When planning for retirement, one of the most crucial decisions you’ll have to make is where to live. That will affect everything else, including your living expenses, taxes, access to healthcare, ability to visit loved ones, and overall quality of life. Retiring in another country can offer opportunities that aren’t available in the United States, as well as unique challenges.
Affordability
Where you live will impact how much you’ll spend on housing, food, healthcare, and other essentials. In many countries, those necessities cost much less than they do in the United States.
The U.S. government taxes citizens’ incomes regardless of where they reside. In some cases, you might also have to pay taxes to the government of the country where you retire.
Change of Pace
If you move to another country, your routine will change a lot. You’ll be immersed in a different culture, and you might have to learn a new language. In some parts of the world, you might face concerns about political or economic instability, or the infrastructure and amenities might not meet the standards that you’re used to in the U.S.
Many people find retirement dull and crave new experiences, while others are creatures of habit and find it hard to adjust to change. You’ll have to consider your personality, as well as the characteristics of a specific location, to figure out how much change you’d be comfortable with.
Potential for Loneliness and Isolation
If all your family and friends live in the United States, you might not get to see them as much if you retire abroad. If you move to an area with reliable internet service, technology can help you stay connected, but it won’t be the same as spending time together in person.
Retiring abroad doesn’t necessarily mean that you’d be lonely. It might give you an opportunity to reconnect with family or friends you haven’t seen in years or a chance to make a new group of friends.
Legal Issues
Moving abroad might be complicated from a legal standpoint. Some countries want to attract retirees from other parts of the world and make the process of obtaining a visa as easy as possible, while other nations are less welcoming and have more restrictions.
Try Life Abroad before You Commit
It’s hard to imagine what it would be like to live in another country. An area where you enjoyed spending a week or two on vacation might not be a place where you would enjoy living.
Consider moving abroad and trying it out for a while before deciding whether to make the change permanent. Renting a home for several months can give you an opportunity to learn more about the language, culture, food, daily routine, government, transportation system, and amenities. Once you understand what life is really like in the country, you’ll be able to make an informed decision about where to spend the rest of your retirement.
