I talk about retirement a lot on my blog, there is definitely no doubt about that. Lately, I've explored how much I want to save, possibilities of what I'd be doing in retirement, and so on. Now I'm going to explore where we could possibly live when we do decide to retire.
I've thought about retiring abroad, mainly because I love traveling so much, but for me, I don't think I would/could. I know I don't have children now, but I don't think I could willingly move away from any future family that I may have.
However, I do know that I would love to do some extended traveling. Living in a place for even a couple of months would be great, and the experience would last a lifetime.
I do want to travel after I retire, but not permanently live somewhere. I would love to have somewhere permanent to live near family. Retirement isn't for a long time for me, so some of you might think this is weird to think about. But I do like to somewhat dream of what my retirement will be like!
Reasons why I might not retire abroad:
1. Getting homesick and not being near family.
I get incredibly homesick. Even when I just leave for a couple of days, I miss my dogs. Yes, some of you are probably laughing, but I do miss them. So I can't even imagine what that would be like when I have children and grandchildren and then I have to leave them.
If I lived in another country, I'm sure I'd get bored of it eventually. I'd want to be near my friends, or to be constantly moving to other countries. Just staying in one place with no friends or families wouldn't be for me.
2. New culture, environment, languages, etc.
This one isn't really a negative, but it can be a big culture shock. They always say that it's very difficult to learn a new language when you're older. When moving to a new country, there are many things that you will have to learn. Cultures will be new, languages will need to be learnt and so on. This is something that wouldn't really prevent me from moving though, so maybe this shouldn't be here 🙂
3. Crime rates and the unexpected.
Of course not all abroad places have high crime rates, but this is something to think about. If you are in an unknown place, then you should especially be careful until you learn the ways and behaviors or the place you are in.
Yes, I realize that I don't have many negatives of moving away, and they mostly involve around having to leave my future family.
However, there are many benefits of retiring abroad as well. These include:
1. If you're going to move, you might as well go somewhere awesome.
If I were to retire abroad, I wouldn't choose a place strictly on cost. I would choose somewhere that had a nice beach, friendly environment, etc. and that is the best value. While I do love the Midwest, one thing we are missing of course is the ocean, and the oceans' nice beaches! There are so many places that are very pretty and nice, so moving closer to an exotic beach would be a no brainer for me.
2. Lower expenses and cost of living.
Not all places will have lower expenses than where you currently live, but many countries do offer that. There are a lot of countries in South America and other places where you can live comfortably for around $1,000. This is something that would definitely entice me as well.
Things that you couldn't afford where you live now can also be much cheaper if you retire abroad. You might be able to afford household help and relaxing things such as going to the spa.
In many places abroad, there are many retirement communities full of people just like you, so you don't always feel left out or alone.
3. Medical costs will most likely be lower.
One thing that many people in the U.S. complain about is extremely high medical care. In other countries that you could possibly retire to, the medical cost can be MUCH much less (such as 50% less).
Would you retire abroad?
Have you ever thought about it?
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Pauline @ Reach Financial Independence says
October 18, 2012 at 6:18 amI have met lots of North Americans in Guatemala who just spend the winter there and go back to their country in summer to share time with their family. It could be a good option, and you don't need to own two homes. Many rent a fully furnished flat in Guatemala (about $500 for a luxury condo and $250 for a full time maid), some even come with their RVs. You could spend each winter in a different country and never get bored!
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DC@Young Adult Money says
October 18, 2012 at 6:19 amThere are definitely both pros and cons to this, and I think you hit the big ones. I think the main reason I will not retire abroad is because I want to be close to family. Of course I could always fly back and forth, but that can get pricey. You hit the nail on the head when you pointed out the lower cost of living (some places) abroad. That's the main reason people retire abroad and also a reason why I would consider it.
In summary: I have no idea what I will do when I retire, too far off right now.
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Brian says
October 18, 2012 at 6:24 amThere is a good chance we will retire abroad (or even move abroad before retirement). I was born in Ireland and lived there for a while and have been back a ton. I love the people and the history of the island and know exactly where I would want to move. Of course my wife would want to retire, or move, to Germany and I would be ok with that too. I would have to learn more German than "Keine Deutsch"
Holly@ClubThrifty says
October 18, 2012 at 6:30 amOh, hell yes! We talk about retiring abroad. First, we need to finish becoming debt free so that we can travel more and decide where we want to end up!
It'sso fun to talk about and plan!
John S @ Frugal Rules says
October 18, 2012 at 6:57 amWe've definitely thought of it. There are some pros/cons, but you could end up in a great situation. With the amount we've traveled, there's many possibilities out there that are definitely worth considering if you're able to swing it.
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evencheap says
October 18, 2012 at 7:00 amI will definitely retire abroad. It's just way too cold here. My family can visit whenever they like.
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Allison says
October 18, 2012 at 7:28 amI would take retirement anywhere!
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bluecollarworkman says
October 18, 2012 at 7:45 amNo fricking way, dude! I love my family too much! I want to stay in the States and settle into old age surrounded by the city I know and family I love. You mentioned this of course, so you know what I'm talking about. 🙂
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SavvyFinancialLatina says
October 18, 2012 at 7:46 amI would love to retire abroad! It would so awesome. I love immersing myself in new cultures! It would be an adventure. I'm hoping to live abroad on different work assignments in the future.
Catherine says
October 18, 2012 at 7:54 amAs it stands right now, we are much too close to our family to retire abroad, I know I couldn't leave them. Having said this who knows where our life will be by the time we retire. Maybe our kids will be living somewhere cool and we will want to be close to them? I have 2 patients I see at work and admire. They worked 2 years longer than they originally wanted to for retirement but took those 2 years worth of salaries and saved to do nothing but travel. They go on at least 1 large trip every year (we're talking 4 weeks in india or africa) They're courageous. So I think I would rather have a home base but enough money to travel the world.
Jason Clayton says
October 18, 2012 at 7:54 amI'm looking forward to living abroad, hopefully in the next 5 years. I haven't thought too much about retiring abroad, but I will certainly consider it. I love the US, but also love being overseas – there is so many amazing places in this world, and it is hard for me to think about living in only one country.
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Lance @ Money Life and More says
October 18, 2012 at 8:22 amI don’t think I would but I can’t rule it out.because it is so far away from now. If you want beautiful beaches come visit Panama City Beach and Destin Florida 🙂
bogofdebt says
October 18, 2012 at 8:26 amI think the main reason I won't retire abroad is I do get homesick and would want to be close to my family. Not that I wouldn't travel though! (you know, especially after I'm debt free!)
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DebtsnTaxes says
October 18, 2012 at 8:52 amI've thought about moving abroad when I am retired and like you I have a long time before that even happens. My main con to it would be being so far away from family. If I didn't have any family then it would for sure be an option. I get homesick after like a week or two away. The wife is like you. She hates leaving the pets behind and actually cries when we are leaving.
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Sean@OneSmartDollar says
October 18, 2012 at 8:55 amI don;t think I would want to just because of family. Instead I plan on spending my retirement traveling to different places.
Little House says
October 18, 2012 at 9:05 amI like to think I'm open to retiring abroad. The lower cost of living is definitely a draw and the different culture would be exciting. However, when I'm 65 or 70, I just don't know if I'd have that kind of adventuresome spirit to actually go through with the move. If I ever got serious about the idea, I think I'd transition over to the county and culture in my 50's and work for a few years to make friends and settle in.
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therandompath says
October 18, 2012 at 9:13 amI would love to travel abroad, but actually putting down roots abroad is a different story. I'd miss my family too much. But when I do retire, I really want to live by the ocean. As close as possible to it 🙂
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Lisa @ Cents To Save says
October 18, 2012 at 10:13 amWhen I retire, or even before I would like to travel abroad and visit a whole list of countries. I don't think I would like ti love abroad because I would miss seeing my family.
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moneyaftergrad says
October 18, 2012 at 10:14 amMy mother-in-law (basically) was dating a man who told her he had no option but to retire in another country. I think it's great to have the option, but I definitely do not want to be stuck by not saving enough ! (Though I know this won't be a problem for me). I wouldn't personally do it I don't think, but I would travel a lot as a retiree!
Frugalista Married says
October 18, 2012 at 10:20 amI've thought about it more recently then ever probably because of watching too much House Hunters International! I do actually think it would be pretty cool to that or like you said just live for an extended time somewhere to experience that. I think I'd miss the USA if it were going to be a forever things.
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Thomas S. Moore says
October 18, 2012 at 10:54 amI think retiring abroad is a great option and you pretty much listed to main pros and cons. I have no problem being away from family though this would be difficult for the Mrs. We actually talked about moving to Spain(country side not big cities) and living there when we retire. Since she is from Africa if would mean leaving one home and being closer to her birth place. And I don't think nothing is wrong thinking about retirement plans now. Better sooner then later in my opinion.
Lisamarie says
October 18, 2012 at 12:05 pmI will retire anywhere that I can enjoy that pool every day.
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Liquid says
October 18, 2012 at 3:06 pmI'm not planning to retire any time soon either. One reason I probably wouldn't want to retire abroad is because I would not receive any of the social security and other government support that I've already paid into through my entire working career. I will certainly travel to many countries and take long vacations once I stop working, as long as I still quality as a permanent resident in my home country :0)
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Budget & the Beach says
October 18, 2012 at 4:13 pmI'm probably the closest to retirement than a lot of commenters, and I still have no idea where I'll retire. I do love California, if it wasn't for the cost of living problem, but who knows where I'll be in that time. I don't think I've ever really considered retiring abroad though, but if it happens there is probably a good reason for it, like I meet an awesome french guy with a villa or something. lol!
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Paige says
October 18, 2012 at 5:24 pmTough question!
I know it's such a smart thing to do because cost of living is HUGE. You can retire so much earlier or live a higher quality of life by being willing to go where your dollar will take you further.
At the same time, I am so attached to my Hometown where I have lived my whole life, even though I hate the weather there. And I love being close to family. So, I'm quite torn.
plantingourpennies says
October 18, 2012 at 6:46 pmMy cousin's grandparents had what I thought was the most amazing retirement. They were really into hot air ballooning, so they would travel with the ballooning season – about 1/4 of their time was in Mexico, with the remaining time in the US. They either rented or had houses in each location, and traveled from each with the dogs in a minivan with the balloon trailer hitched to the back. They did what they loved, got to spend about 6 mos/yr with their grandkids (who lived on on the spring/fall part of their ballooning path) and didn't spend crazy amounts of money. Or any crazy amounts more than ballooning already cost. While we don't balloon, I can envision a nomadic retirement like that for us where part of the year might be international, part domestic.
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RichUncleEL says
October 19, 2012 at 10:47 amI thinkg the same way, or at least about retirement a lot. I want new expereinces but only for maybe 2-3 weeks. I couldnt be gone for too long unless I fell in love with the area and the people.
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kimateyesonthedollar says
October 21, 2012 at 6:25 pmI don't think I ever would retire abroad, but never say never, i guess. It would probably have to be somewhere warm, English speaking, and have a low cost of living. Sounds like Southwest Colorado to me except for the warm a few months out of the year!
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Anne @ Unique Gifter says
October 22, 2012 at 10:05 amWe have family friends who are in the process of retiring to Uruguay. I've traveled there before and I can definitely understand why it's such a big destination for ex-pats! Low crime, universal healthcare, decent education, low cost of living, posh areas, nice climate… sounds pretty darn good to me. I definitely plan to visit at some point!
adahat1 says
October 23, 2012 at 6:02 amI do not want to just retire abroad. I will soon be living life abroad! Not sure if I will like it or not but I definitely want to try. This includes, having my kids spend a year/half year in a school in a foreign country.
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