Is Retiring Abroad The Right Option For You?
Posted on: 11 September 2014 by Lindsay Edwards
When you come to the end of your working life and are facing retirement, a lot of options will be staring at you as you wonder how best you can enjoy the upcoming beautiful years. One such option is whether to ride off into the sunset like other retirees did. Each year thousands of retirees pack their bags to any of the choicest locations around the globe. All of them have their reasons, but do they all achieve their aims? Is retiring abroad right for you?
Why do you want to retire abroad?
Like it or not, your retirement years are as important as your working years. This is because whatever savings you have amassed during the course of your work life can be easily lost with one wrong decision. Thus, you need to carefully look at your motivation for moving abroad. If your only reason for moving abroad is to buy a home cheaply or enjoy lower cost of living, recent evidence suggests that you may be in for a rude awakening when you land in your location of choice.
House prices have continued to climb steadily across Europe and the rest of the world – same with the cost of living. Therefore, when you consider the fact that some of these locations have a relatively unstable property market, it may be more beneficial to spend that money in a UK property market, enjoying some of its best years in a while.
Who should retire abroad?
There is no hard and fast rule to this but it basically boils down to preferences, finances and family. Assuming all your children are grown up, you spend 90% of the year alone with your partner, your finances are healthy, and you find the British weather increasingly annoying, or maybe you just want to enjoy a new and pleasurable experience etc., you can seriously consider going abroad.
A clean financial bill of health means you won’t feel the full bite of rising costs of living in some retirement locations. With your children completely flown the nest, it means you have very little family commitments to worry about.
It is true that house prices are on the rise. However with a good mortgage company, you can work something out. All you need to do is figure out your monthly mortgage with the help of a mortgage interest calculator to see if your investment will work out in the long run.
It is true that cost of living is rising, but in countries like Spain, Italy, USA, Turkey, Portugal, France and Cyprus (cheapest to costliest), it is still cheaper than what is obtainable in the UK. If your preferred location isn’t on this list, you may have to re-think your plans.
Retiring abroad is a great experience but you need to be sure you have answers to some important questions.
- What will happen to your home here in the UK?
- Are you ready to learn a new language?
- Will your health be taken care of properly without incurring huge costs?
- Will your new location have the vital amenities you need for day to day living?
- Will be able to sell off your property when you want?
- How easy is it to travel back to the UK on short notice?
- Will you be able to drive in the new location?
- What will happen to your pets?
If you can answer all of the above questions and you already have a strong conviction, then retiring abroad is most likely for you.
Photo Credits: yourescapetoecuador.com