Should I Stay Or Should I Go? Is Retiring Overseas The Way To Go?

It sounds so tempting: retiring overseas. It's a big world out there, and there's so much to see. If you've ever thought about retiring and settling overseas, take the big picture into consideration. Nothing is ever completely clear-cut, but if you carefully analyse the pros and cons, you can make a decision about where to live in retirement that will be right for you.

Before you get carried away with visions of lying on a sun-washed beach or swinging in a hammock next to a mountain cabin, consider these important factors in your decision-making process.

Costs

The logistics of moving abroad can be very expensive and difficult to organise. Even if you're moving somewhere where the cost of living is less than it is here in Australia, the initial outlays can be huge. You will have to pay for the shipping of your belongings, purchase a property, and perhaps buy a new car or home furnishings. Additionally, if you intend to travel back and forth for holidays, you'll need to factor regular international travel into your costs.

Savings

There are many places in the world where the cost of living is less than it is here in Australia. If the cost of living is significantly less in your new home, your retirement savings may stretch quite a bit further, and this can be especially helpful to those who have not saved as much as they need.

 

 

Health Care

Retirees generally find themselves going to the doctor more than they did when they were younger. While it's important to investigate the climate and culture of prospective new homes, it's also important to investigate the state of health care.

Health insurance can be difficult to obtain in some foreign countries, but in other countries it's surprisingly easy. In some places, like France, private insurance is mandatory for non-E.U. citizens who take up residence in the country. In other countries, like Malaysia, foreigners cannot access the public health system but the private health care costs are so low that it doesn't matter to most people. 

Community

Leaving your network of family and friends can be very difficult for some people, and it helps if you can quickly develop a new network of friends in your new home. Many retirees who move abroad find new friends at churches, community events, and through organisations associated with specific interests like recreation, music, and hobbies. As you make your decision about whether or not to retire abroad, be honest about the extent to which you rely on your current network of family and friends. Are you open to making new friends? Will you miss your family too much?

Your Current Financial Ties and Assets

Are your finances in a state that allows you the freedom to move to another country? If you need to sell your current home in order to move, is the local real estate market in a depressed or heightened state? Do you own a business that may suffer if you are not nearby to help with it? With advances in technology, it's not always necessary for business owners to be nearby; in fact, many people manage businesses remotely as a matter of course. Weigh the pros and cons of your current financial ties and assets and evaluate the impact of your move on your overall financial picture.

Language and Culture Shock

Living abroad is quite different than being a tourist. If you're considering moving to a country that caters to English speakers, you may not have to deal with linguistic difficulties, but if you're considering learning a language, are you prepared for the challenge? Culturally, will you be comfortable living in a place that may have different ideas about clothing choices, cleanliness, social interactions, shopping, food, and gender roles? For many people, this is one of the refreshing and enlightening aspects of retiring abroad; just make sure you're honest with yourself about your comfort level.

Immigration/Visas

Depending on your destination, immigration and visas could cause you some hassle. If you don't file for residency, you may have to travel back to Australia or to the country's nearest border periodically to renew your visa. This can add significantly to your cost of living. As you do your analysis, make sure you include the cost of immigration and visas into your calculations.

If you're still unsure about whether or not to retire overseas, you may want to talk your situation over with a financial adviser. An adviser may have insights into the situation that you haven't yet thought of, and it's comforting to have an outsider's view of your overall financial picture from someone who is well versed in retirement planning.