Many people dream of leaving the United States for foreign climates once they have retired. This is often what they work their entire lives for, earning and saving money to one day pack up their lives and head for a sunnier or more relaxed land. It can be a big change, but it is often a worthwhile and achievable goal if you set your mind to it.
But there are also a lot of aspects to consider before you pack your belongings and step on to the plane. It requires a sufficient amount of planning, to ensure all of your personal plans and legal requirements have been met. This, of course, will make your adjustment period easier.
In this post, four of the most important considerations have been listed to ensure you are adequately prepared for moving abroad in your senior years.
Look at the Visa Requirements
US citizens will usually require a visa when they are moving to a foreign country, with retirement visas sometimes available for those moving during their senior years. This will depend if they meet the specific age and financial criteria that has been set by their potential host country; most countries focus this on proving the individual has sufficient income to support themselves while living abroad.
A retirement visa will provide a range of benefits that have been tailored to seniors, varying from country to country. Additional benefits might include access to healthcare plans, preferential pension options, or special tax benefits. This can be an advantage for retirees who would like to save some money and experience peace of mind in their later years.
Of course, these benefits will differ depending on the destinations. Countries like Costa Rica, Italy, and New Zealand all offer retirement visas, but you should look into this further when planning your move. This research is particularly important when some countries, like New Zealand, state you must invest money to be eligible; in the case of New Zealand, this is NZ$750,000.
Ensure You Will Have Access to Quality Healthcare
Many countries that you could move to will have their own national healthcare systems, but you should understand your eligibility before you jet off. This is especially important if you are unsure of the healthcare’s quality in the country; some systems will differ greatly from that in the US. Plus, the US government will not pay for medical bills overseas.
The simplest, and often the most cost effective, way to ensure you will have access to healthcare while living abroad is through international health insurance. Some of the best global medical insurance companies offer policies that cover dental care, emergency treatment, medical evacuation, routine care, and much more. Plus, there is often the opportunity to purchase additional coverage for cancer care, maternity, and so on.
Having global medical insurance will ensure you do not have to pay out of pocket for healthcare or buy a health insurance policy in the country you retire. The coverage you select will depend on your own requirements as well as the risks associated with your host country.
Understand Your Budget and Taxes Situation
Creating a financial plan for moving abroad is another critical aspect to consider. Just like you need to budget when buying a car or going on holiday, moving abroad is no different. It is possibly even more crucial when you are retiring, though, as you will need to assess your income sources, including pensions, and estimate the cost of living in your host country.
A vital step in this is understanding how you can minimize the taxes Americans living abroad typically pay taxes to both the US and their host country, due to US citizens needed to file income taxes regardless of the country they live in. To lessen the effects of dual taxation, you might apply the foreign earned income exclusion (FEIE), apply tax credits for taxes you pay in your host country, and/or learn about existing tax treaties between the US and your country of residence.
Thorough research is required on this particular consideration, so it is encouraged that you read this information from the Internal Revenue Service (IRS).Â
Be Prepared for Some Setbacks
Whether these setbacks are from disappointment or homesickness, it’s normal for things to feel a little strained at various points after the move. After all, this is a massive adjustment in your life and you will have left a lot behind, but you should remember to take time to be kind to yourself. It is also important to be realistic with your expectations of life as an expatriate.
One of the most common setbacks seniors face in their new country is culture shock. You might feel anxious or even depressed when adapting to the new way of life that you are experiencing, and it might feel like you truly are an outsider. This feeling can be challenging to cope with when you are faced with the local customs, laws, and traditions as well as language barriers and unfamiliar surroundings.
However, you can deal with culture shock, and any other setbacks you might experience, by preparing and coping in your own ways. A lot of setbacks are normal aspects of integrating into a new area and time will ease these issues. You can do this by participating in life in the new country; learn the language, speak with the locals, and enjoy the process of familiarizing yourself with your new home.
As stated in this post, there are many considerations to remember before moving abroad as a senior. Some of the most important include understanding visa requirements, healthcare options, and the tax situation, and these aspects can greatly impact your life in your new host country.
