From 2019 to 2022, the number of Americans receiving their Social Security benefits overseas increased from 413,000 to 760,000. With more countries opening up retirement visas, the idea of retiring abroad continues to grow in popularity.
Why are so many people drawn to live in another country?
Don’t miss:
Beyond the novelty of travel and experiencing a new culture, two things stand out when we talk to retirees overseas: cost of living and quality of life.
Laura and Chris Barnett, a couple from Fayetteville, North Carolina, told CNN of their plan to move to Portugal, and cost was a big factor.
“[The U.S.] it’s created a system where even if we have money to cover our everyday expenses – rent, food, travel – all of a sudden there’s this other item called health care. That’s about $1,500 a month, more than our house payment,” Laura said.
She went on to say that they believe they will be able to live on less than $3,500 a month in Portugal while still being able to travel around Europe.
The Wall Street Journal covered a story of six people who retired overseas with savings ranging from $70,000 to $1.8 million. You don’t have to be a millionaire to retire abroad.
One of the couples the WSJ spoke to was Halisi Vinson, 58, and Ricard Crawley, 67, who retired in Lisbon, Portugal. They saved $300,000 for retirement, and after talking to others who had made the move and visiting Portugal themselves for a month, they moved from Denver to Lisbon. Their monthly expenses, which include rent and food, are about $2,600 a month. That’s half of what they would expect in the US
Trending: The average millionaire has 7 sources of income – Here are 3 passive income opportunities you can add today.
Portugal is not the only country where retirees are flocking. Susan Wojcik, 62, retired in Samara, Costa Rica, and is able to cover her expenses with her Social Security check of $1,421.
A retiree living in Spain told the WSJ, “My stress level in Spain is much lower as a result of the lower cost of living and a higher quality of life in general.”
It’s not just healthcare, food and rent that cost less when you live abroad. Many countries, especially in Europe and Asia, have good enough public transport that you don’t need a car. Some countries focus less on consumerism, so there isn’t as much pressure to buy things when you go out.
More and more people are worried that they won’t be able to afford basic expenses in retirement, and many need to continue working well into their 60s to afford health care. If retiring abroad and traveling the world at a lower cost of living is your dream, by all means, go for it.
Moving abroad permanently definitely has drawbacks and red tape to worry about—leaving family in the U.S., taxes, visa application and renewal processes, and other paperwork—but it’s possible.
Whether you want to retire abroad or simply plan a comfortable retirement in the state, a good financial advisor can help you achieve financial stability. Consider arming your financial belt with an advisor who can guide you through your unique retirement goals.
Read further:
“THE ACTIVE INVESTOR’S SECRET WEAPON” Supercharge your stock market game with the #1 “news and everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This article Say Goodbye to High American Costs: Why Retiring Abroad Is the New Financial Strategy for Boomers originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
#goodbye #high #costs #retiring #financial #strategy #boomers
Image Source : finance.yahoo.com
