Five Places to Retire Overseas - What to Consider

This week we have a guest post from Corey Thompson, a Texas attorney who specializes in estate planning and Social Security Disability law.  The subject he chose to cover in his post was overseas retirement.  This is a very timely article because hundreds of thousands of Baby Boomers are enthusiastically exploring the possibility of moving to other countries when they retire.

Recently, a number of articles have been published on the topic of overseas retirement.  In addition to the information provided below by Mr. Thompson, retirees should consider a number of factors before deciding whether or not to move to another country.  These factors would include potential U.S. State Department travel warnings, your willingness to learn a new language (which can be extremely important in an emergency), and your flexibility.  You are not going to be able to perfectly recreate your current American lifestyle in another country.  Are you willing and able to accept that many things will be different and, in some cases, less convenient than you are accustomed to here?

Retirees who move abroad also need to be aware they cannot use Medicare while living in another country.  They will need to investigate whether they can buy insurance or pay to belong to the national healthcare system in the country where they want to live.  Finally, they will want to take an extended vacation in the country before committing to living there.  During that time, they will also want to talk to a Realtor, attorney and CPA in the other country to learn more about meeting local residency requirements, purchasing or leasing property, and paying taxes.

Below is the guest post by Corey Thompson

Five Places to Retire Overseas

As the American population ages, a growing number of Baby Boomers are retiring overseas.  The Associated Press reported that from 2010 to 2015, international retirement rates rose 17 percent.  There are now at least 400,000 seniors who have left the United States and retired overseas, usually in an effort to make their dollars stretch further.  Those figures are expected to rise in coming years. The countries with the most expats are Canada, Japan, Mexico, Germany and the United Kingdom.  These countries are all good choices for someone considering living abroad.

Factors to Consider When Retiring Internationally

"Live and Invest Overseas" has put together a list of thirty possible retirement destinations which they have ranked based on a number of factors, including:

*  Cost of living
*  Infrastructure
*  Healthcare
*  Entertainment/recreation
*  Expat community
*  English spoken
*  Climate
*  Real estate affordability
*  Taxes
*  Safety

Top Retirement Destinations

With the above factors taken into consideration, when I looked over the list of recommended spots, the ones I suggest retirees consider when relocating internationally are:

Portugal's Algarve Region

The Algarve Region is commonly referred to as the "old world region" of Portugal.  This location scored the highest in the safety and healthcare categories.  English is a widely spoken language.  Best of all, the Algarve Region is home to 42 golf courses and 100 miles of Atlantic Ocean coastline.  The rent for a two-bedroom apartment is about $720 per month.  If you're worried about citizenship, Portugal offers two plans.  The first plan is the "Gold Visa Program." This program allows you to purchase real estate in Portugal, with the contingency that you stay in the country at least one week every year.  The other plan is called "self-sufficiency residency."  To become a citizen under this plan, you must have an income of $1,300 a month and stay in Portugal for six months per year.  Since the average Social Security income of American retirees is a little over $1,300 a month, many retired Americans would be able to take advantage of this opportunity.

Valletta, Malta

Malta is a small, but beautiful country.  In order to obtain residency, you must rent a house or apartment.  Two-bedroom apartments usually rent for around $915 per month.  Malta is also know to have a vibrant nightlife.

Mazatlan, Mexico

Mexico is one of the aforementioned countries and is home to a growing number of American retirees.  Many people like Mexico because of its close proximity to the U.S., making it easy to frequently return and visit family and friends.  Mazatlan is a city located on the Pacific Coast of Mexico and features twenty miles of beaches.  It is also home to an international airport, fabulous street food, world-class fishing, and a tropical climate. (Note: It is particularly important to note that in recent years, some parts of Mexico have received an official Travel Warning from the U.S. State Department.  It is always wise to check the State Department website before visiting or moving to Mexico,as well as other countries, and before traveling around any country once you have moved there.)

Abruzzo, Italy

The Abruzzo Region of Italy has been called by many "the most overlooked and undervalued" landing spot for American retirees.  Abruzzo is located in central Italy and features a climate similar to the northern half of the United States ... hot in the summer and cold in the winter.  In Abruzzo, it is estimated you could live on about $1,400 a month, which is within the budget of many retirees dependent on Social Security.

Saint-Chinian, France

Saint-Chinian is the perfect city for wine lovers.  The city is located in Southern France and is particularly well-known for the variety of delicious local wines.  It is more expensive than the other places listed here, but you can still live there comfortably for about $2,000 a month.

Can You Leave International Properties In Your Estate Plan?

The simple answer to this question is yes, you can leave international properties in your estate, although, there are a number of issues which will factor into the decision to leave your foreign property in your estate. You must take into consideration the taxation, whether you will need a will in both the U.S and the foreign country, whether that country will honor a U.S will, or whether you need an international will. An additional factor which should be taken into consideration is whether you should leave the property in a trust. For more information, it is advisable to discuss your specific situation with an experienced estate planning attorney.  (Note: You may need both an American attorney and one in the country where you own property.)

More Thoughts on Moving Overseas

The list of international places to retire could be much longer, depending on a wide variety of factors.  At the end of the day, it is up to each person to determine what they are looking for in a retirement community.  If you love golf, then perhaps the Algarve Region of Portugal would be your dream retirement location.  If you are looking for a large expat community, Mazatlan in Mexico may have everything you desire.  What is my advice to you?  Decide what you want, then spend time finding a location which will best meet your needs.

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About the Author

Carey Thompson has been practicing Social Security Disability and estate planning law since 2008, after graduating from Texas Wesleyan School of Law, now known as Texas A&M School of Law in Fort Worth, TX.  While at Texas Wesleyan, he served on the Law Review.  Prior to attending Law School, Mr. Thompson was a high school band director for four years, using his degree in music education from Michigan State University.  He is a practicing attorney in Tarrant County, Texas.

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If you are interested in more information about retirement planning, where to retire in the U.S. and abroad, Social Security, Medicare, common health problems and more, use the tabs or pull down menu at the top of this blog to find links to hundreds of additional helpful articles.

Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, which is due to be released by Griffin Publishing in 2018.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  Google images photo of Portugal.

More Places to Retire Overseas

Baby Boomers are well-traveled and love new experiences.  As a result, many of them are giving serious consideration to retiring overseas.  Consequently, a number of different websites have produced their own lists of some of their favorite places to retire outside the United States.  In December, 2012, U.S. News published the list they had compiled.  All the locations on their list are fun, interesting places where you will not be lonely.  Most of them have thriving ex-patriot communities made up of retired Americans.  Below is the U.S. News list, along with some basic information and my personal impressions of each.

Where to Retire Overseas

Cuenca, Ecuador

Ecuador is considered one of the more affordable places for Americans to retire.  As I have mentioned before in this blog, some retired friends of ours were actually house-hunting in Ecuador when the wife was stricken by an unexpected brain aneurism.  The doctors and medical facilities in Ecuador were amazing, and she was able to receive life saving brain surgery there.  Of course, their plans to move to Ecuador were interrupted, and now they are back in the United States while she recuperates.

According to U.S. News, a retired couple could live in the charming colonial city of Cuenca for about $1,200 a month.  A small condo there can be purchased for as little as $40,000. This means that many Americans could pay cash for a nice condo in Ecuador by using the equity in their current home, and live comfortably on their Social Security benefits.  It was this affordability that first attracted our friends, as well as many other people.

Granada, Nicaragua

This is another charming city in Central America with an affordable cost of living and low real estate prices.  The government of Nicaragua has had a bad reputation in recent years, so many people may be reluctant to visit this area.  However, there is an ex-patriot community of Americans living in Granada, and most of them feel very comfortable living there. 

Cebu, Philippines

The island of Cebu is another popular and affordable real estate location.  Many members of the U.S. military have chosen to  retire here because they can live so well on their military retirement.  There are some restrictions on purchasing real estate in the Philippines, but it is still possible for Americans to purchase a condo.

One of the more interesting comments the U.S. News article made about the Philippines was that many American men in their 50's and 60's move there to find wives and start families!  That is the first time I have ever read that about a potential retirement location.

Medellin, Columbia

According to the U.S. News article, this South American city is safe and beautiful.  There are also large literary, artistic, industrial and financial communities in the city.  However, personally I was surprised to see Medellin on the list.  Isn't that the location of the Medellin drug cartel?  Before flying off to this city, I suggest that my readers check the State Department website to make sure there are no travel warnings for that location.  Currently, the State Department website says "security in Columbia has improved significantly in recent years ... but violence linked to narco-trafficking continues to affect some rural areas and parts of large cities."   Later, the website talks about the danger of both violent and petty crimes. 

This brings to mind the fact that we should all do our own research and use our own judgement before moving to another country, even if we see a location on a list from U.S. News or some other reputable news source.

New Zealand

I have known several friends who vacationed in New Zealand, and they always returned full of enthusiam for this dramatically beautiful country.  This is considered a good place to retire part-time, because it is so difficult to become a full-time resident.  However, you can stay for six months at a time, return to the U.S. to visit friends and family, and then return to New Zealand. 

Another option that U.S. News recommends is that you spend six months of the year in New Zealand and six months in another country, like Panama.  This would give you a perpetual summer.  It is an intriguing suggestion, although I think many Americans might want to spend at least part of each year back in their old neighborhoods in the U.S., especially if they have left family behind.  One advantage of New Zealand is that they speak English.

Puerto Vallarta, Mexico

My husband and I first traveled to Puerto Vallarta in the early 1970's.  Back then, a number of celebrities, including Elizabeth Taylor, had vacation homes in the town. We fell in love with this tropical paradise and have returned several times since then.  Unfortunately, the area has become more developed and more expensive since the 1970's.   While it is not as cheap as some of the other spots mentioned here, it is beautiful.  There are fabulous beaches, golf courses, restaurants, shopping, marinas and five star hotels with great entertainment venues. However, in recent years I have also heard reports of increased crime in the city. 

Samana, Dominican Republic

Are you hoping to enjoy a relaxed Caribbean retirement?   The Dominican Republic is one of the more popular Caribbean locations.  It is very affordable and real estate is less expensive than in many other Caribbean countries.

One of our daughters went on vacation there with some friends.  The trip was very inexpensive, and there were lots of fun things to do.  They found the country to be both relaxing and vibrant.  They felt comfortable and safe while they were there.  Of course, it never pays to get careless about your personal safety in any country.

Rural France

This U.S. News suggestion surprised me.  I have actually heard rural Spain mentioned more often as an interesting and affordable place for Americans to retire.  U.S. News admits that France is not a budget retirement choice.  However, my husband and I have traveled to France several times and loved it, and so have many other couples we know.  There is no question that there is plenty to do, although not everyone can afford to retire there.

Belize

I was delighted to learn from this article that Belize is one of the safest countries in the world.  It is a tiny country.  Although I have not been inside Belize, my husband and I have spent time on the Yucatan Peninsula of Mexico, just north of Belize, and were fascinated by the Mayan ruins and the mountainous jungles. It is an awe-inspiring part of the world.

Although it has been decades since our visit, I understand that most of that area has changed very little over the years.  There is no reason to feel lonely if you retire there. Ambergris Caye in Belize is home to a close-knit expat community of like-minded people.

Before You Move Overseas

If you are thinking about retiring to another country, there are certain things you need to take into consideration.  Not all of these countries have easy access to medical facilities.  Some of them have restrictions on your ability to buy real estate.  Other countries have restrictions on how long you can stay.

In addition, governments change and sometimes they may not always be friendly towards foreigners who have moved there.  As always, I suggest that my readers check the State Department website if they are visiting or moving to another country.  Pay attention to any warnings that may be issued.

Another issue you should consider is whether or not you will be happy living so far away from your current friends and loved ones.  While it may seem like an adventure at first, you may begin to feel lonely, especially if you lose your spouse.

However, if you are up for an adventure and you want to have the experience of living in another country, US News has provided us with a great list of potential countries.

Sources:

http://money.usnews.com/money/blogs/On-Retirement/2012/12/04/best-overseas-retirement-options-for-2013

http://travel.state.gov/travel/cis_pa_tw/cis/cis_1090.html

If you are trying to decide where to retire, you may also be interested in reading some of the other posts that have been written for this blog.  Links to all of them can be found in the index articles listed below.  In particular, you may be interested in checking out the articles in "Great Places for Boomers to Retire Overseas."

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

You are reading from the blog:  http://baby-boomer-retirement.blogspot.com

Photo of Ecuadorian art courtesy of http://www.morguefile.com