Forget about shuffleboard and early bird specials! Retirement is taking a new direction as more Americans trade their rocking chairs for a new adventure in their golden years.
Retirement should be awesome, right? Everyone’s going to define “awesome” a bit differently, but international locations are becoming more common as a part of that definition. The strength of the US dollar makes a lot of other countries more affordable, which means either a higher standard of living or stretching the savings account further over there. Either way, it’s becoming more of an option for more Americans, so let’s take a look at some things to think about.
Here are Five Fast Facts about retiring overseas:
- ✈️ The Trend - There’s no way to know exactly how many Americans have retired overseas, but we can take a guess based on the Social Security payments that get sent abroad. As of 2021, it was almost half a million (up from 300k in 2008), but that is likely undercounting because a lot of Americans living abroad still bank here in the US.
- 🏖️ The Locations - Some of the most common destinations are just south of us, like Mexico, Costa Rica, or Panama. These are relatively close, a much lower cost of living, and often have active expat communities to help you get adjusted and fit in. European countries like France or Spain are also common because they have strong health care and tax policies, as well as rich and historically vibrant culture to soak up. Destinations are like real estate: location, location, location!
- 💰 The Money - To retire overseas, it takes planning…sometimes years of planning! You have to consider currency exchange rates, cost of living changes, your nest egg and investments, tax implications, working vs drawing benefits, health care, and much more. It’s wise to also study up on the cost of food, transportation, and everyday living expenses. There’s nothing worse than having to cut short your dream retirement because you ran out of money, right?
- 🤔 The Challenges - The money and logistics are definitely the biggest challenges! Once you get those sorted, you may still have language barriers, challenges adapting to the new culture (you’re not just visiting for a few days this time!), and being away from family and friends. Make sure you redefine your sense of purpose, too, or you might feel some regret once the novelty of the new place wears off!
- 💡👍 The Benefits - The biggest benefits are new cultural experiences, a change of scenery and pace, and a new sense of adventure. You can meet new people, learn new hobbies or skills, and see new things. And, perhaps most importantly, you can choose your pace and direction!
🔥Bottom line: Retirement abroad isn't just about the golden years; it's about embracing a golden lifestyle. From basking on the sun-kissed beaches of Mexico to savoring the historical charm of European cities, Americans who choose to retire abroad embark on a thrilling chapter of their lives. With careful planning and preparation, retirees are creating their own version of the ultimate retirement dream - where adventure knows no bounds and paradise becomes their everyday reality.
Take care of those Paychecks today so you can enjoy your paradise tomorrow!
Where will you retire? And where would you like to retire?
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