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
* Expat community
* English spoken
* Real estate affordability
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.
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.
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.)
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 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?
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.
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Photo credit: Google images photo of Portugal.