Seeing the world is a dream for many – a dream that is often postponed to retirement due to time and financial obstacles. Some retirees choose to move abroad so that they can drown themselves in another culture. Others see as an opportunity to retire in a different country as an opportunity to increase their dollars more than the United States.
There may be a lot of upsids to retire abroad, but it also comes a combination of its challenges. If you are considering this, make sure you plan for the following five things before you start selling your luggage.
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1. Health insurance
In the United States, most of the elders rely on medical needs for their health insurance needs. But medical coverage is extremely limited. Generally, only once the program will cover health care in another country:
- When you are a medical emergency, you are in the United States, and a foreign hospital is closer to a nearby US hospital that can cure your medical condition.
- When you have a medical emergency and a Canadian hospital is closer to the US hospital, you are traveling to Canada by the most directly route between Alaska and another US state.
- You live in the United States and a foreign hospital is close to your home, regardless of an emergency.
If you move to another country in retirement, none of them apply to you. You will need to research accepted health insurance in the country in which you plan to retire.
2. Social Security
In most countries it is possible to claim the benefits of social security abroad. However, if you intend to retire in any of the following countries, you may be involved in matters:
- Azerbaijan
- Belarus
- Kazakhstan
- Kyrgyzstan
- Tajikistan
- Turkmenistan
- Uzbekistan
If you are retiring in any of these countries and are pleased with limited payment terms, you may be eligible for a discount. Contact the Social Security Administration to find out more.
In addition, if you retire in Cuba or North Korea, you will not be able to get social security benefits in any case. However, if you later go out of one of those countries and go back to the United States or go to a country where the United States can send social security benefits, you can collect all the backbacks that your Are obligatory.
3. Budget
The cost of life is significantly different in the country and where you live within the country. Research on how common costs, such as grocery, housing, insurance, medical care, and transportation costs and compares you are now accustomed to paying. This is the key to making enough budget for your retirement costs.
Close to retirement when you may need to do so many times. The costs of the country where you intend to retire can increase or slowly grow faster than US spending, you will need to monitor it and adjust your savings strategy accordingly.
4. Tax
Taxes become more complicated when you retire abroad. Unless all your money is in the Roth accounts, you will still pay a portion of your retirement savings to the US government. In the country you go, you may face some tax such as property tax.
Consider consultation with tax professionals in the United States and this country, you plan to retire so as to find out what to expect. Make sure your annual retirement budget includes enough for taxes. Tax rules are another step, over time, you may have to repeat more than once.
5. Logistics
Financial matters are not the only challenge when you retire abroad, you have to visit. You may have to learn a new language. You have to set your visa. You may need a driver’s license in your new home country.
You can simplify the transfer by planning these things in advance. The Internet may be helpful, but you also want to consult someone who lives in this country to help you understand the steps you need to take.
Retired abroad may begin an exciting adventure. But this is not something you want to hurry. Carefully plan and advise experts to make sure you are not forgetting something important.
