Healthcare costs and taxes WILL increase substantially in the United States and both will be the biggest expenditures for future retirees. However, retiring abroad can be a more attractive prospect for lots of budding retirees.
As WSJ columnist Jeff Opdyke states, retiring abroad can lead to an earlier retirement and allow you to get more for your money.
Sounds too good to be true, but hold on just a sec. Retiring abroad does have a few drawbacks you need to consider financially:
Medicare doesn’t generally cover costs outside the U.S., so make sure you know precisely how much cover would cost and what you’d get in return.
Opening a bank account and managing money can be easy. It can also be a nightmare! It really depends on where you are, so take the time to find out from others what the experience was like for them and what tips they might have for you.
Housing and Taxes:
Again, research, research, research! Lots of countries (Italy, Panama, and Thailand) offer visas and incentives to retiring Americans gracing their shores. There are also lots of articles on buying or renting property overseas and it’s worth checking out if your destination country has a tax treaty with the U.S. to make sure that you don’t get taxed twice.
Are you planning to retire abroad? Share your story and plans.