subject first: -
By retiring overseas in a low cost country such as Mexico, North Cyprus
or Belize for example, retirement money simply goes far further.
Taxes on property and income are far lower in many overseas countries,
property prices are amazingly affordable in plenty of emerging
destinations, and the abundance and quality of fresh produce in many
sun-blessed and affordable retreats means that day to day living costs
are quite simply reduced.
There are considerations that those moving to less well developed but
cheaper countries should bear in mind though - such as affording a
decent level of health care cover – but in a country such as Northern
Cyprus for example the cost of receiving quality medical treatment is
so low that an insurance policy's excess is usually higher than the
amount having to be paid out anyway!
It's important to research a preferred destination to discover the true
cost of living there as well as the likely realities of daily life, and
researching all options and alternatives is an absolute must for those
planning an overseas retirement before making a firm commitment to
retire abroad to any particular affordable haven.
Other than the financial implications there are a number of social
considerations that those planning on retiring abroad should think long
and hard about. By moving physically away from friends and
family, homesickness and longing for familiarity can be intensified
which can make it harder to settle in abroad. This feeling of
displacement is entirely natural and will be experienced to a lesser or
greater extent by all those who move abroad - but it is a feeling that
can be overcome by making an effort to meet new friends and establish
new bonds with people – which means that sociable types who find it
easy to make friends and acquaintances will find it far easier to
retire abroad.
Those with a tolerance for alternative cultures and values will also
find it easier to settle in an unfamiliar country where things are
quite simply 'done differently'! Those who are resistant to
change and who plan on living abroad in an expatriate community where
they hope to be surrounded by familiarity will still have to encounter
local people and accept local values, therefore such people should
really think seriously about whether they can adapt to a totally new
way of life. If they feel they cannot then they will be wasting
precious resources moving abroad only to discover that they hate it and
have to return home!
This brings me on to my final point – having a Plan B! Sometimes
people retire abroad and for one reason or another they cannot settle
and wish to move on or move 'back home', alternatively some unlucky
people are forced to return home as a result of a change in
circumstances. Therefore it is always important to have at least
the rudimentary workings of an exit strategy or a plan B in mind.
If possible squirrel away a little money so that if the worst comes to
the worst you always have a way out or a way back home - even though
statistics show that the majority of those who retire abroad in an
affordable and sun kissed location love every minute of their life and
never want to change it!
Rhiannon Williamson writes about retiring abroad,
living in North
Cyprus and being an expatriate in many different countries
around the world. To read more about
living in North
Cyprus click here.
tweet this!