Retiring abroad is becoming a more common ambition for many people. You have worked hard for many years and feel you deserve your time in the sun – quite literally. But moving overseas in later life is not quite as simple as just packing your suitcase and jetting off.
There are plenty of things you should think about beforehand, so you can be confident you will get to enjoy the quality of life you both want and deserve. Go online or speak to friends and family who may have moved abroad, so you have a good idea of the challenges they faced, the benefits they have enjoyed and specific issues relating to the place you would like to live in.
Having enough money in the bank and a steady income is vital if you are to enjoy a comfortable and fulfilling lifestyle. After all, you will want to meet your basic living costs, access vital services and enjoy pastimes and hobbies without it being a struggle. So, before you move overseas, you need to look at how you are going to generate an income that will allow you to be comfortable. Check if your pension and savings cover your costs, or will you need to continue working?
Once you have worked out how much money you have to live off, you need to look at how it will be taxed. Some countries have much tougher tax regimes than others, so you need to research what you will be liable to pay in your chosen country. If you are only looking at moving abroad for part of the year, this can be slightly easier as you will continue to be taxed as a UK resident.
As a resident of the UK, you are entitled to free healthcare courtesy of the NHS. You will not want to compromise on healthcare provision in later life, when you might perhaps need it more than ever, so it is worth looking at what you can access in your chosen country from the state, and whether you will need private health insurance and how much this would cost.
Before committing to moving overseas, it is important to establish specifically what you want from your new home. Do you want low living costs? Good weather? Peace and quiet? Proximity to sport and cultural events in the city? And do you want to go somewhere completely new, or relocate to a place that you have visited before on holiday and already have some familiarity with? It is important to determine what you want so you can pick a destination that truly ticks all your boxes.
Going somewhere on holiday is not the same as living somewhere full time, and holidaying there can give you a false idea of what it is like to be a permanent resident. It is well worth committing to a trial period in your chosen destination to experience a more realistic impression of what day-to-day life will be like. You can spend that time accessing the amenities you want and need, enjoying your chosen hobbies and activities, and using the local services from transport to healthcare.
At the end of the trial period, you will have a much better idea of how easy or difficult things are, and whether the place you have planned to retire to really is somewhere you would like to live permanently.
The only certainty is change. As your situation evolves over time and the economic environment transforms, you need to be sure your financial arrangements remain fit for purpose. Many people who move abroad fail to consider this and find themselves with a declining income as a result, so ensure you commit to reviewing your finances every few months to check your money is working as hard as it can for you.
If you have any questions about retiring overseas and what steps you can take to achieve this goal, please get in touch with us, and we will be happy to speak with you.
