There are Challenges to Moving Abroad during Retirement

I've suggested that retirees can save a bundle by moving to a foreign country -- an idea that #9 on my list of ten most-hated money saving tips. But here's a piece from the Wall Street Journal that says retiring abroad may not be a paradise. The details:

Retiring to a foreign land can present a number of challenges, from opening a local bank account to avoiding being gouged for services. And while many countries, from Belize to South Africa, offer inducements to attract foreign retirees, making sure you've got health insurance can be a big problem.

Moving abroad also means leaving behind family and friends, though Internet communications can shorten the distances. There can also be safety and security concerns, depending on where you end up.

Ok, no one said moving would be completely free of sacrifice. Of course there are going to be compromises and things you don't like. Otherwise, it would cost MORE to live in these places.

But there are some indications that the savings aren't what is advertised either:

Roger and Jennifer Miller retired to the Caribbean nation of Dominica in 2005, expecting that meeting residency requirements "would be a cakewalk, and it wasn't," says Mr. Miller, 61, a former analytical chemist in St. Louis. What's more, he says, "expenses you expect to be cheaper often aren't" because locals expect Americans have money and charge more for services. He says life in Dominica "is about two times more expensive than I was led to believe when we started asking around down here about retiring here."

The article goes on to detail challenges in health care, housing, banking and the like. No, it's not easy, but at the rate some Americans are saving for retirement (which is very little), they don't really have much choice.

BTW, I see a business opportunity developing here. What if you were a local native of Dominica (or like country) and opened a business of helping Americans move to your country and set up their lives? Seems like you could add a lot of value and make the transition much easier -- and make a pretty good income at it to boot.

FYI, here's a related discussion -- this one centered on the issues associated with moving your family abroad for a career move.

Comments

[Minimum Wage]

Why should Americans who DON'T have money get charged more just because the locals EXPECT them to have money?

What kind of screwy business model is that?

[fathersez]

There is money to be made in this business. Malaysia has a reasonably well organised "Malaysia my second home" project that helps people seeking a cheaper place of retirement.

Of course, for some would say this is a great idea, while others may have had not so good experiences.

The MInistry of Tourism handles this. Those interested may check out this web page.

http://www.mm2h.gov.my/

[Douglas]

Fathersez, Thanks a lot for the link.

In short, Malaysia allows you to live there by depositing $50k (if over 50 years old) or $100k (if under 50). You can lower that to $20k, regardless of age, after a year. No taxes to be paid.

I know Costa Rica and Panama have very similar programs. Only thing I haven't seen is medical insurance/expenses issues.

Does anybody knows of programs like these in other countries?

[Minimum Wage]

In short, Malaysia allows you to live there by depositing $50k (if over 50 years old) or $100k (if under 50). You can lower that to $20k, regardless of age, after a year. No taxes to be paid.

Gee, that's very generous of them. (sarc)