Thinking of retiring overseas?

FRIDAY, MAY 11: How you picture yourself during your retirement years usually begins with a vision of some place beautiful, interesting, and more importantly, affordable.

That place could even be overseas. But there are many steps between the spark of an idea and getting on an airplane.

The question is “how do you turn that vision into reality and what research do you need to conduct in order to decide whether your retirement plan is viable?”

Immigration requirements for retirees

It is important to do your research and determine whether the country you wish to move to offers a retiree programme which allows you to not only become residents of that country but earn an income.

These programmes tend to limit you to reside only, not work part time or draw from government benefits.

Healthcare

Determine whether you will need to purchase health insurance or if your country of choice offers national insurance to its residents.

More importantly, will you be eligible for coverage under that country’s national plan. Ascertain what type of medical system they offer and the medical facilities available.

How much money you have to retire on?

You will need to know how much money you will have at your disposal to support yourself in retirement. Calculate what you would have if you sold everything, including your home, car, collectibles, and so on.

Next, work out how much you would need to set yourself up in your new retirement place. Verify that you will still be entitled to your monthly retirement benefits, i.e. pension, social insurance, etc, if you move to another country.

Most times your new country of residence will require you to deposit a minimum guaranteed amount into your new bank account as proof that you can support yourself.

Consider housing options

Wherever in the world you decide to retire, don’t be in a hurry to purchase real estate.

Consider renting accommodation for at least three to six months.

You won’t be able to get a true feel for a place until you’ve spent at least a few months getting to know the neighbourhoods, the day-to-day costs of living and transportation options.

Sometimes it makes better sense to rent on a long term basis especially if it is too expensive to purchase a property or cover related costs.

Communication

Figure out whether you are going to have language challenges.

Are you moving to a country where English is not the primary language?

If that’s the case, take into account how you plan to overcome the challenge. 

Would you take a course prior to arriving or would you learn the language once you get there?

Immersion sounds great in theory, but won’t be easy when all you can do is communicate with your hands when trying to setup utilities, read a rental agreement or catch public transportation.

Tax implications/ benefits

Find out if there will be income tax requirements or filing requirements in your new country of residence.

If you do fall under a retiree programme, ask if you would be exempt from import duty expenses should you ship some of your household effects.

If you are planning to retire, you need to retire with a plan. Working with a retirement planner can help you receive an independent, objective opinion on your current financial situation and what you need to improve on in order for you to reach your retirement goals.

Carla Seely is a Senior Wealth Manager at AFL Investments Ltd.  She may be reached at 294-5712 or [email protected].