Have you thought about retirement? If not, why not?
Perhaps you’ve already retired or are approaching/planning retirement? Either the way, everybody thinks about it sooner or later. There is no such thing as ‘too soon’ when it comes to funding retirement and saving money. The key is to know how much you have to spend and find a location that’s affordable within your budget.
Seeing the World on a Budget
One goal many retirees entertain is to see the world after they retire. But often they don’t consider how affordable it really is to move/retire abroad and truly experience life as a resident rather than a tourist. The aim is to have all your debts and/or mortgages cleared and enough money to move to the place of their choice where they find comfort and relaxation. This kind of decision is not an easy one and entails many problems/obstacles. But once you consider the idea you may realize that it is more do-able than you previously thought.
The Major Obstacle- Family
For example many couples the major consideration is family. Of course as a family member you want to see your newly retired parents/grandparents retire comfortably and enjoy the later stages of their lives. Yet naturally the decision to split the family up can be a big one for both parties. Moving away from your family is a sizable decision that’s dealt with in varying ways from family to family. But often it is possible to move from a higher cost country to a lower cost and drastically improve your standard of retirement. And who doesn’t want their parents to have a more comfortable retirement.
Today it is quite possible to fund a comfortable affordable retirement in many places in the world where your Pension or Social Security will easily cover your expenses, including Ecuador, Thailand, and Mexico plus many more for less than $1500/month or about what Social Security pays for one retiree. If both members of the couple are receiving Social Security they can live well indeed and even save enough to make frequent visits back to the states to visit the grandkids. (Or fund trips to visit you).
Financial Considerations of Retirement Living
However there are other factors in retiring abroad, for example initial funding- the capital/initial lump sum required, this can impact where one retires if indeed that is abroad at all. Often by selling your home, eliminating your mortgage and simplifying your life you can find it easy and affordable to relocate to a lower cost country with good infrastructure, perhaps even ocean views or mountain views that you could only dream about at home.
Another factor that becomes increasingly important as we get older is what healthcare is available to the retiree when they have moved. Will there be excellent medical care nearby or is the desired location a million miles from anywhere? These days good healthcare is available throughout the world if you can afford it. Even though healthcare may be expensive for locals… compared to costs in the U.S. it may be ridiculously cheap. Increasingly Medical Tourism (where people travel to a distant location for cheaper healthcare) is becoming fashionable.
Affordable Retirement Living- Medical Tourism
When considering healthcare, you need to consider what healthcare you already have access to and is it going to suit you as you advance in age? You may wish then to travel for treatment. This, like retirement, comes with a whole set of things you need to consider; obstacles, costs, quality and location are but a few. There are a few top places in the world that regularly stand out when considering medical tourism. These places include Beverly Hills- CA, Harley Street- London (UK), Mexico, Poland and India. The latter ones tend to receive clients looking for affordable healthcare in retirement, where as the two former tend to be visited for quality and care reasons. One thing to consider are the Laws for whatever treatment you intend to receive. For example, in the dentistry industry- Across Europe the Association for Dental Education Europe (ADEE) is trying to standardise practises so that the client receives nothing but quality care.
It is not uncommon for people to want to undergo dental treatments after retirement that aren’t directly linked to health issues, these treatments range from everything including cosmetic dentistry (dermal fillers, teeth whitening etc) to root-canals, bridges, and crowns. Other medical treatments might range from facelifts to weight management procedures.
Finding the correct health care and health insurance is vital, so you need to consider your health as the number one priority because no matter where you are in the world your health is key to living a happy second life.
For more information see: Investing for Retirement