The vast majority of Americans have no retirement savings at all. Even senior workers aren’t really well padded to be able to retire. With the increased cost of living and the hassle of putting together enough sum for retirement, retiring abroad is one of the most popular things amongst Americans now. It’s an option to live comfortably with the funds they have in a place with much warmer weather, quality healthcare, and a chance to spend time in an exotic locale – which perhaps for many serves as a chance to make up for all the vacations missed. According to the SSA, almost a million people are collecting their Social Security Benefits while living abroad.
Managing Money as an Expat
Technology makes it a whole lot easier for expats to make regular financial transactions. All retirees can arrange to have their benefits along with any other sort of additional income deposited into their account.
It’s a great idea to have an account in the United States, especially if you return to the country a lot. Note that in some cases, if you are living abroad and don’t have an American address, there may be certain bureaucratic complications.
The Patriot Act was created to halt financing of international terrorists, and with that many banks have closed all expat account services. However, as a retiree, you may be able to get around this if you keep a United States mailing address.
The United States Treasury also requires you to file a report of FBAR if you make use of your foreign account to pay for expenses. The FBAR becomes mandatory if your funds go beyond $10,000 USD.
Many countries have their own requirement for American expats. To qualify for residency, many countries regulate that you earn a small amount of income on a regular basis. That being said, for many nations owning property is all they need.
A great example of a popular retirement destination for many expats is Mexico. However, the Mexican Constitution does not let foreigners own property within 62 miles of a border and 31 miles of a coastline.
Check out some of the critical findings of retiring in different places around the world.
Most don’t know this, but over a million Americans reside in Mexico. The cost of living abroad in Mexico is favorable thanks to the weak peso against the American dollar. On top of that, the Great Recession has not left its impact on the country, and the housing market is proof. Rents are super low, healthcare reasonable, and there are tons of discounts and benefits for seniors for their daily expenditures.
Malta is all about that gorgeous weather, the perfect scenery, and the fact that a couple that retires splendidly needs to spend only $2,700 every month. One of the great things about living here is that English happens to be one of the two official languages of Malta. Also, it is only 3 hours away from Paris by air, and three hours away from Sicily.
It may be one of the top vacation spots in the world, but this place has many people settling down. Living abroad in Costa Rica allows for an adventurous lifestyle via cheap rentals. The locals are friendly, and the beach towns are the perfect places to find a house. Costa Rica has been dubbed one of the safest countries in Latin America. The area lies in the tropical zones, which means warm weather all year round.
The top cities in Spain perfect for retirement include Barcelona, Granada, Madrid, Malaga, and Valencia. Spain tops the list when it comes to the best infrastructure in places you can retire abroad to, and it is also one of the best places that offer a mix of healthy lifestyle and entertainment.
Lisbon happens to be one of the oldest cities in Europe, which means if you are into rich culture, heritage, and beautiful works of art, this may be just the place to spend your retirement days. Retiring in Lisbon as a couple can cost around $1,700 USD in expenditure per month.
Nicaragua has many times been considered the next Costa Rica. There is warm climate all year round, and enough of the famous award-winning chocolate and coffee for everyone. For a couple retiring here, it can cost around $1,500 per month.
Ecuador offers a range of climates. You can settle in any region that suits your preference. The best thing about the country is that there are tons of discounts for people over the age of 65, which decreases the cost of living to an extent. The monthly cost for a retired coupled residing in Ecuador would amount to no more than $1,500.
Cambodia is the least expensive place to retire abroad and settle in. If you budget $1,335 in expenditure per month, it will help you cover your basic needs and any other miscellaneous spending you make too.
My name is Rachael Everly, a passionate lifestyle and tech blogger. I’m a guest writer at FORBES and a featured contributor at Inman.com, BCSEA.org, TheRichest.com, Sustainable Brands (currently associated with Ascent Leadership Resources), and Leadership Consulting and Training firm in Spartanburg, South Carolina, for their blog operations. You can keep in touch with me here: @RachaelEverly
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