How To Save Money When Retiring Abroad?

Advisor January 25, 2018

One of the milestones or phases in our life that we’re looking forward to is our retirement. This is the time in our life when we finally get to stop working and start focusing on our leisure and relaxation. We don’t have to worry about working ourselves to the point of exhaustion. We can now wake up as late as we want and enjoy a cup of coffee while reading newspapers or our favorite book.

We now have enough time to fulfill our hobbies and passions but to some of us, we get to make bigger changes in life during our retirement. Some of us just want to retire in a peaceful and beautiful place where, aside from our savings, we also get to enjoy premium benefits like health care. However, availing it in a foreign country may cost you more than what you’ve earned. How can you ensure a smooth retirement transition and be able to save money while retiring abroad? Here’s what you can do.

Find an Appropriate Real Estate Property

The moment you’re done working on your papers and visa for immigration, the next thing you need to consider is your accommodation. Rather than staying at a hotel, it is advisable that you lease an affordable apartment or condo unit that caters your individual needs. It’s even better if you can afford to buy a house since the property will be yours and you only get to pay one-time. Make sure to check for amenities. For instance, you can opt for choosing shower instead of having a bathtub, a one duplex house instead of 2-storey, etc.

Purchase or Rent a Real Estate According To Your Needs and Preference

We also recommend that you choose an apartment that is within a walking distance from establishments like a grocery store, mall, banks, etc. This will help you save more time and money because you only need to walk rather than pay for your transportation. Depending on your country of choice, you can browse leasing and apartment websites like Airbnb.com, HomeExchange.com, and VRBO.com, to find the best apartment for you.

Make Sure To Avail a Healthcare Package

Consider Purchasing a Travel Insurance If you Want to Retire Abroad

Universal healthcare is important since you can use this emergency fund if anything happens to you. Aside from that, it’ll cover all your medical and hospital expenses without draining your savings. That’s why, if you’re planning to retire abroad, we advise you to start saving and availing a healthcare insurance as early as today, while you’re still young and able. Now you might be confused because there are circumstances where Medicare won’t be able to pay your overseas bills, but no worries. This is also where your Medigap coverage comes in. Aside from long-term healthcare, it’s also recommended to avail a travel insurance policy during the first 30-60 days of your trip. Make sure to get a quotation about the policy insurance you’re availing in your preferred country.

Fix Your Exchange Rate

It’s important that you get an estimate or the current trend of your currency exchange rate in order to determine how much money you have the moment you migrate. It’ll also help determine how your savings can sustain and support your living. Along with the exchange rate, you also need to consider the country’s cost of living. If you want to live in Europe or the Scandinavian countries, then you might need to save more money because the cost of living there is pretty expensive. If you’re living in Asia, then you can start converting your USD or UK pounds to local currency to accumulate your savings more, make sure to take the opportunity of the high exchange rate.

Consider Opening a Local Bank Account In Your Migrated Country

Set up a Local Bank Account to Transfer Your Savings

If possible, we also urge you to set up and open a local bank account in the new country you’re living in. It’s because some Banks will charge you with a hefty foreign or overseas fees with every transaction, which can drain your savings more than you like. You might also want to consider the location you’re in. If you’re within cities, metropolis, or CBDs, then getting an ATM card, debit or credit card may seem appropriate for you. However, if you’re living in remote rural areas where ATM machines are cash, you might want to convert a portion of your savings to cash in order to cover your expenses on a daily basis.