Many people dream of financial freedom when they retire. However, the rise in the cost of living has put a lot of those dreams in jeopardy. When you are on a fixed income and rely on passive income since you are no longer working, you will need to make sure that the money lasts long enough for you to be comfortable in retirement. This is why a lot of people retire in a low-cost-of-living country.
The warm weather and outdoor lifestyle of many popular retirement destinations can help improve mood and reduce stress, while the lower cost of living may allow people to afford healthier food and an active lifestyle. Retiring abroad can be a rewarding and exciting experience, but it’s important to do your research and carefully plan your move to avoid common mistakes. In this article, we will go over many of the mistakes that you need to try to avoid.
1 – Not planning for healthcare
Healthcare is an important consideration when retiring abroad, and it’s important to research the options available in the country you’re considering. Some countries have universal healthcare systems, while others may require you to purchase private insurance. It’s also important to consider factors such as the quality of care, cost, and availability of English-speaking doctors.
Don’t assume that your existing healthcare coverage will be sufficient – make sure to research your options and plan accordingly. In fact, it is very common to need to purchase a global insurance policy before moving. Some countries will require that you have one in order to get a visa to retire there.
In addition, it’s a good idea to familiarize yourself with the local healthcare system and understand how to access medical care in case of an emergency. This may include learning about the location of the nearest hospital or clinic, as well as any cultural differences in the healthcare system that you should be aware of. By planning for healthcare, you can ensure that you have access to the medical care you need and avoid any unexpected medical costs or disruptions to your care.
2 – Not researching the cost of living
One of the biggest mistakes people make when retiring abroad is not properly researching the cost of living in their chosen destination. It may look affordable on paper, but when you want to live with the same standard of living that you are used to, then the costs rise and the savings that you expected may not be there.
It’s important to consider factors such as the price of housing, groceries, healthcare, and other necessities to ensure that you can afford to live comfortably in your new home. Don’t rely solely on online estimates or averages – try to get a sense of the real costs by talking to expats or locals and visiting the area in person if possible.
3 – Not understanding the local laws and customs
Each country has its own laws and customs, and it’s important to familiarize yourself with these before moving abroad. This includes understanding the requirements for visas and residency permits, as well as any local laws and customs that may be different from what you’re used to.
For example, some countries have strict laws governing drug possession, while others may have more lenient laws. It’s also a good idea to research the local legal system and what to do in case of an emergency or legal issue.
Not being able to navigate the system in a new country with another language can severely impact your quality of life. You want to retire in comfort and these problems can make things a struggle.
4 – Not learning the local language
A mistake that can severely impact your ability to enjoy retirement abroad is not learning the local language. By making an effort to learn the local language, you’ll be able to fully immerse yourself in your new home and connect with the local community in a deeper way.
Don’t rely on English as a crutch – make an effort to learn the local language and show respect for the culture of your new home. There are many resources available for learning a new language, including language classes, online courses, and language exchange programs. By taking the time to learn the local language, you can enhance your retirement abroad and make the most of your new home.
5 – Not planning for emergencies
It’s important to have a plan in place for emergencies when retiring abroad. This includes having access to emergency funds, knowing how to contact the local authorities or your embassy in case of an emergency, and having a plan for how to evacuate or get home in case of a natural disaster or other crisis. Make sure that your travel insurance policy includes evacuation in case of a natural disaster or social unrest.