If you’re like many people in Northern Illinois, you dream of retiring to Florida or Arizona to enjoy warm winters. However, both states have their challenges. Arizona has become increasingly unaffordable, and its water shortages and unbearably hot summers can be significant drawbacks. Florida, on the other hand, faces hurricanes almost every year.
For a long time, I thought these were my only options—until a friend retired and moved to Panama. Then, during conversations with a couple of high school friends, I discovered they were planning to retire in Thailand and Portugal.
After visiting our friend in Panama, I saw the many advantages of retiring abroad. However, moving to another country is a major decision and requires careful consideration of various factors. Here are some key things to think about:
Cost of living: One of the main reasons people move abroad is the lower cost of living. But are the savings worth the move? Have you accounted for all expenses, including visits back home to see family? For example, our friend in Panama lives in a gorgeous two-bedroom, resort-style condo on the beach for just $1,500 a month — much cheaper than in the U.S. She also finds food, healthcare, and transportation to be significantly more affordable.
Visa requirements: How easy is it to obtain a visa for the country you want to move to? What benefits does the visa provide, such as access to healthcare? Are there limits on how long you can stay? Some visas may require you to invest a certain amount of money, meet an age requirement, or even hire a lawyer for the application process. Research each country’s visa requirements to determine where you’re eligible to move.
Language barrier: If the country you’re considering has a different primary language, how will you communicate? Are you comfortable using translation apps, or are you willing to learn the language? Will you live in an expat community where many people speak your language? For example, our friend in Panama doesn’t speak Spanish but gets by using a translation app and interacting primarily with English-speaking expats.
Healthcare: As we age, healthcare becomes a top priority. The availability and quality of healthcare services will depend on where you move. Do major medical centers exist nearby? Are the doctors qualified and able to communicate in English? What is the cost of healthcare, including dental and vision services? Will you be able to purchase affordable health insurance? In Panama, our friend lives 90 minutes from a major medical center affiliated with Johns Hopkins. A specialist visit, including lab work, costs about $80—much less than what she paid in the U.S., even with Medicare.
Safety and security: How safe is the country you’re considering? Can you move about freely, or will you be restricted to gated communities? Are the police reliable, or do corruption and bribery pose concerns? Is there political stability? Research the safety of your desired destination thoroughly. Just as we avoid certain areas in cities like Rockford or Chicago, the same principle applies when choosing a retirement spot abroad.
Transportation: How accessible is your new home? How far will you be from family, and how expensive will it be for them to visit or for you to travel back to the U.S.? Will you need to buy a vehicle, or is there reliable public transportation? If driving is necessary, will you need to obtain a local driver’s license?
Community: Will your new home be in an expat enclave or a small, isolated village? Consider whether you’ll be able to join a church, community group, or volunteer organization to connect with others. Think about your hobbies and interests—will you be able to continue them where you move?
Weather: While warm winters are appealing, research the year-round climate. How hot or cold does it get? Does the area experience natural disasters, and how well-prepared is the government to handle them? Is there a rainy season, and how might it affect your lifestyle?
Moving to a foreign country for retirement can be an exciting and cost-effective choice, but it requires thorough planning. You’ll need to evaluate your finances, research destinations, and perhaps even visit several places before deciding. From what I’ve seen during my travels, retiring abroad offers many benefits: reduced costs for housing, food, and healthcare; opportunities to meet people from around the world; and the freedom to choose your ideal climate.
Where will I retire? I haven’t decided yet. Every time I visit my friend in Panama, I’m more enchanted by the lifestyle. I also love the beaches where my brother lives in Brazil and feel a deep connection to Portugal, where my ancestors came from. It’s time to start asking these questions, planning, and visiting potential retirement destinations to find my favorite.
Silene Walters is a CPA, the owner of Walters Accounting Inc in Stillman Valley. When she is not preparing taxes she travels with her husband George and shares her experiences on https://www.facebook.com/dreamoftraveling