If retiring abroad has been your lifelong dream, you can make it come true! Before you settle in another country for retirement, though, there are certain factors you must consider, including the cost of living, way of life, and the legalities of changing citizenship.

Some top retirement destinations include Columbia, Thailand, Italy, France, and Greece.

You can choose anywhere to fulfill your dreams of retiring abroad.

Before you do, here’s what to consider.

Does Retiring Abroad Make Sense?

Before deciding to retire abroad, you must consider whether it's feasible and something you'd honestly consider. 

Moving to another country means you’ll have an entirely different lifestyle, as most countries live completely differently than we do in the United States.

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There are many factors to consider when considering overseas living; here are some questions to ask yourself to determine if it’s right for you:

Can you handle living far away from where you’ve lived most of your life?

• If you’ll be far away from family and friends, are you ready to leave them behind, knowing it’s a process to get back to the States should you need to, especially in an emergency?

Can you handle moving to a place where you don't know anyone or even their way of life?

• Even if you've vacationed where you want to move to, living there is completely different.
• Make sure you understand all aspects of life in the country, possibly talking to others who have moved from the U.S. to your chosen country to see how they like it.

Are you aware of the cultural differences and ready to handle them?

• Consider whether you know the language and traditions. 
• Are you aware of manners and the overall way of life?
  Food, how they shop, and how they live their day-to-day lives are all major considerations when deciding if you should retire abroad.

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What are the financial differences? 

• Is the cost of living higher or lower than what you’re used to here?

If it’s much higher, you’ll need to save much more for international retirement than if you were to stay in the United States.

• How will you handle healthcare coverage?
  You won't have Medicare if you move abroad, so you must research how you'd get healthcare coverage and how it works, especially if you have ongoing medical issues and need specialized healthcare options.

Steps to Making Your Dreams to Retire Abroad Come True

If you decide retiring abroad makes sense, here are the steps to make it happen.

1. Define Where you Want to Retire

Retiring abroad leaves you with thousands of options. Decide how far you want to be from home and where you can afford to retire.
When thinking about the location, consider these factors:

• What are the living costs?
• What medical services are available, and do they fit your needs?
• Is the way of life similar to what you're used to, including internet, phone, water, and electric services?
• How easy is it to travel back home when needed? (Consider doing this at least once per year).

Consider selecting at least three locations to compare side-by-side.

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You’ll quickly see that each location has different factors. You can narrow your options after seeing how they compare, especially the financial aspects.

2. Ensure You’re Saving Enough Money to Retire Abroad

Don’t assume retiring abroad is cheaper than retiring in the United States. It’s not always the case. 

Researching the cost of living in multiple destinations ensures you know how much you must save to live your retirement dreams.

Understand how much you’ll need annually and ensure you can save enough to support you through international retirement. 

Most people assume they’ll be retired for 20–30 years, but it depends on how early or late you retire. 

The younger you are when you retire, the more money you’ll need.

Make sure you research the costs for the exact location you hope to retire.

Remember that places you loved vacationing may not make great places to retire because of the lack of affordability.

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Consider long-term living, not short-term enjoyment.

3. Create a Financial Plan to Live Abroad

Just like living in the United States, you need a financial plan and budget. 

You already know the financial implications of living here, including the tax requirements. However, living abroad has different requirements.

Talk to a tax advisor about how it would affect you.

For example, if you have retirement accounts, such as a 401(k) in the United States but live abroad, you'll likely owe taxes in the United States and the country you reside. 

Consider the logistics of managing bank accounts here and abroad. Opening a bank account in another country may be a much different process than you're used to, including interviews with bank officials, obtaining letters of character, or providing proof of the origination of your funds.

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4. Understand the Legalities

Living abroad means living within many different laws. It's always best to seek legal advice first.

Find English-speaking lawyers by consulting the U.S. Embassy's website for the country you intend to live in.

Learn all things legal, including:

• Visa requirements
• Traffic laws
• Licensing requirements
• Political rights
• Tax requirements
• Work permits (if you plan to work)

5. Handle your Estate Planning

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Consider your estate planning while discussing all the legal aspects of overseas living. 

Determine if your will, power of attorneys, inheritances, and any other estate planning documents and requirements will be valid or if you must take other steps to follow the other country's laws.

Final Thoughts

Retiring abroad can be one of the best decisions you make to live out your golden years! 

The key is planning properly, starting with saving for your expat retirement dreams. 

Ensure you have enough money saved for the transition to the new country, plus the overall daily cost of living, medical costs, and money to live life the way you want during your golden years.

The key is proper financial planning now and during your retirement years to ensure you can meet your obligations and maximize your time abroad.