Many of us dream of retiring somewhere warm, sunny, or by the sea. There are certain logistical considerations that must be accounted for, but retiring in an exotic destination is often easier than many people realize If retiring overseas is more than just a pipe dream for you, you’ll want to take the following factors into consideration.

Comparing Locations

Adventure and curiosity are certainly reasons to move abroad. Yet for many retirees, the cost of living also plays a large role in the decision. The cost of living is far lower in countries such as Mexico, Argentina, or Cyprus. This means that your retirement fund will last longer and provide you with a higher standard of living than it would at home. Comfort and safety are also important. To choose the ideal location, you’ll want to think about standards of healthcare, the availability of support networks for foreigners, and the country’s political situation. It’s a good idea to visit on more than one occasion before making any decisions, and research all options carefully.

Tax Implications of Retiring Overseas

When you move to a different country, your tax situation could become more complicated. You will need to determine how your residence position will be determined, so that you can file the appropriate taxes. The UK government has proposed new tax legislation regarding the definition of tax residence, but this has yet to pass. Americans are required to file taxes at home no matter where they live, and the country you move to will have its own tax laws that must be complied with. Because taxation can be so complicated for expats, it’s a good idea to sit down for a meeting with a tax advisor such as those at Lombard Odier before moving overseas.
Financial Management Abroad

Your state pension may be payable into an international account, which is often enough to meet residency visa requirements in the country of your choice. It’s advised to open up your international bank account before you move, so that you can make your arrangements ahead of time to have your pension transferred directly into that account. Be sure to find out whether this will incur additional fees.
Retirees living abroad will also need to think about managing investments and other assets. You could move your investments to an offshore fund. It’s also possible to move your investments and assets to the destination country that you have chosen. However, you’ll want to take the stability of their currency into account. Always look into any tax implications of these moves before you take action. This is another situation in which it’s strongly advised to speak to a professional at a firm such as Lombard Odier for assistance.
Have a Backup Plan

Keep an emergency fund in the event that your circumstances change and you decide you are ready to move again. Living abroad can be a delightful way to spend your retirement years, but it does also involve a serious change of customs and routines that is not for everyone. You’ll want to make sure that if you decide you want to move home at some point, you’ll be able to.

With a little bit of foresight and financial planning, you should be able to set your retirement plan in motion and live out the rest of your days on a sunny beach with like-minded souls.