Transitioning into retirement can be an exciting time; after a life of working you can finally have time for yourself to explore your passions and hobbies freely. For some, it’s a great opportunity to seek out adventure and experience a different culture. If you’re ready to think more about retirement abroad, there are some factors to consider in order to realistically achieve your goal without any unexpected hiccups!
Choosing the best country to retire
So this is the big question - where will you retire? With so many beautiful countries that offer a variety of lifestyle choices, the world is your oyster. You may have a paradise in mind based off of previous travels, or maybe just a more general idea of location. When selecting your new home, think of the day to day aspects such as climate, culture and language, cuisine, cost of living, and medical care.
According to the global retirement index, some of the best countries to retire to as of 2022 include: Uruguay, Spain, Malta, France, Ecuador, Colombia, Portugal, Mexico, Costa Rica, and Panama.
The reasons for these countries being highlighted are friendliness/safety, medical care, climate, living costs, and a range of other factors. However, once you have an idea of location in mind, it’s then necessary to investigate the viability of moving.
Practicalities of relocating
It’s not exciting or glamorous, but there are some practical things that are essential to think about before retiring overseas. It’s necessary to familiarise yourself with the regulations and laws of the country you’re looking to move to, as well as where you’re moving from. Here are some of the key things to consider:
● Visas: Before you can even think about moving, you’ll need to be sure you’re able to get a Visa for the country you wish to move to - and remember the rules will be dependent on the country.
● Taxes: Taxes will also be important to research, and for US residents remember you may still be taxed after relocating!
● Property: It’s a good idea to know your overseas property prospects early into the research process, as depending on whether you’ll be buying or renting, your budget may need to be assessed.
● Travel: If you have family and friends back home, will you be able to easily access airports/ferries to travel, and how viable are they?
● Wills: Another good idea is to seek legal advice for your will, as you may need to speak to solicitors in your destination country.
Do your research on your pension
When it comes to receiving your pension, relocating can have many implications for your pension and taxes. If you’re splitting your time between two countries, remember you can only claim your pension in one. This will also be impacted depending on whether you’re still classed as a resident. For more information, visit your government’s website.
Exchange rates can also impact the value of your pension, so it’s a good idea to keep in the loop! If you want to transfer to a pension scheme in the country you’re moving to, it would be wise to contact a financial adviser.
To learn more about claiming your pension abroad, see here. And don’t forget to notify HMRC and your pension provider!
Get your finances organised
Regardless of whether you plan to live in the lap of luxury or on a shoestring budget, you’ll need to cover living expenses in your country of choice. As part of your research, choose a money transfer provider that can send funds from your home country to your new country as quickly, safely, and inexpensively as possible.
You may even need to make pre-payments or pay in deposits before you even step foot in the country. As such, you can save yourself a lot of trouble by getting set up with an international money transfer provider to streamline future payments, making them quick, easy, as well as avoiding unnecessary charges from your bank. Our transfer comparison tool makes this choice easy. You can rely on us to do the heavy lifting while you contemplate the excitement of a new beginning.
Find your perfect international money transfer provider from our trusted services, and tick one thing off your overseas retirement list!