Thinking of Retiring Abroad?
NEW YORK, December 2, 2022 (Newswire.com) - iQuanti: More and more people are considering retiring to another country. Whether it's the weather, the pace, or the ability to make one's retirement fund go a lot further, life abroad is looking more appealing than ever to many retirees. Uprooting your life is never a small project, but if the allure of a life abroad has piqued your interest, here are some steps that can help make your idea a reality.
Figure out where you want to go
First, you'll want to decide where to live. If you're not sure where to start, many business and lifestyle publications regularly publish rankings of the best places to retire. If you already have a short list of candidates, compare them and research how your lifestyle might look like in each one.
When thinking about where you want to live, it can help to consider which countries you find most appealing in terms of climate and culture; if you're tired of winters in a big city, you might prefer retiring to a more relaxed town in a warmer climate. The local cost of living is just as important as your spending habits. Moving somewhere with a more affordable standard of living can allow you to enjoy a more comfortable retirement.
How easy is it to adapt to the local culture? After retiring abroad, you'll need to form a whole new circle of friends. Seek out communities of retirees and expats on social media, particularly if you don't speak the local language. Living abroad can be intimidating at first, but with a bit of persistence, you can foster lasting friendships.
Figure out housing
You've hopefully narrowed your original list of countries down to a couple of cities or towns. The next step is to decide on your housing situation. This can be complicated at first, since both landlords and banks can be wary of nonresidents. There are brokers and real estate websites specializing in serving foreigners and expats, but those can come at a heftier price. Some retirees elect to rent first and purchase once they've put down some roots and become more familiar with the local scene.
Make sure your finances and budget work out
Budgeting for your retirement is always important, but it becomes crucial when you're living abroad: you're working with a set income and you'll need to make it last. You'll have to budget for visa fees, relocation, food, housing, utilities, healthcare, and travel; it can feel overwhelming, but it's important to make sure your financial math checks out. Remember, if you have an existing whole or universal life insurance, you can borrow against the cash value of the life insurance policy if needed. This may be helpful if you need cashflow for a big move or during market dips when you may not want to withdraw as much from retirement accounts that depend on the market. Note that the primary purpose of permanent life insurance is the death benefit and borrowing against the cash value reduces the death benefit until you pay the loan back.
Make it happen
Uprooting one's life is never a small project, and the work that goes into an international move can feel overwhelming—but that doesn't mean you shouldn't try. By taking the decision-making process one step at a time and budgeting carefully, you may find your dream of a retirement abroad is very much within reach.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement retirement income will reduce the death benefit and may affect other aspects of the policy.