Moving abroad in retirement can be a way to stretch retirement savings with a lower cost of living, enjoy new experiences, or find a more compatible cultural climate. It involves complex decisions, including health care, safety, and lifestyle needs, but with thorough preparation, it can be an extremely rewarding experience.
Before diving into logistics, identify why you want to move abroad and what you hope to gain. Are you seeking a lower cost of living, access to better healthcare, proximity to family, or simply a change? Your specific motivations will help guide your decisions regarding location, housing, and financial planning.
Before moving abroad in retirement:
1. Research your intended destination.
There are many countries ideal for seniors moving abroad, but not every country is equally senior-friendly. Some offer excellent public health systems and retirement visas, while some may have limited infrastructure or higher crime rates and safety concerns. Ideally, visit your chosen country for an extended stay before making a permanent move, to ensure that your research matches up with the experience.
As with any large decision, it may be helpful to list your priorities – factors such as climate, proximity to beaches or mountains, knowledge of the local language, safety, healthcare quality, and affordability.
Not sure where to start? Though they are no substitute for thorough research, online tests such as Expatsi may be a helpful starting point. It asks about your choices in health care, safety, language, and other preferences so it can help pinpoint your priorities and suggest potential destinations.
If you don’t feel comfortable doing the research, hiring an immigration lawyer or relocation consultant can make the process smoother and reduce the chance of costly mistakes.
2. Organize your belongings
Decide what to bring, store, sell, or give away. International moves can be costly, so many retirees downsize significantly before relocating.
- Shipping vs. local purchases: Compare the cost of shipping household goods with replacing them abroad. Keep in mind that storage facilities can often end up costing more than the items stored within them.
- Sentimental items: Keep irreplaceable mementos, but avoid clutter. Consider taking pictures of items that you’d like to remember, rather than keeping the item itself.
- Medical equipment or aids: Bring what you rely on, but confirm compatibility (for example, electrical devices may need voltage converters).
3. Understand visa and residency requirements
Visa requirements for moving are much more stringent than those for visiting. Every country has its own rules for foreign residents, and those rules may change depending on political climate. Many countries offer special visas for retirees, but be prepared to offer proof of passive income or savings. And keep in mind that arriving at your destination is only the beginning – you must continue down the path of renewal or permanent residency if you plan to stay long-term.
4. Prepare your finances
Financial preparation is critical when moving abroad.
- Cost of living: Compare expenses for housing, groceries, utilities, health care, and transportation. Understand currency exchange rates and fluctuations, which can impact your monthly budget.
- Banking: Decide whether to maintain U.S. accounts, open foreign accounts, or both, keeping in mind that some countries require you to have a minimum balance in a local bank before applying for residency. Explore international banking services that minimize transfer fees – including credit cards that waive foreign transaction fees.
- Taxes: Remember that U.S. citizens must file annual federal tax returns even when they are living abroad. Some countries also tax worldwide income, so research those liabilities or consult an international tax advisor.
- Pension and Social Security: Check whether your retirement income or Social Security benefits can be deposited into foreign accounts, and speak with your accountant to understand the tax implications.
- Your financial cushion: This is especially important for ex-pats, since unexpected expenses such as medical care, visa issues, or emergency travel back home can arise at any time.
5. Prioritize health care planning
For seniors, health care is often a deciding factor in choosing a country. Look into the following factors before making your final decision:
- Availability of doctors and hospitals: Look for English-speaking physicians if you don’t speak the local language. Some countries offer paid medical concierge services that assist in finding and booking medical appointments with English-speaking providers.
- Health insurance: Some retirement visas require proof of insurance. International health insurance plans are available, but they vary in cost and coverage, so be sure to factor those costs into your monthly budget. Some seniors maintain Medicare in the States while purchasing local insurance abroad, ensuring coverage in both countries if they split time or return to the U.S. for specialized treatment.
- Prescription medications: Research whether your current prescriptions are available, affordable, and even legal in your destination country.
- Long-term care: If you anticipate needing assisted living or in-home care in the future, research the availability and costs.
6. Handle legal and estate matters
Before leaving, update all important legal documents:
- Wills and trusts: Ensure they are valid in your new country or updated accordingly. Be sure to check the requirements of your destination country.
- Power of attorney and health care proxy: Assign someone you trust to handle decisions if needed.
- Advance health directive: Outline your wishes in case of serious illness.
- Property planning: Decide what to do with U.S. assets such as a home, car, or investments.
Keep copies of all documents in both physical and digital form. Having a trusted attorney familiar with international estate planning can help avoid future complications.
7. Address housing needs
Housing is one of the largest factors in comfort and quality of life abroad.
- Renting vs. buying: Renting allows flexibility and less upfront investment, while buying may provide stability but comes with risks in unfamiliar markets. Whether renting or buying, some countries require proof of housing, which can mean a signed lease, deed, or other documentation.
- Accessibility: Look for single-story homes, elevators, or senior-friendly modifications.
- Proximity to services: Being near hospitals, pharmacies, grocery stores, and public transportation is especially important for older adults.
- Expat communities: Some retirees prefer neighborhoods with other expats for easier socialization and support. One of the most challenging parts of moving abroad is loneliness and the separation from your community back home. Finding people in expat clubs, language classes, or volunteer opportunities who are familiar with your country of origin will be helpful in your transition.
8. Plan for communication and travel
Relocating abroad is not only a logistical move but also a cultural shift. Your integration into your new country will be much easier if you have researched the traditions and cultural norms, and are flexible and adaptable Taking steps such as learning the local language can improve daily life and reduce isolation.
Staying connected with family, friends, and trusted professionals back home is vital. Set up reliable communication methods such as social media, WhatsApp, Zoom, or international phone plans.
With thorough preparation, moving abroad in retirement can be the adventure of a lifetime, offering opportunities to stretch your budget, immerse yourself in a new culture, and enjoy a fresh chapter.
