OK, so you’re getting ready to retire. You have made the decision that you would love a change of scenery and would love to retire abroad. One of the first things to think about is – savings needed to retire abroad. How much will you need? It would be so much nicer to be able to retire abroad than to end up in a retirement village. With living abroad you need to consider the cost of living and the cost of healthcare.
There are some things to consider if you decide to live abroad, where you are retiring from, how your health is and your costs of living. Do you play golf, do you have a hobby that you love and would love to do. You may love to paint and would love to go to a place that you may be able to paint the landscape. Things like that. The least expensive place to retire to is Malaysia. Some of the costs of living here could be around $1,300 a month and on the other scale, approximately $600,000 in a New Zealand bank for around 2 years and that is before the cost of living!
Savings needed to retire abroad – you really want to have a nice hefty sum of money in savings. You may need to buy new electrical appliances such as a refrigerator or television as the electrical sockets can be different in other countries.
If you decide to retire abroad your Savings Needed to Retire Abroad are not the only costs to consider. You would also need to have an emergency backup fund in case of an emergency and you needed to fly home for any reason.
Here is a list of 5 of the “cheapest” places to retire in.
1. The Algarve, Portugal
Algarve, Portugal has some of the most beautiful beaches and also has some of the best golf courses. The healthcare system is very good. The cost of living is quite low and a couple could comfortably retire on around $2,000 a month.
2. Cape Town, South Africa
Cape Town has some beautiful landmarks – Table Mountain and Cape Point. There are a number of outdoor recreational areas and are known for the relaxed lifestyle and comfortable climate. A couple could live here on around $2,000 a month which includes rent, food and activities. The healthcare is also quite good.
3. Granada, Nicaragua
Granada is a small town located on one of the largest lakes in the world. Granada is also one of the oldest Spanish towns in Central America. The government have some incentives for retirees. Retirees can buy or import a car without paying tax, and you pay no tax on foreign income. The cost are around the same as the first two places.
4. Kuala Lumpur, Malaysia
Malaysia is one of the most favorable places to retire in. Kuala Lumpur has beautiful beaches, rainforest, and some spectacular architecture. Kuala Lumpur also is known for their parks and gardens and sport and recreational activities, Retirees could live here on around $1,300 a month and the healthcare is very good.
5. Wellington, New Zealand
Wellington is on the North Island, New Zealand. The lifestyle is very laidback and the countryside is quite beautiful. The climate is moderate. The disadvantages of living in New Zealand is that you cannot get a permanent retirement visa so you must apply every 2 years. It also has a higher cost of living, around the same as if you still were in the US. The countryside is lovely and you can surf, trail through the forests or ski on the snow covered mountains. Some of the healthcare is free under the public system but expats may buy private insurance.
A final note
Deciding to retire abroad can be a great idea. Savings needed to retire abroad is something that you really need to consider. The biggest costs are travelling, having funds for healthcare and your emergency fund. This is a must. You really must be prepared for anything. If you had to fly home to family, can you do it, do you have the available funds for any emergencies that may crop up.
Other things to consider – do you need to learn a new language, are there some cultures that you need to be aware of. Research your locations that you are interested in. find out what their rules are including the resident requirements and visas. There are also taxes. Different countries have different taxes so find out what they are and make all your decisions on the appropriate details. It is also a good idea to have paperwork in place with a solicitor or attorney just in case things happen and you need legal advice. This is precautionary but good to have in place.
Lastly, research everything, have savings in place, pack up and GO!
Enjoy your retirement.