After decades of being a part of the workforce, you deserve a happy and comfortable life after retirement. It is easy to fulfill your dream of an ideal lifestyle if you are smart enough with financial planning. You can even think beyond the conventional and move overseas and settle there for a holiday-like living. There are plenty of global destinations acclaimed as havens for retirees. However, retiring in another country takes a lot of preparation that goes beyond money.
There is much more you need to plan before exploring an exotic destination for spending your post-retirement years. Although it sounds like a lot of work, starting afresh overseas may be the best decision for individuals who want to experience something new and different. It lets you have the luxuries you may have always wanted and make life more fulfilling and joyful. If you are looking for the perks of being an international retiree, here are some measures that set you on the right track for a happy future abroad.
Have clear expectations
When retirement is around the corner, you will have a vision in mind about where and how you want to spend the rest of your life. Clear expectations get you on the right track, and you are more likely to make the right decisions. Start by preparing a list of retirement goals and decide whether you want to move to a new destination. You may want to do it for different reasons, such as exploration and adventure or living a better life on a budget. Similarly, you may plan to move permanently or try living in different countries. Having clear goals and expectations enable you to plan the future better when it comes to spending the coming years in another country. If you plan to move with your spouse and family, they should also be a part of the decision.
Set realistic financial goals
The first step for planning overseas retirement is to set realistic financial goals. It becomes all the more important if you have a luxurious lifestyle in mind because you will need a comfortable financial cushion. A viable financial plan gets you in the right place. Consider factors such as cost of living, family, healthcare, income streams, and investment while creating a financial plan. You also need to bear in mind your estate plans, whether you want to buy a property in the new destination or just want to rent a home there. Moreover, planning well in time helps you prepare better so that you can have a stress-free life ahead even in a new country.
Choose your dream destination wisely
When it comes to living abroad in luxury, the choice of the right destination is vital. The idea of choosing a dream destination is exciting, and you may easily go wrong, so it is crucial to pick carefully. You may want to move to a country with family ties or opt for an exotic destination that holds a promise of an incredible lifestyle. But it makes sense to do some research on them before you settle for a name. Pick a few options and find the key details such as climate, political stability, cost of living, language, healthcare, and safety prospects for expats. You will not want to move to a place where you will not be comfortable and secure.
Try before you buy
Even as you compare destinations and find a few where you may want to spend the rest of your life, you shouldn’t take the plunge too quickly. Research is vital, as you must be very sure about the decision before going ahead. You may talk to international retirees to learn about their experiences in the country. It is a good idea to visit the country and spend a couple of months there so that you have a clear idea about what to expect. You can rent a place for an extended period, mingle with the locals, and see how the climate and culture work for you. It is worth going the extra mile to be sure about your choice, or you may end up regretting the decision later.
Learn all about visa options
The next step is to find about the visa options and requirements for immigration to the chosen destination. Remember that you must move legally to another country so that you can secure the state benefits and work after moving there if you need to. Italy is one of the best countries for retirees as it offers diverse routes for getting citizenship status. You can get assistance on Italian Citizenship and see which route works for you. Citizenship by descent is a viable option if your ancestors were born there, or you can explore the Golden visa if you plan to invest in the country and start a business after retirement. Business planning also involves research about local markets and set up norms.
Secure your housing
If you have enough retirement savings, you will probably want to buy real estate in the new destination. But you must have enough knowledge about the real estate landscape and home buying standards in the country. Some countries could even restrict foreigners from buying property, so prior research lets you pick the right option. You may check the norms online or find a reliable local real estate agent to guide you about buying a home in the country. Renting could be a better option initially, and you can go ahead with a purchase once you are sure about settling there and have the right connections to help you find a lucrative housing deal. Moreover, it can get easier from a funding perspective if you want a mortgage to buy a home there.
Pay attention to healthcare costs
You will probably know the basics of healthcare costs in your destination country, but it makes sense to pay extra attention when you start living there. Even though you look for a luxurious lifestyle here, your health is a bigger concern at the post-retirement age. Ensure that you sign up for medical benefits as soon as you are eligible. You will have peace of mind about the staggering costs of healthcare even if you fall sick. If you aren’t happy enough about the state benefits, it is worth considering private health insurance so that you can be stress-free.
Understand your tax position
Even as you move to another country, there could be some tax implications back home. A U.S. citizen, for example, will be liable to the IRS even if they have dual citizenship status. But there are tax treaties with some countries that limit the amount of taxes for international retirees. You may also have to pay taxes at an overseas destination once you get citizenship there. If you plan to work there, you will have to pay income tax to the government. Things can be complicated from the tax perspective, and the best way to handle them is by consulting an expert who can guide you. After all, the last thing you will want to encounter at this stage is tax woes and penalties.
Learn more about banking and investments
When it comes to planning your finances overseas, you will need a local bank after moving. But experts advise that you must retain your bank account back home. Some banks in the U.S. even have agreements with foreign banks to enable low-fee cash transfers so you can easily get money from home without a big expense. You also need to ensure that you retain investments smartly so that there isn’t a need to pay heavy taxes and fees in your home country. Good planning is vital to safeguard your investments, and a finance expert can help you utilize the right options.
Consider comeback options
Even as you may want to live in luxury as an international retiree, you may want to come home later. Attaining a dual citizenship status is your best bet as you have comeback options open. You may not sell your property back home if you have enough savings to move abroad and settle with a luxurious lifestyle there. A house in your home country gives you a sense of security if you plan to be back in the future. You may consider renting it out as it gives you a regular income and makes life easier post-retirement. But if you choose to retain property back home, it is vital to have arrangements for its management and upkeep..
As an international retiree, you need to be on the right track well in advance. Retirement planning is valuable, whether you want to live in your home country or move overseas. It becomes more significant if you have big dreams to live in luxury at an exotic destination. You will need a web of support with experts back home and in the new destination to guide you with the right choices related to real estate, taxes, investment, and immigration. Taking apt decisions ensures a smooth transition and helps you lead a dream life after retirement in a new country.
John has been a part of Outreach Monks for several years now. His articles have been well appreciated by many. His inclination towards immigration laws and how it can be beneficial for people made him analyze these guidelines in detail and write about them.