Retiring abroad is a goal of many soon-to-be retirees, but there’s a lot to consider before doing it.
Luckily, it can be quite affordable to retire abroad — sometimes even cheaper than it would be in the US. There’s a lot to consider before making the leap to another country and leaving your life here. You’ll have to navigate every part of daily life in another country, from the grocery stores to the healthcare system.
But plenty of expats say it’s very possible. Here are five pieces of advice from people who have retired abroad to make your experience smoother.
1. You’ll need to figure out the healthcare system in the country you plan to live in
Retirees Dan Prescher and Suzan Haskins wrote a book about retiring abroad on a budget and live in Quito, Ecuador.
They caution that it’s not possible to use Medicare outside of the US. “Some people keep Medicare and return to the States if they have any major medical issues,” Haskins said. “But most people decide to get healthcare coverage in the country where they decide to move.”
Instead, they suggest getting healthcare coverage in the country where you plan to live, and researching the country’s healthcare system. Luckily, in their experience, Prescher says it’s “very low cost” in Ecuador.
2. Plan to rent your first home outside the US
When it comes to living in another country, your first instinct probably shouldn’t be to just buy a home. Like in the States, it’s a good idea to take the time to get to know the area you want to live in.
“You may end up loving the city, but not liking the neighborhood you’re in,” Prescher says.
Renting in retirement may not be what many people imagine for their golden years, but it’s become more popular in the past few years. And it can help give you the flexibility you need when settling into a new country.
3. Expect change, but know that day-to-day life will be largely the same
Edd and Cynthia Staton retired to Cuenca, Ecuador in 2010, and have found it a far more affordable place to live than Las Vegas, Nevada, where they lived previously.
It wasn’t a tough transition for the Stantons because, they say, life is largely the same, just more affordable. “People think of this retiring abroad or living abroad thing as such an exotic experience,” said Edd. “But daily life within these walls isn’t much different than it would be if we were in still in Las Vegas or if we were in Paris.”
While there are differences, they say that the biggest changes are mainly universal about retiring — they have more time, less stress, and a slower pace of life.
4. If you’re not ready to fully retire abroad, long trips are a good alternative
If you’re not ready to put down roots anywhere new yet, don’t have the money to permanently move, or just simply want to do something different, long-term travel is a popular option among retirees.
Retired couple Joe and Karen Stermitz decided to take their retirement on the road in an overlanding vehicle, traveling South and Central America since 2017.
While their retirement doesn’t have them staying in one place, they have the flexibility to go where they want, travel affordably, and stretch their budget.
5. Make a plan that includes the long term
Jim and Fernanda Dorsey planned to retire abroad and travel around the world. They sold their Glendale, California home to do so, and set out to travel Europe.
And while they had a two-year plan to travel, they wanted to plan for the long term, too. So they kept the money from the sale of their home in a CD, where it would be untouchable while they were gone.
For them, the cash is a security blanket for their next move, and a long-term plan as well. “We will still have this money, and we will be able to buy a house again. You can always buy another house,” Jim told Business Insider.
