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The dream of retiring to some beautiful, often tropical, paradise is undoubtedly one of the most common fantasy-aspirations existent. Of course, those same aspirations are generally dismissed after a moment’s indulgence as unrealistic and life goes on. And that consideration of expatriating somewhere exotic and amazing for one’s golden years is considered an unrealistic pipe-dream because the assumption is that it would simply cost too much to actually do so in real life. However, the encouraging reality is: retiring overseas is not only far more monetarily viable than a lot of people tend to think, it can actually prove a shrewd financial move!
The Vacation Holiday Costs vs. Relocation Costs Fallacy
Chances are you’re aware that there are any number of places in the world where essentials cost considerably less than they tend to in North America and Western Europe. Anyone who’s done a fair amount of traveling or even taken a single trip to a country with a lower cost of living has experienced the, “I can’t believe this item/meal/service/lodging is so inexpensive!” jolt of money-saving joy. For whatever reason, though, there’s an accompanying semi-conscious paradoxical belief that while the strength of the dollar, pound or Euro is strong against the local currency, that just wouldn’t really translate into a less expensive relocation and living there would be a different matter.
The fact is- not only is that not the case, often the prices you’re being charged as a tourist or visitor are higher than those you’d pay as a savvier local. In the Central or South American, Asian, African etc. country one retires to the process of relocation can account for the bulk of monetary output involved in retiring. Although any post-retirement relocation is going to cost you a little bit.
Employment
Another concern is the prospect of finding a job overseas, particularly when moving somewhere in which the first language isn’t the retiree’s native tongue. Believe it or not, being a foreigner and a (presumably) English-speaking one can prove a benefit in securing work overseas. If you were drawn to whatever place you dream of retiring, those from your culture, or a very similar one, were too. That means that there’s going to be at least some tourist traffic. And tourist traffic means a whole world of business catering to that crowd and therefore looking for employees that can communicate comfortably and easily with their visitors. Restaurants, bars, hotels, shops, guide and tour services, etc.
There is also a fair chance that your former government has at least some presence in your newly adopted home. If you did decide upon moving to your dream-come-true retirement, just look up the job openings listed by your current government there. Of course, there’s also the option to look for work in the foreign equivalent of whatever position you held back home, and there’s always the possibility of jobs you wouldn’t have considered. For instance, I have a number of friends who’ve retired to Asian nations and all of them, literally all of them, have told me that they’ve been offered positions as teachers and models. Any number of businesses in foreign countries are looking to cast a diverse crowd for ads, company photos, brochures, etc., just like they are in your home country. And English teaching is probably the single most common job English speakers hold overseas.
Investment
Overseas investment can be really exciting. If you happen to be a British pensioner, for instance, recently overseas investment through QROPS (Qualified Recognized Overseas Pension Schemes) have topped £2.6 billion and its projected that those sorts of investments are going to increase a staggering 2700% in the next few years. Retirees and business people of other nationalities and situations have likewise been investing overseas in ever-increasing numbers.
Unfortunate as it is that the opportunities were created this way, investment in the European nations hit hardest by the recent Great Recession has increased immensely. Real estate and property investment in particular has skyrocketed in many of the Mediterranean states like Greece, Cyprus, Italy/Sicily and the places surrounding them. Because of the crash and the diaspora that’s followed, a great portion of the population has emigrated, leaving an enormous quantity of real estate inventory, often in beautiful seaside resorts, much of it selling for a literal fraction of its price a few years back.
Obviously, before you make any choice you should consider your options thoroughly and carefully and everyone’s situation is different, but the more universal lesson to be taken from this is: an overseas retirement is not necessarily out of your reach. And as mentioned – it might even prove a great financial decision.
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Personal Capital lets you see all of your accounts in one convenient place. Sign up now for free.Author Bio:
Mario Vitanelli strives to be a well-informed political enthusiast and global-financial expert. When he succeeds, he’ll be sure to let everyone know. In the meantime he works with QROPS Group and writes on international finance. When not behind his keyboard he enjoys cooking and traveling with his family.
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