Should you consider living abroad in retirement?
Since my return to the internets after about a 4-year break, I’ve updated many of you on life changes that included a recent divorce, caring for an aging parent and moving to the island of Puerto Rico.
When I first hit the personal finance scene as a blogger, I had already paid off over $120,000 of debt, started investing in the stock market and real estate and was well on my way to being financially independent by the age of 40.
But again, with the recent changes in my life, I’ve had to reorient myself to meet these goals. I left what was rightfully due to me in that divorce, so as of late, I’ve found that I’ve had to find another approach to reaching my goals. At times, this journey has been daunting—trying to figure out how to replace years of work and effort without coming up short of living the kind of life I’d like to live.
One revelation I had was considering lower-cost-of-living (LCOL) locations to make my income stretch further. So, I recently moved to Florida to avoid state income tax. Then, I high-tailed it over to Puerto Rico, which has beneficial tax treatment for people earning certain types of income. Now, I’m getting a condo built in the Dominican Republic and have my sights set on buying real estate across the pond, too.
Though I’m looking for economical places to live, I’m also looking to accumulate real estate for investment purposes. In either case, this journey has been utterly fascinating as I look to save money and live richly in places of the world that suit me the most.
Although I’m sad that a divorce led me to this point of having to search LCOLs, I’m thankful for the travel and exploration aspect. I’ve had a ball exploring the Caribbean and, recently, the European Union, and I hope to do more in my pursuit of my economic digs.
Anyway, if you’re in a similar situation, check out this post on why you might want to consider living abroad in retirement, too.
Enjoying yourself in retirement—it’s possible!
Retirement is often seen as the golden opportunity to unwind and enjoy the fruits of decades of hard work. For many, this phase of life can also bring new challenges, especially when it comes to finances.
If you find yourself with less retirement savings than you hoped but still yearn for a high-quality lifestyle, living abroad could be the solution. Many retirees are discovering the benefits of relocating to countries with warmer climates, vibrant cultural scenes, and the allure of travel, all while making their pensions stretch further.
Affordability and cost of living
One of the primary advantages of living abroad as a retiree is the potential for a lower cost of living. Countries such as Mexico, Portugal, and Thailand provide affordable housing, food, and healthcare options compared to many areas in the U.S. or Canada.
This financial relief can allow you to maintain a comfortable lifestyle and have less stress about your budget. With careful planning, you can find a perfect location that suits your needs, giving you the freedom to enjoy more experiences without breaking the bank.
Warmer climates await
For those tired of dreary winters or cloudy skies, seeking warmth can be an appealing reason to retire overseas. Many retirees flock to sunny locations where they can enjoy year-round pleasant weather.
Living in a tropical or subtropical climate can not only boost your mood but also encourage a more active lifestyle. Imagine waking up to sunshine, enjoying outdoor cafes, and soaking in the beauty of coastal views — all while avoiding harsh winter conditions.
Cultural experiences and community
Living abroad is also a gateway to experiencing new cultures and communities. The opportunity to immerse yourself in a different lifestyle is not just enriching; it can invigorate your spirit. Engaging with locals, trying new cuisines, and participating in cultural events can enhance your social interactions, preventing the isolation that some retirees feel. Many countries welcome expats and have established communities, making it easier for newcomers to find friendships and support networks.
Travel opportunities
Retiring abroad opens up a world of travel possibilities. Being based in a new country can allow you to explore nearby regions much more easily than ever before. Weekend getaways to breathtaking landscapes, historical sites, or vibrant cities become simpler and more affordable. Plus, with budget airlines and diverse transport options, your adventurous spirit can thrive during your retirement years.
Summing it all up
Retiring abroad offers a unique blend of affordability, warmth, culture, and travel opportunities, making it an attractive choice for those with limited savings who still desire a fulfilling lifestyle in their golden years. By considering this path, you not only escape the confines of your old routine but also embrace new experiences that can enrich your life. So, why not take that leap? Your dream retirement awaits just beyond the horizon.
Want more tips on living in high-quality, lower-cost-of-living (LCOLs) areas like the Caribbean?
Check out my buying guide below:
