Retirement used to be the greatest goal most of the working class dreamed of. But, with the economy’s instability, it is difficult to stay confident that you will be fully enjoying all the benefits that retirement used to promise. This is perhaps why the idea of moving overseas after retirement has become a popular option nowadays.
In this article, we provide helpful tips on how you can move overseas if you are out of budget after retirement. These tips will also be useful to those who have ample retirement savings, but who wish to enjoy one last adventure abroad.
Calculate your total retirement income. A crucial first step when planning an overseas retirement is to know your total retirement income. This may come from your pensions, Social Security, inheritance, business, and investment earnings.
If you are still years away from your retirement and you find that your total retirement savings is not enough, you can easily save up for it. However, if you are already retired, you will need to work with what you have or come up with ways on how you can earn passive income from it. An example of a passive income stream for retirees is renting out their homes.
Prepare a budget plan. After calculating your retirement savings amount, it is time to prepare a budget plan for your time overseas. Note that this budget plan may change depending on your research and intended lifestyle choices in your new country of residence.
Different financial coaches will recommend retirees to withdraw different amounts or percentages from their retirement savings. So, make sure you get advice from a trusted financial adviser who knows your preferences and retirement portfolio well.
Sometimes, it is also best to see a physical representation of how your budget and spending plan will look like ahead of time. You can do this by using monthly budget sheets.
Research and/or take a short trip to the country you would like to retire in. Moving overseas after retirement is a major life decision that will affect your whole family. It is even more important if you still have younger children you wish to take to the new country with you. So, if you are still unsure whether you should fully move abroad or not, it may be best for you and your family to take a short trip to the country of your choice.
Of course, if you want to fully take advantage of your retirement, it is best to relocate to a country that has a low cost of living. Some examples are Thailand, Costa Rica, Argentina, and Spain.
Also, make sure to ask expats or immigrants about the new country before you finalize your move. They can provide invaluable advice since they have already lived in that place and can give you tips for your stay in the new country. Do not settle on one place right away---take your time to experience a country or town first before making your final decision.
Tip: You can use 30 60 90 Day Plan Templates as an outline of how the first three months of your trial overseas move will look like. A plan like this can help make you feel less overwhelmed by the prospect of moving abroad.
Look into different healthcare options. Healthcare costs can take up a huge portion of a retiree’s expenses in the United States. So, if you would like to decrease the amount of money you can potentially spend on healthcare during your retirement years, moving overseas can be a practical solution. That is why you must choose a country that has a good healthcare delivery system. You can find out more about this online or during a short trip to the country before you finally move.
When planning a move overseas after your retirement, do not forget to incorporate healthcare expenses into your monthly budget sheets. Do not be complacent by thinking that since you have a low cost of living, you will always have all the funds available to make healthcare payments. It is better to be ready when disaster strikes.
Coordinate your tax payments and inform your bank. Another important factor to consider before finalizing your move overseas is Uncle Sam. Yes, your Social Security savings will not be taxable. But, if you earn an amount more than a pre-specified limit, you may be asked to submit tax returns. For more information on how to do this, make sure to talk to a tax attorney who specializes in this field.
In addition, you may need to coordinate with your bank or financial institution to arrange how your retirement funds and Social Security benefits will be transferred to your account. It may also be difficult to get credit cards at the new country, so you may have to ask your bank for a credit or ATM card that will work in your new home.
Are you ready for your move overseas?
Once you have downloaded and filled out those 30 60 90 Day Plan templates and have researched everything about your retirement overseas move, it is time to take the plunge. Do not forget to take note of the different tips we have included above and you will be just fine. Enjoy your new life!