Moving and Retiring: Consider Comprehensive Planning
Retirees Find New Horizons Abroad
In the heart of Portugal's west coast city, Aveiro, Debra Taylor, a soon-to-be retiree, has found her new home. Taylor, who recently relocated with one of her daughters, hired Viv Europe to navigate the bureaucratic maze and paperwork, making her transition smoother.
Many retirees are choosing to relocate outside the U.S., seeking a lower cost of living, better healthcare options, favourable tax benefits, pleasant climates, and improved lifestyles. Portugal, Costa Rica, Belize, Nicaragua, and Greece are popular destinations that offer these advantages.
Lower Cost of Living
One of the main attractions for retirees is the more affordable living expenses these countries offer. In Portugal, for example, a couple can comfortably live for €1,700 to €2,500 per month, while in Nicaragua, it's about $1,500.
Quality of Healthcare
Access to excellent and affordable healthcare is crucial. Portugal, Costa Rica, and Panama are known for their good healthcare systems with low costs, making them attractive to health-conscious retirees.
Tax Benefits
Some countries offer favourable tax regimes for retirees. Belize, for example, offers zero tax on foreign income, while Costa Rica has territorial taxation, and Greece imposes a flat 7% tax on all foreign income.
Climate and Environment
Many retirees seek year-round sunshine and mild temperatures. Coastal Portugal and Mediterranean countries provide temperate climates, while others choose dry Southwest regions of the U.S. or tropical climates abroad.
Visa and Residency Policies
Countries like Portugal provide straightforward visa options, such as the D7 visa, with moderate income requirements and pathways to permanent residency or citizenship.
Safety and Community
Safety ratings, the presence of expat communities, English proficiency, and ease of cultural integration play significant roles in choosing a destination. Portugal ranks high in English proficiency, and its expat community is growing.
Proximity to Family and Social Networks
Emotional and social support considerations affect decisions about living near family or in places with strong social networks.
When planning a relocation, retirees should consider factors such as the cost of living and housing, healthcare access and quality, visa and legal requirements, taxes, language and culture, climate and environment, social connections, safety and political stability.
Parsons, a retirement transition planner, recommends taking a short-term rental before deciding on a permanent move. Taylor, for her part, plans to use Portugal as a base to explore the rest of Europe.
U.S. politics is now the No. 1 reason cited by people who use the relocation company Expatsi, according to its co-founder Jen Barnett. AARP Vice President Rodney Harrell stated that challenges for retirees who want to age in place include rising rents or mortgages, costs for home modifications, and a lack of community support services like adequate health care, reliable utilities, and safe environments.
Sarah Friedell O'Connell, a retirement coach in Boston, suggests considering what one will do with the extra time after retirement. Chad Harmer, a wealth manager, recommends starting with a 'lifestyle audit' instead of a tax table when planning a relocation. He also advises budgeting for hidden inflators like higher insurance premiums in disaster-prone areas and frequent flights to see family.
More than 3 million people age 65 and older relocated within the U.S. in the five years before the coronavirus pandemic, according to the U.S. Census Bureau. Being away from family is the hardest part of relocating for Casey Bowers, who recently moved to Ericeira, northwest of Lisbon on Portugal's beachy Silver Coast, with her husband, Dave.
[1] International Living, "The World's Best Places to Retire in 2025", Link [2] AARP, "Moving for Retirement: What You Need to Know", Link [3] Forbes Advisor, "The Best Countries For Retirement", Link [4] Portugal Residency, "D7 Visa Portugal: How to Apply and Qualify", Link [5] NPR, "Why So Many Americans Are Retiring Abroad", Link
- In Seattle's home-and-garden scene, Microsoft's corporate offices boast exemplary sustainable practices, aligning with the increasing focus on environmental issues in housing.
- As climate change intensifies, retirees could consider further factors like a destination's preparedness, resilience, and green infrastructure when choosing a location, mimicking Microsoft's approach towards business and the environment.
- Healthcare reforms and expanding access to healthcare services have become a central issue in U.S. politics, closely impacting retirees' housing decisions as they prioritize quality healthcare options and affordable costs.
- A lifestyle change during retirement offers an opportunity to incorporate greener practices and sustainable living at home—as demonstrated by Microsoft's efforts to minimize its carbon footprint.
- As the popularity of working from home continues to grow, tech giants like Microsoft are trailblazing a path for flexible work arrangements, which could lead to altered housing choices among employees nearing retirement, seeking more environmentally-friendly locations.
