Mistakes to Avoid When Retiring Abroad
Do you harbor a desire of living abroad after retirement? Some people look forward to moving overseas after they retire, to explore a new country and have fun. Others consider moving to foreign countries to enjoy a low cost of living and extend their retirement benefits or funds further to live better lives.
The idea of retiring abroad is incredibly alluring for more and more Americans, and they plan where to settle in their old age while still actively working and making money. However, the sad story is that many of them make critical mistakes that mess with their ideal plans for an enjoyable retirement abroad.
Below are some mistakes you need to avoid as you retire abroad:
Not Considering Restrictions on Relocating and Buying Property
While you may have gone on vacation to some countries and enjoyed your stay there, moving to the majority of the countries is different from vacationing there. You require to get permission to stay for many years there. Besides, most countries have strict restrictions on buying of properties by foreigners.
Luckily, some counties are pretty welcoming for US residents or other nationals and encourage them to move there and own properties. However, you must still arrange properly and comply with various requirements set by these countries. For example, some need the immigrants to prove a certain minimum amount of consistent income. Typically, a Social Security benefit suffices the steady income requirement. Other jurisdictions require a much higher income, and on top of it, a minimum investment there. Therefore, as you plan to retire in any country, research the requirements to move there early enough.
Failure to Manage Currency Exposure
You need to consider the possible currency fluctuations of the foreign country’s money to your primary currency or your home country’s fiat. This is because when you receive your income in one currency and spending it in another, any changes in the exchange rate counts a great deal.
To be safe, you should look at the foreign country’s fluctuation against your primary currency and see how much it changes. That implies your living cost could go up or down by the amount of fluctuation. Thus, you need to factor that into your expenses plan.
Not Researching Medical Care Cost and Insurance
If you are moving from the US, where you enjoyed Medicare, you need to know that it won’t cover costs for medical services you receive outside the US. This means you will either foot your medical bills or self-insure. Also, get to know how you can benefit from the national medical care in a foreign country and how long you may have to wait. You could also think about getting global medical insurance allowing you to enjoy services in any country.
