Retiring in Paradise

We've discussed (several times) the idea of retiring overseas in order to make your savings go a lot farther (due to much cheaper costs of living.) But what about retiring overseas for another reason -- like a much better climate? What about instead of retiring in Mexico so your meager savings can last the rest of your life you're more likely to retire to the island of St. John in the Caribbean so you can spend your final years in paradise? Does that sound good to anyone?

Ok, maybe St. John is a stretch. (We recently saw a House Hunters International where they noted that a starter home there is in the $1 million range.) But you get the idea -- moving to somewhere exotic, warm, and/or beautiful. It's a dream for many. I just wonder how many do it.

I'm guessing that's why so many people retire in Florida, Arizona, and similar states. They are looking for that nice retirement climate. But what about taking it a notch higher and going overseas. Think Aruba, Hawaii (yes, I realize it's in the US, but it's so far away it might as well be another country), Grand Cayman, and so on.

The retirement spot of choice for many I know is Costa Rica. The people I know that live there most or part of the year seem to love it. And what's not to love? While we're freezing in Michigan from November to March, they're outside on the beach in shorts.

This piece from US News talks about how to retire gradually overseas. Their basic advice for doing this: ease into it gradually. Start with a month-long trip. If you like it, move up to a several-month stay. If you still like it, consider moving for good. Sounds reasonable to me.

Anyone else out there ever thought of retiring to a much better location when you have the chance? Has anyone reading ever done it (or are in the process of doing it)?

Comments

[Nicole]

I would like to retire early somewhere warm overseas, it's still a bit in the future, my husband and I are in our mid-30s. We are on track to retire before 50 if we pick a low cost country. We don't have children, so I think provided we continue with our good health, this could definitely happen. We would like to retire to Hawaii (where we went on our honeymoon), but that as well as most caribbean islands would put retirement further off. As we get closer, we will pick the place, probably buy something in our 40s, and use it as vacation rental, then when the time comes, we will move there full time.
I follow a website http://www.retireearlylifestyle.com/ of a couple who retired in their early 30s, I think they are 50ish now. They have a low cost home base in Arizona (nicer trailer community), but spend most time in Mexico and Central America, they are perpetual travelers.
I have a couple of friends in their early 50s who are taking a year to live in Puerto Rico, and then possibly retire there full-time.
FYI - I love yours posts and local spin, we live in SW Michigan too :)

[Matt]

My idea would be take a 6 to 8 week vacation during the winter and staying put where I am living now.

As much as Florida is beautiful in the winter, I have been in Miami in the middle of August. 90% humidity and 98 degrees during the day. It is unbearable even for some of the locals not to mention I hate the heat. To live down there year round would not be for me.

Plus if you are not tied down to one location and have the ability to wander around.

[Crystal]

My husband and I are happy with Houston, TX and just plan to travel 6 weeks a year in retirement in 1-2 week increments here and there. We already are taking about five 3-4 day weekend vacations a year and one big week long one, so retirement will just allow us the time to do a little more. Maybe a 1 month trip every few years, but we generally are very happy where we are. :-)

[brooklyn money]

If by retire you mean move to a foreign low cost paradise now, then yes!
I've lived in Chile (for 6 months) and have vacationed all over south and central America. I'm trying to figure out where I like best and what kind of property I want to buy. I think I'll take the plunge eventually and then transition to that property full time (in a million years when I'm able to actually retire). I really liked Honduras, but don't tell anyone as I don't want prices to get as high as CR, haha.

[Lurker Carl]

I have no desire to pay top dollar for real estate in a third world country. The homes are surrounded by high walls topped with glass shards, the communities are gated and patrolled by armed guards. A political shift of power can make your life miserable or worse. So can a hurricane or two.

[Mike Hunt]

In SE Asia there are some nice places to stay and the cost of living is much lower than the US but it is rising fast because of the relative weakening of the US Dollar combined with rising prices in local currency.

People will need to learn about the cultures here and potentially learn more than just English although that is not absolutely necessary.

I see a lot of Europeans and Australians retiring around here and a few Americans as well.

-Mike

[Brad]

Living in AZ, (it was 110 a few days ago) I think it would be ideal to have a second home somewhere instead of moving to a place to live full-time. That way, you can enjoy nice weather year round (CO in the summers?) and have an excuse to go on a road trip! In the off-season when you aren't living there, you can rent it out for another diversified stream of income! This can maybe help offset the costs of staying in the US vs going abroad full time. That is my goal at least (in a very long while).

[sosa]

We bought a townhouse in Aruba for retirement winters and truly love it! The people are really friendly and the island is very safe. It does take some getting use to because goods are not always available as in the USA.Our community is mostly americans and people from South America.

[Marty]

I have been to several countries around SE asia as well. I have met several ex-pats from the US, Australia, Britain, Germany and Russia. Depending on what country can be as Lurker Carl stated. High walls and guards. Some I would not want to stay for more than a few days. Others are very welcoming to foreigners and I could see myself living there for part of the year. My wife and I have even talked about doint just that after retirement. I don't like Florida that much. Arizona seems ok, but expensive and California is very expensive. We still have a few years to think about it, so we will have to see.

[Rich Schmidt]

We haven't made any real plans for retirement yet (other than saving/investing heavily for it), but I don't think we'd want to move that far away from family. We're in our mid-30's, and we enjoy living near my parents, an hour from my sister's family, and 4-5 hours from my wife's parents & brother's family. While we have enjoyed getting away for week-long vacations (Florida, California, Mexico, Jamaica) and extended times away (6 weeks in Guatemala in 2008), I don't think we would want to live year-round that far from family.

We think we'll retire in our mid-50's. Maybe then we'll live part of the year in paradise and part of the year here in the Midwest. We'll see.

[No Debt MBA]

If you want to live on St Johns you could always consider living on a boat. Probably cheaper than a house there and you can always switch islands when your slip lease is up for some variety in your sunshine and paradise.

[Gary]

I plan on retiring in SE Asia in a few years (mid fifties). My wife is from there and already owns the land we'll build on, I speak the language, and cost of living is significantly lower so I'll be able to retire much earlier and still leave a legacy.

[Joe]

Good idea Gary. I'm from Thailand and my wife is from Ohio. Once the kids get in to College we will retire and plan on living 6 months in Thailand and 6 months in Ohio. We plan to have the house in Ohio and the condo in SE Asia paid off before I take early retirement. With no debt we can live on very little and afford to do lots of traveling.

[YoungLimey]

When I'm old and feeble, I can't see myself living in a country known for pirating and holding people for ransom. I could see the southeast states though.