You should also look into local exchange rates in countries you’re considering moving to; you may be surprised (whether pleasantly or unpleasantly) at the value your native currency gains or loses.
Unlike Medicare, other senior financial programs do not require you to live in the United States. For example, Social Security will continue to pay a retirement annuity if you retire abroad. Confirm this by contacting the Social Security Office of Earnings and International Operations. [4] X Trustworthy Source US Social Security Administration Independent U. S. government agency that administers Social Security and related information Go to source
Paying out of pocket is not necessarily a bad option; many foreign countries have relatively inexpensive health care (Especially in comparison to the U. S. ) and so you may be able to save money by not purchasing health insurance. Finally, in nations with socialized health care, you won’t need to worry about health insurance at all.
For example, Panama’s pensionado plan requires retired seniors to have a monthly income of $1,000 (including Social Security) in order to qualify for residency. On a similar type of plan, Ecuador requires an income of $800 a month, and Nicaragua and Columbia each require over $600 a month. [7] X Research source Certain countries—including Ecuador, Panama, and the Dominican Republic—offer residency to immigrants who are willing to make a financial investment in the nation. [8] X Research source
This allows you to maintain residency in your native country while still being able to spend substantial time retired abroad.
Be sure to check with the State Department of nations that you’re considering retiring to and ask about their residence visa policies. Some countries may have more stringent requirements than others. Some nations that do not require visitors to hold a visa will require one of even temporary residents.
Even if you plan to relinquish your American citizenship—an uncommon move—or move your financial assets to a foreign country, the U. S. government has laws in place which force you to continue paying income tax. Retirees from other countries will likely still be taxed by their respective native governments and would need to contact their nation’s State Department for further information.
Also bear in mind that moving from a familiar culture to a foreign one can be a challenging experience, especially if you haven’t traveled abroad much before. Prepare yourself for this culture shock by making smaller trips in advance of your retirement, and reading as much as possible about the culture you’ll be retiring into.
Parts of Western Europe are also becoming increasingly affordable for expatriate retirees, including Valencia, Spain, where residents can find a decently sized apartment for around $400 a month. Many South American options have mild weather and cultures friendly to foreign retirees, including Buenos Aires, Argentina, and the country of Guatemala. [14] X Research source
Keep in mind that, even if the cost of living in a foreign country is lower than it would be at home, you’ll still be faced with the cost of relocation, plus amenities such as electricity, cell phone bills, and transportation. These factors could cost more abroad. [16] X Research source
If you’re planning well in advance, you could even rent a small house or apartment in the country, and give yourself a 6-month trial run. If you still enjoy the country after that time, then continue with the plan to retire abroad.
