Challenges You Should Know About Retiring in Two Countries
There’s a saying that goes something like “home is where love resides and memories are created.” Especially if you’re an expat or immigrant who is preparing for retirement, you may be torn between two places where your loved ones live and your most-cherished memories were made. If so, one practical solution could be to split your golden years between the two countries. Does this sound too complicated? You can use these suggestions to simplify things and ensure you get the retirement you deserve.
LAUREN’S NOTE: Remember, retirement doesn’t always equal financial freedom. You also don’t have to be a senior citizen to retire and now retiring overseas is a growing trend. Many of these retirement challenges stem from lack of money. Financial Freedom gives you the freedom of choice. Visit Lauren’s Financial Freedom Journey for tips and resources on how you can get on the path to creating more wealth and fulfillment!
Managing Healthcare Between Two Countries
If you are still preparing for your retirement, you could also factor expected healthcare costs into your savings plan. As Business Insider points out, the average for these expenses can vary by country, so be sure to look into potential costs in the US and whichever other country will be included in your retirement plans.
Healthcare can be a major cost in retirement; it’s why so many seniors choose to take on a part-time job, and there are certainly opportunities you can consider. Dog walking, substitute teaching, and providing child care are jobs people can do in the US and abroad.
By the way, if you are a veteran who is choosing to remain overseas for your retirement, you should also be aware of VA programs that can help offset your healthcare needs. Knowing where to access free care abroad and back home can reduce expenses and headaches.
Buying and Managing Two Separate Homes
For retirees, healthcare expenses can take up a good portion of their budget but so can the costs of their home. Of course, if you are planning on splitting your retirement years between two countries, you may have to factor in twice the amount of home expenses.
If you are still a citizen in your home country and plan on purchasing a home in the US, Zillow says you should know that there may be extra costs and requirements involved. One example is that some countries do not have tax treaties with the US. So, you could end up paying double taxes on your property if you are a citizen of one of these nations.
A savvy tip for covering any extra costs is to rent out your vacant home whenever you are in another country. You may want to hire a property manager to keep an eye on things since you will be so far away, but this can be a good source of extra income even with management fees.
Preparing for Potential Legal and Life Issues
Planning a retirement that involves two countries requires a few extra considerations. An extra step you may need to include is to adjust your retirement savings plan so that you can live comfortably as an expat. This may involve setting up an international retirement savings plan. Fortunately, companies like Fidelity offer a wide range of custom solutions.
No matter the country or countries you’ll be calling “home,” you’ll want to be able to access funds as you transition into retirement. This may involve transferring and/or receiving funds, so research the various transfer services available in your location to handle the transactions. For example, if you need funds transferred to a country like Mexico, Remitly allows for no-fee transfers when you receive $500 or more. Plus, funds can be sent to 21 banks and more than 40,000 pickup locations in that country, making it quite convenient to use.
Travel and passport issues can also be common for retirees who are bouncing between two countries. If at all possible, you may want to look into the benefits of gaining dual citizenship. Also, consider potential drawbacks but know that dual citizenship will indeed make traveling easier and can also allow you to take advantage of social benefits in both countries.
If you decide to retain citizenship in only one country, it’s important to stay aware of any current visa restrictions, entry requirements, or travel advisories. These rules can change with very little warning and you don’t want to end up getting stuck. Most countries have some sort of state department website so that you can check requirements and restrictions at any time.
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Your retirement should be a time to enjoy life to the fullest, so consider splitting your time between your home country and the country you now call home. It’s a wonderful way to make the most of your golden years, so long as you’re smart with planning and preparation.
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Ready to transform or revamp your financial strategy? Check out Lauren’s Financial Freedom Journey for valuable resources, advice, and guides on growing your wealth while living your best life.