April 23, 2013 — Notes: This is Part 2 in our recent series about International Retirements. Part 1 provided our list of the “10 Best International Places to Retire“. Also of note, Part 1 generated an interview request from Radio Kerry (Ireland), which was delighted in Ireland’s #1 ranking on our list. The short radio conversation (Ireland Is Best Place in the World) was fun to do, you might find it interesting to listen to.
If you happen to be on the mailing list for some companies it would be easy to think that an international retirement is your ticket to paradise. One that includes plentiful maids and gardeners, cheap but glorious real estate, doctor house calls for $10, perfect warm weather – all of which is available on a social security income. While that vision might be possible, we read many reports of ex-patriots who regret their move abroad. This article will attempt to present a balanced view of the pros and cons of an international retirement. We have relied heavily on the member Comments made to Part 1 of this series (thanks very much!), and we invite others with experience to join in with additional Comments to this one. Note that for every person who has had a bad experience with a particular country or issue, there is usually someone else with an opposite point of view. Which leads us to our standard advice – before you make any decision about where you live in retirement – visit the location for an extended stay and see for yourself!
Note that in this section and in the Cons we have chosen a representative comment from a member. Know that there is almost always someone else who disagrees!
Live on a Social Security income. From Priscilla: “(Ecuador is great) for single women who can’t survive on paltry Soc. Sec. payments
Improved lifestyle. Thanks mostly to a strong dollar and choosing an interesting place to live, many retirees experience a richer and more interesting lifestyle abroad than they could have in the U.S., Canada, or Europe.
Inexpensive and good healthcare. JaneH: “Europe generally has good health care provided you are granted access to it”. Dave: ” I have several good doctors, had a double cataract/lenes replacement operation done a couple years ago for less than 1/4th the cost in the USA, see a specialist when I want to for about $9.00. That’s not my co-pay, that’s the whole pay at his office in our local hospital. I also have something not many Americans back in the USA have .. my doctor’s cell phone number in my phone, along with his receptionist’s.”
Inexpensive domestic help. The advantages of having inexpensive staff to help with domestic chores is often touted as an advantage of an international retirement.
Interesting experiences. Many members comment about the happy and interesting exchanges they have with their new neighbors.
Warm weather. Mexico, Central America, South America, and much of Asia has better and warmer weather than the northeast or midwest U.S.
Corruption and crime. Paul: “Danger is directly proportional to poverty and we yanks have no idea as to the degree of poverty that exists in these countries”.
Service and bureaucratic nightmares. We have heard many tales of waiting for a year to have a phone line installed, or having to pay off the building inspector to get work done.
Immigration problems. Ron: “Anyone thinking of retiring in New Zealand should start by checking the strict immigration rules related to age.” Holly: “I love that Ireland was first on the list but, as with most countries – you cannot just pack a suitcase,get on a plane and show up at Dublin Airport and tell them you’re here to retire! We lived in Scotland during our early married years and would LOVE to go back there but the UK has strict rules about emigration and the fact that you have to have a certain amount of money deposited in UK banks”.
Being the target. Several said in comments that they felt North Americans were viewed as targets and not friends in various countries. On the other hand, others said that expats who make efforts to learn the language and interact with locals tend to be accepted.
Far from family and friends. Depending on where you move, you might not get many visitors from home – and your return trips will be expensive and time consuming.
Inexpensive and plentiful healthcare. Doug: ” spent 2 years in Mexico near Lake Chapala…..nice spot, local folks are friendly….but the problem, is medical care….sure, the Doctors are excellent, but have little or no experience with older people…”.
Questions only you can answer
What will the healthcare system be like? Will you have ready access to it? How much will it cost, and what is the quality. Will doctors be familiar with your complaints?
Can you be part of the community, or will you stick out? Will you have to/do you want to live in an expat colony? Is the country welcoming to foreigners?
Various. What is the situation for that particular country for security, crime, immigration laws, cost of living, infrastructure and amenities?
Blend in or not? Do you want to make an effort to assimilate, or are you looking for a little America abroad?
Do you have family and friends that you will miss? Glenn: “Unless you have no sibling/children/grandchildren you will want to to visit family and the commute from half-way around the world costs time and $$$.”.
Taxes and fees. Some countries impose heavy taxes that mostly affect foreigners; for example a hefty tax on the sale of your home.
Overpromises. JimyP: “One needs to be aware that there are many companies selling the wonders of Latin America and they are doing so for profit and without regard to your well-being whatsoever.”
Places and countries we didn’t list, that others thought we should have
Philippines. There were multiple positive mentions of this country citing its weather, cost of living, and friendly people. There were also some negative comments. Representative comment from Bonjie: “Low cost of living, nice culture and awesome traditions year-round, great places all over, good cuisine, friendly and hospitable people, English-speaking, fun activities 24/7”
Madeira and the Azures.
Thailand. Warm weather, great beaches, friendly people.
Ghana and West Africa. Anthony: “Ghana West Africa the best place on earth God created almost at the Centre of the world with Gold almost everywhere, diamonds, bauxite, manganese, 12 hours of Sun, chocolate galore, best democracy in Africa, friendly industrious people, great talents in many area, peace loving people.”
Greece. George: “I think Greece the best place by far”.
Sri Lanka (Negumbo). JohnH: “Has a visa program for pensioners. Affordable , modern health care is available. With my modest teacher pension and social security we would be comfortable and able to afford just about anything we would need in either place.”
Vanuatu (cluster of 80 South Pacific Islands). Mitch: “consider Vanuatu, a cluster of 80 South Pacific islands, great climate, friendly people, little or no crime, no income tax, no CGT, no inheritance tax, no property taxes. Low cost of living and housing “.
Chile. Best place to live in South America. Has a strong economy, stable government.
Places to avoid
Belize and the Honduras were mentioned by several people as places to avoid. Likewise some of the countries on our top 10 list had their detractors (and supporters). Those included Mexico (too dangerous), Costa Rico (no bargain), and Croatia (corruption and crime). We recommend you read the actual Comments to our “Top 10 International Places to Retire” to get more perspective.
The next time you read an article or get an email about some incredible international place to retire – stop. Think about the factors discussed here. Ecuador, Panama, etc. might be retirement paradise – but there are 2 sides to every story. Make sure you know both.
Comments? This is the fun part for us, when you share your experiences and opinions. Please let the rest of us know what you think about these pros and cons, as well as the commentary and suggestions on other international places to retire.
For further reading:
MarketWatch- Factors to Consider Before Retiring Abroad
Yahoo Finance: Top Places to Retire Abroad
Topretirements Country Guides to Retirement Abroad