Are you approaching your retirement period and you are aiming a sense of adventure that will make your retirement more enjoyable than your service year? Have you thought about this – why more retirees are seeking to live outside the United States?
According to the 2018 International Living Global Retirement Index, Costa-Rica is one of the top retirement destinations, followed by Mexico and Panama. This profile index is based on a number of factors such as the best climate, lower cost of living, high-quality and affordable healthcare, adequate security, interesting culture, availability of food, and a place where life general moves at an easier pace. This simply means that the ideal destination for retirement lies outside the United States.
No one wants to be striving in his or her retirement; paying huge taxes and bills as experienced during service year. Many seniors are always searching for an affordable place to enjoy their retirement, live a cost-effective life that falls within the purview of their retirement budget; hence, retiring overseas becomes a good option.
To achieve this, you need to plan and prepare for it now that you are still in service. What and what is required to retire abroad? This post will highlight them step-by-step to make it more understandable for you.
Here at Moving Feedback, we are committed to equipping you with the required information to make your retirement easier for you. The earlier, the better; you should start planning and sizing various retirement options, especially if you are considering retiring overseas, you should start at least two years towards the end of your service year.
An overseas move requires long-term planning, so, it is better to start as earlier as possible. These tips are about planning your retirement overseas and make your cross-country move as easy as possible for you:
1. Check What are the visa and residency prerequisites
There are available options to weigh when it comes to retiring abroad. But remember the law governing both immigration and residency are varied from country to country. The first step after concluding to retire overseas is to review the chosen country visa and residency requirements you are planning to move to.
The information such as validity of the passport, currency restrictions for both entry and exit, required and recommended vaccinations to access the country, and much more are worthy of knowing before time.
2. Check What are the safety and political stability
Before considering moving to a country for enjoyable retirement life, it is essential to research the safety and political stability of the country. This will help you prepare for any potential changes.
You can get much information and update about the safety and stability of each country on the U.S. State Department platform. You can get a travel warning or alert for some nations or locations, or sometimes restriction to visit such a country.
3. Check What are the rules of foreign property ownership
Before you make up your mind to move to a country, research the rules for owning property in such a country. Studies have shown that while many nations have laws regarding who can own properties, some restrict foreign ownership of the property for many purposes.
Ensure you perform all this researches before finally make your decision. Some countries may not even restrict foreigners from buying real estate but control the usage and how it can be sold.
For example, in Malaysia, non-citizens are permitted to buy real estate, but whenever the property is sold, it must go through a Malaysian bank account. This and many more are taking place in different countries.
4. Visit before moving
The investment worth it – Take a brief vacation to the country or state of your choice and study the environment before moving. Remember residing in a country cannot be compared to being a tourist.
Your brief stay in the neighborhoods or state gives you a sense of what you should be expecting if you finally move to the country. If possible; visit once in each season to study the weather and other climate changes.
5. Rent before buying
You can achieve this stage during your visit to the country for possible moving. If you have decided to visit the area every season, you can consider renting an apartment to be living whenever you visit, and during these seasons of visit, you can study the compatibility; if you find it perfect, kick-start the house-hunting with immediate effect.
6. Arrange your assets and taxes
Though you are retiring overseas; that doesn’t mean all your assets must move with you to your chosen country. You don’t cross country with your assets such as bonds, stocks, IRAs, and annuities since you are still a citizen of your current location.
All you have achieved and acquired in your service years should be taken care of. It is safe to leave them behind and let them continue yielding for you. Then, what is expected of you?
- File an income tax return with the Internal Revenue Service (IRS)
- Declare every penny withdrawn from your retirement purse.
- Consult with a tax advisor or tax attorney
- Open an account to accept transfers from your United States account. Major credit cards such as MasterCard, Visa, and American Express are good options to accept payment around the world.
7. Settle your healthcare
Every senior should be able to access quality healthcare to enjoy their retirement years. Your health is non-negotiable and should be taken seriously when planning your retirement abroad.
Your current health insurance policy may not cover you overseas. Based on your retirement destination, you may not need a special healthcare policy if the country’s healthcare system is affordable.
Ask about their healthcare system to know if their subsidized medicare covers non-citizens. If not, inquire about the best package for you. If healthcare is vital for your move, you can first research the best country for the healthcare system before considering one.
8. Establish a connection with friends and family
Now that you are moving to your retirement destination, it is essential to set up an easy and strong connection to friends and family while you are staying abroad. Thanks to modern technology such as Skype for online video-conference, and other functions available on the Smartphone.
It helps people keep in touch. Ensure you establish a reliable and strong connection with friends and family before moving to your retirement destination.
The following table display planning tips for your retirement abroad:
|No.||Planning Tips for your Retirement Abroad|
|1.||Check what are the visa and residency prerequisites|
|2.||Check what are the safety and political stability|
|3.||Check what are the rules of foreign property ownership|
|4.||Visit before moving|
|5.||Rent before buying|
|6.||Arrange your assets and taxes|
|7.||Settle your healthcare|
|8.||Establish a connection with friends and family|
Retirement is the beginning of another life entirely; but if you do not plan very well, it may turn otherwise. If you aim to retire overseas, it requires adequate planning which must commerce earlier enough for a better result. This article has handled all you need to know to be in your desired country. Follow the above tips and thank me later.
Thomas has a degree in literature from Stanford University and a profession in Mass Communication. Thomas is a member of the Moving Feedback research team, an expert in writing educative articles to help readers make the right buying decisions. He is well versed in moving industry matters to give the best advice on moving needs.