- Financial advisors suggest that as older adults seek ways to cut down on living costs and enhance their standard of living, moving to another country might seem attractive.
- As of December 2023, more than 450,000 retired individuals received Social Security benefits abroad, compared with less than 250,000 retirees in December 2003.
- Retirees might cut costs on accommodation and medical expenses when relocating abroad but should weigh various aspects beforehand.
Seniors looking to reduce expenses while enhancing their overall well-being might consider the concept of settling abroad appealing, financial experts say.
As mentioned, almost one-third of retirees have moved either within their own country or internationally following their retirement, as stated in the report. new Pawonation.comsurvey , which surveyed over 6,600 adult participants in the U.S. during early August.
Several leading causes for retirees relocating included lower cost of living The survey revealed preferences for a more comfortable way of living or improved weather conditions.
Although numerous senior citizens from America prefer relocating to more affordable cities or states, some are deciding to enjoy their retirement overseas instead.
More than 450,000 retirees were receiving Social Security benefits abroad as of December 2023, based on the most recent data from the Social Security Administration. This represents an increase from fewer than 250,000 retirees in December 2003.
As each year passes, we see an increase in this trend," stated certified financial planner Leo Chubinishvili from Access Wealth in East Hanover, New Jersey. "I believe this growth will persist.
Despite cooling inflation , higher expenses continue to drive significant changes Regarding retirement plans, a 2024 survey conducted by Prudential Financial revealed.
In the meantime, approximately 45% of American homes are forecasted to come up short financially during retirement By exiting the workforce at 65 years old, based on a Morningstar model that examined expenditures, investments, life expectancy, and various other elements.
However, certain retirees can make their savings last longer by residing in places where the cost of living is lower. lower cost of housing , healthcare and additional costs, based on their requirements, according to Chubinishvili.
numerous individuals who relocate seek cultural exchange
CFP Jane Mepham, who founded Austin, Texas-based firm, mentioned that some retirees are driven to relocate overseas for what they call a "cultural exchange." Elgon Financial Advisors , where her expertise lies in international planning.
She mentioned, 'There’s an element of excitement,' adding that people are really eager to go traveling.
Nevertheless, retiring abroad does necessitate advance planning For instance, you must comprehend visa regulations, residency stipulations, local statutes, international taxation, and various logistical aspects.
Plus, you'll need to research whether you can get into your new country's health system or whether you'll need to purchase private insurance. Medicare won't cover you abroad, Mepham said.
Consider your 'life priorities'
"Many individuals might find living overseas to be a cost-effective choice, contingent upon their lifestyle preferences," noted CFP. Jude Boudreaux , partner and senior financial planner with The Planning Center in New Orleans, who works with several expat clients.
However, elements like closeness to elderly parents or grandchildren might significantly influence the choice, noted Boudreaux, who is also part of Pawonation.com’s team. Financial Advisor Council .
According to the Pawnation.com survey, out of retirees who relocated, approximately 36% aimed to live nearer to their families, which is just marginally less than the 37% searching for a more affordable lifestyle.
However, your retirement plans, such as choosing to reside overseas, might alter subsequently based on your situation, he mentioned.
Boudreaux stated that everyone bases their decisions on personal life priorities, and having clarity on this aspect assists individuals in making sound choices.
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