Have you always dreamed of retiring abroad? This is something which many people plan to do as they get older and some even go ahead with it. There are many advantages to moving abroad when you retire and this is what makes this idea so appealing. But when you retire abroad, you’ll usually find that you are leaving a lot of your family behind.
Of course, when you retire abroad you are also faced with some financial risks. Here, we are going to discuss some of these. Keep reading to find out more.
Here are the financial risks you face when you retire abroad:
Cost Of Living
One of the financial risks that you face when you retire abroad is a difference in the cost of living. In the UK, the cost of living might be different from what you’ll find in countries like Spain or Italy. You might find that your daily groceries cost more while the cost of your monthly rent is cheaper. It is very important that you do some extra research on the overall cost of living in the place that you would like to retire. You’ll be living on your pension and so you’ll need to be able to live comfortably.
Another financial risk that you face when you retire abroad is not getting all of your pension when you should. There are some taxes imposed by some countries on ex-pat pensions and this is something which can be very disappointing. Luckily, companies like Tailor Made Pensions offer advice on this topic and can help you to get your pension as an ex-pat. Make sure to consider this in order to get all of the money that you deserve.
When you retire abroad, you’ll usually find that you are leaving a lot of your family behind. While this is something that you’ll get used to overtime, you’ll still want to make sure that you can visit them when you can. This is something which is going to eat into your budget and so it is a financial risk of moving abroad. Depending on where you move, you’ll need to pay for flights a few times a year and a place to stay when you get there. This is something to consider when choosing where you’ll retire abroad.
Cost Of Healthcare
Finally, you might find that your health will add further risk to your finances when you retire abroad. When you get older, you are more prone to health conditions and this can be expensive if there is no free health care system in your new home. While some countries like Spain will allow residents who are working to receive free healthcare, this is not something which is true for all destinations. Make sure to consider this, especially if you have some pre-existing health care conditions.
As you can see, there are plenty of risks associated with retiring abroad. However, all of these risks can be managed carefully and you can still be in a financially stable position when you move abroad in the future. Make sure to take on board our advice and this should help you to have a happy and healthy retirement.