How to Plan Your Retirement Abroad

Types of Pension PlansRetirement Planning

The prospect of retiring abroad can be exciting for many, and is a trend that’s not going away anytime soon. It brings with it the possibility to pursue new interests, a different climate, and an exciting and less expensive way of life.

However, retiring abroad requires careful planning, and there are a few critical areas and steps that you should consider before making the move.

  1. Decide Where

The place that you choose as your retirement destination will depend on many factors, such as cultural interests, distance from relatives, and your current financial situation. It is important to determine which destination is best suited for you.

If you’re stuck for ideas, you can find a list of the top destinations here.

  1. Research Visa and Residency Requirements

Once you have decided where you would like to go, you must research immigration and residency laws. Determine whether you will need a visa to initially move there, and whether you can qualify to become a resident.

  1. Refrain from Jumping Right In

Take plenty of time ensuring that your chosen destination is right for you. Make sure to visit first, and consider renting property before buying. This will keep your options open.

  1. Consider an All-Cash Purchase

When you are looking to settle down for good, look for properties that you can purchase outright. This can make for less complicated transactions, and eliminates the need for finding an overseas mortgage or a loan from a local bank.

  1. Get a Local Driver’s Licence

Some countries may not accept your current licence. Not everyone will find driving necessary, but for most, the pain of acquiring a new licence is worth the freedom that it provides.

  1. Prepare for Emergencies

Leave emergency contact information and a copy of your passport photo page with family and trusted friends. In addition to this, make sure you know the contact details of the nearest embassy.

  1. Establish Healthcare Coverage

There is no need to explain why healthcare in retirement is important, and thankfully many countries have their own national health systems. However, it is important to investigate eligibility, availability and quality beforehand.

  1. Prepare your finances

Be sure to consult with a financial advisor and tax specialist before you move, ensuring to remain in touch whilst abroad. Current circumstances are not guaranteed to remain the same, so it is worth being able to contact someone that has an up-to-date understanding of the local laws.