- Financial advisors suggest that as older adults look to cut down on living costs and enhance their standard of living, moving overseas might be an attractive option.
- As of December 2023, over 450,000 retired individuals were collecting Social Security benefits abroad, which is an increase from less than 250,000 beneficiaries back in December 2003.
- Retirees might cut costs on accommodation and medical expenses when relocating abroad but should take various aspects into account prior to making such a move.
Seniors looking to reduce expenses while enhancing their overall well-being might consider the notion of settling abroad appealing, financial experts say.
To that extent, about one-third of retirees have moved either within their own country or abroad following their retirement, as reported by studies. new survey , 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 settling in more affordable domestic locations, 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 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 , increased expenses continue to be a driving factor significant changes Regarding retirement plans, a 2024 survey conducted by Prudential Financial revealed.
In the meantime, approximately 45% of American households are forecasted to come up short financially during retirement By exiting the labor force 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.
A lot of people who relocate seek cultural exchange.
CFP Jane Mepham, who founded Austin, Texas-based firm, mentioned that some retirees are driven to relocate internationally for the opportunity of "cultural exchange." Elgon Financial Advisors , where her expertise lies in international planning.
She mentioned, 'There’s an element of adventure.' People are really eager to explore different places.
Nevertheless, retiring abroad does necessitate advance planning For instance, you must comprehend visa regulations, residency conditions, local statutes, international taxation, and various logistical aspects.
Additionally, you should investigate whether you can join the healthcare system of your new country or if you will need to buy private insurance. Medicare does not provide coverage outside the U.S., as mentioned by Mepham.
Consider your 'life priorities'
"Many individuals might find living overseas to be a cost-effective choice, contingent upon their lifestyle preferences," according to 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 this choice, noted Boudreaux, who additionally serves as a member of 'sPid Financial Advisor Council .
According to the survey, 36% of retirees who relocated aimed to be nearer to their families, which is just marginally less than the 37% searching for a reduced cost of living.
However, your retirement plans, such as deciding 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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