Daily Snapshot

Retiring Abroad – What Does It Take?

“Aruba, Jamaica, ooh I wanna take ya Bermuda, Bahama, come on pretty mama” –The Beach Boys

In conversations about retirement, moving overseas is always a hot topic. The ocean is always bluer on the other side of the equator. We all know or have heard of the wonderful places, the low cost of living, and the incredible experience of moving to an exotic land. But, what is the reality of making an international move. What does it take? Do you just show up? Is it as easy and as great as it seems?

Let’s get a realistic look at what you need to do to live in the top retirement locations or become a legal resident. What kind of lifestyle would you like to have? There are the sunny, sandy beach communities, towns in the mountains, big city life. Which is for you?

For some a warm tropical climate, walks on the beach with palm trees, and the smell of salt air is their dream spot. For others a mountain location with a cooler climate and less humidity may be right. You might like the fast pace and the hustle of a big city with all the conveniences that come with it. You don’t have to give up your dream of having those things. It’s all out there. You just have to find the right locale for you and your budget.

There are several countries that welcome retirees and do their best to make coming to their shores attractive and inexpensive. Both Panama and Ecuador have incredible discounts for retirees. They want you. They want American dollars to boost their economy, and they make it easy for the retiree to get long-term or permanent visas.

The discussion below is not intended to be exhaustive by any means, but just a brief overview of the most popular retirement destinations.

Remember, countries are large and individual places within a country will be very different. Think about someone moving to the United States. What would you tell them it was like? Like the beaches in California, the intensity of New York, or the slow southern tempo of Kentucky?

There are general requirements for moving overseas and those specific to individual countries.

Visa Requirements

For each country you may consider relocating to, there are basic visa requirements that you must provide. You will need:

• Visa application
• Visa fee
• Passport photos
• Current Passport-good for six months
• Health certificate
• Criminal background check

All documents will have to be validated by a government agency and notarized. There may be additional legal or translation fees required to process your application.

Financial Requirements

Each country will then have its own financial requirements. The most popular locations with a low cost of living are listed below. I will caution you that information on the Internet can be incorrect and outdated. It is best to get your information directly from the embassy or consulate for the country you choose. Requirements change frequently as does the process involved.

Panama, in Central America, is currently the #1 country in the world for attracting retirees, with a generous discount program for pensionados and a modest income requirement. You must prove an income of $500 per month for an individual or $600 per couple from a government or corporate source for a long term visa. There is no deposit required to live in Panama. While the length of the visa is indefinite, you do need to prove annually that you have the necessary income to remain in the country. The Turista Pensionado is the best option for those collecting Social Security or a pension. Contact the embassy for the most up-to-date information.

Discounts are available for just about everything: transportation, entertainment, restaurants, utilities, hospital visits, medical and dental care as well as prescriptions. They range between 15 and 50 percent for retirees and make living here much less expensive.

Ecuador, a South American country, is also a popular retirement destination. It boasts an attractive discount program similar to those offered in Panama. One additional feature is that retirees never have to wait in line. You automatically go to the front.

For immigration purposes for Ecuador you must apply for the Pension Visa and prove an income of at least $800 per month. There is no deposit necessary.

Mexico, our nearest neighbor to the south, has long been a retirement destination for many Americans. To immigrate, you must first apply for a Temporary Resident Visa. The Temporary Resident Visa lasts up to four years. According to the Consulate, you must prove $2,000 tax-free income per month or an average balance of bank accounts and investments of $95,892 over the past 12 months. After the four-year period, you can then apply for a Permanent Resident Visa. For this you need an income of $2,500 per month or a balance of $119,865 for the past 12 months.

Belize is a small country on the Caribbean just south of Mexico. The Qualified Retired Persons Visa (QRP) is a long-term visa available to those who can prove an income of $2,000 or more per month.

Nicaragua, a Central American country, which has both a Pacific and Caribbean Coast, requires an income of just $600 per month and is working hard to compete in the arena for the attention of retirees.

The Philippines is a South Pacific country made up of over 7,000 islands with an SRRV or Special Resident Retiree Visa, the most appropriate for American retirees. This visa requires proof of $800 monthly income or $1,000 for a couple and does require a $10,000 deposit. If you do not have a verifiable income, you can still obtain this visa, but the deposit requirement goes up to $20,000.

Malaysia is a South Pacific nation that is connected to the mainland of Southeast Asia by Thailand. This is known as West Malaysia. Another section located on the northern side of the island of Borneo is called East Malaysia. The two are separated by the China Sea. Malaysia offers the MM2H, Malaysia My Second home, visa. This is a ten-year renewable visa. A deposit of $45,878 is required along with a monthly income of $3,058 (at today’s conversion rate).

Thailand in Southeast Asia has long been a popular retirement destination. It offers the Non-Immigrant Long Stay visa, which allows you to stay for one year. After that you must reapply, and an extension may be granted. A verifiable income of about $2,015 per month is required or a deposit of $24,800.

As we have seen, income requirements vary a great deal. Some are very low at $500 per month, and others are over $3,000 per month. Deposits can be high or not needed at all. Your income and the type of environment you want to live in will help determine which place is right for you.

General Attributes

One of the things that all of these countries have in common is that they are in a warm climate—some warmer than others—but they are all closer to the equator than we are. It is also generally true that the cities will be more expensive, though the further away you get, the lower the cost of living. Also, the closer you are to the metropolitan centers, the better the services will be.

Most of these countries are continually upgrading their infrastructure to accommodate the growing number of immigrants—and yes, you will be an immigrant—but some are further along than others. As a general rule, medical care, utilities, water, Internet connections, and cell coverage will vary the farther away you get from the city. The more remote the location, the less reliable the services are. If you need the Internet or a cell phone to conduct business while abroad, you’d want to make sure you have what you need before making the move.

Road conditions are also something to consider: though they are improving all the time, the existence and maintenance of roads is a major factor. If you like to travel and explore, this may be something you want to think about and investigate.

You may also want to consider the distance you live from a good hospital and how long it will take for you to get there in an emergency. It’s not fun to imagine traveling on a bumpy road when you are sick or hurt.

Language can be a fun factor. In general, more English is spoken in the city than in the rural areas, unless you are in an area with a large expat community. It is always easier, and you will acclimate better if you speak at least a little of the local language. You’ll be able to communicate with your neighbors and handle situations better. You’ll be more engaged in your community and have better relationships. Another perk is that learning a language is one of the best things to do to keep your mind sharp, and we could all use that—so start creating those new pathways in the brain.

Shopping is another thought. Many cities cater to the expat communities and import things you are used to. Merchants want to keep you happy, so they import foods and products that you like. This may not be true in more rural areas.

We all need to remember that we live in a highly efficient country. Things here work. That is not always the case elsewhere. Electricity, water, phone service, etc. may all be subject to outages or spotty service.

Administratively, there can be problems that seem so easy to fix. You will face dealing with what will seem like ridiculous and redundant procedures, and there may be nothing you can do about it.

Best to learn and endure. You are not going to change things and will be frustrated trying.

In many countries you cannot just walk into a bank and open an account. You need referrals and documentation from other banks and institutions. Not a big deal in our world, but it can be in theirs. This can be a Catch 22 because you can’t always get a bank account without a residence, and you can’t get your utilities turned on unless you have a bank account.

Health insurance is something you need to look into. Medicare does not cover you when you are outside the United States, but Medigap might depending on your policy. You may be able to join a local healthcare plan, but some countries, like Malaysia, require you to carry your own policy. Because of the low cost of care, many expats choose to pay out of pocket when they need care and forego the regular cost of insurance.

There are numerous ways of calculating cost of living and plenty of conflicting information. There are various sites that allow you to compare cost of living in different locations.

Should You Move?

There’s a big wide world out there, at all prices, just waiting for you. There’s adventure and fun to be had, if that’s what interests you. You have to ponder a few questions and determine what you want your life to be like.

Are you adventurous?

Do you like cultural diversity?

Do you make friends easily and fit right in or prefer a quieter life?

Do you need quick access to the U.S.?

You need to consider if you have special health needs, require constant Internet access, and where your money will buy you the most.

It’s all out there. All you need to do is pack up and go!

Please, Do Not Give Up On Living Your Retirement Dream!

For the past year, since the first of the Baby Boomer Bulge reached the age of 65 years, the estimates are that 10,000 Baby Boomers are retiring each day – yes, that is correct – each and every day. Also, from reliable statistics around 70 – 80% of all Baby Boomers have realized they have or will have inadequate savings, investments or income to see them through their increasingly long years of retirement.

Doing the math, this calculates to around 7000 of the 10,000 retiring per day probably know they are on a financial slippery slope in the years to come.

The media is full of articles and interviews asking, pondering, gazing at navels and thoughtfully pronouncing about “How much is enough?” or “How much do you need to retire?” bringing forth such solid definite answers of “$2-3 million dollars” to “70% of your pre-retirement income” etc.

These erudite answers to me have always seemed to be geared to filling newspaper columns, or radio or TV time and accomplishing little, because it would seem obvious the correct answer is the very definite “It depends”.

How much you need to retire depends on what you wish to do in your retirement and often these pronouncements of the amount of money needed in are based on the experience of our parents’ retirements. Their accepted retirement lifestyle was to settle down at home and potter around the garden and knit sweaters for the grand-children, generally leading a quiet and peaceful existence, until you shuffled off this mortal coil.

But times have changed. We are living longer – and more importantly living well for much longer. I am in my mid-sixties and many of my friends have parents in their mid to late eighties, who are still globe-trotting, are curious and mentally as sharp as tacks. One of these parents is leading hiking trips at age 86 years, and an acquaintance of mine has just completed her first sky-dive at the age of 77 years!

Times have changed and are rapidly changing in many, many ways.

So how much do you need? Well, as I say – “It depends”.

Pottering around in the garden and knitting sweaters for your grand-children is a wonderful way to spend your later years, if this is the retirement lifestyle of your dreams.

And with this lifestyle, you will spend far less than the person or couple, who have planned to fulfill their extensive Bucket List by exploring the planet from the Arctic to Antarctic and all points East and West, whilst staying at four star hotels and eating at gourmet restaurants, which leads us naturally to asking a few questions –

1. What would your perfect lifestyle be in retirement?
2. If you wish to live your perfect retirement lifestyle, have you calculated how much it would cost annually?
3. Have you calculated your Net Worth?
4. Do you know how long your Net Worth will allow you to live your dream lifestyle in your later years?
5. Can you afford to live this retirement lifestyle until you are well into your nineties?
6. Have you included long term care costs or insurance into your calculations?

Unless Mankind makes a very big blunder, which is always a possibility, or we don’t spot a large stray asteroid heading in our direction, the chances are increasing that you will be living well and living well into your very late eighties or nineties.

The numbers of centenarians is on the rise and the upper age limit of life insurance tables was increased in 2001 from 100 years of age to 120 years. You can be sure the life insurance actuaries have analyzed future longevity trends with great attention.

As a physician for over 40 years practicing as an anesthesiologist, I have witnessed this improvement in the quality of our lives and our increasing longevity.

Living independently into your mid-nineties very rarely occurred 40 years ago, but is now increasingly common. I remember one delightful 92 year old, who was excited to be undergoing her second knee replacement, and longing to get back to her Tai-Chi and gardening.

Knee replacements did not exist before 1968, when the first total knee replacement was performed, a year when I was half way through Medical School. In those days, if you had severe arthritis of the knee or hip – tough luck – no spare parts – just a slow painful limitation of your activity.

I could cite many other health “miracles” of my decades in practice, which have served to allow us to live better and longer lives, but the point is our retirements will be very different from those of our parents.

Do you want to live your retirement dream?

How are your retirement plans progressing?

Do you have a detailed plan, costs calculated as realistically as possible and with a time line?

If you have no plan and costing and your retirement age is swooping upon you with surprisingly rapidity, when are you going to start planning?

For without doubt,If you fail to plan, you plan to fail.

If your retirement plan is on track – congratulations – for you are one of the few who appreciate the necessity of planning ahead.

If your plans are a little vague and wobbly, have you considered finding a mentor, who can help you to gather your ideas together, and show you the path to living your ideal retirement?

Abraham Lincoln said – “The best way to predict your future is to create it”.

If you long to live your retirement dream, now, today, this minute is your moment, your time to take action, craft your plan and predict and create your future.

Nothing can stop you – no matter how old you are

How many times have you awakened in the morning and wondered what happened with the past six or seven decades? Or have you looked into the mirror and felt it was unfair that life passed you by without giving you a chance to pursue the career you always wanted? As much as some people look forward to retirement, what if you don’t have the income to maintain the lifestyle you have grown accustomed to? Then there is the backdoor threat of Alzheimer’s. You may wonder how you are going to stay alert and focused when your days may only be filled with volunteer community work or gardening.

I am one of those weird people who would rather work than play. If I don’t have any pressing jobs to accomplish, I create one. The few times I have focused on leisure instead of work, I got bored quickly. As the years were fleeting by and I remained in great health, I could not imagine living without an on-going purpose or fulfilling a dream during my ‘golden’ years.

Choosing to be a victor instead of a victim

My life was not an easy one. In fact, I endured more problems than most people would be able to handle. The more negatives life threw at me, the stronger and hopefully, wiser, I became. But what good is that wisdom if I couldn’t put it to good use?

When my daughter was a teenager she started a crusade to encourage me to write my memoir. It started as a campaign and over the course of ten years, she made it a threat. She had heard all my excuses and was not going to tolerate them any longer. “Write your story or else!” I never asked her what the ‘or else’ was nor do I want to know. Finally, to make her be quiet I began the journey of writing my story.

I never would have believed it could be so difficult but it was also a driving force as the more I wrote the more I realized I had a message the world needed to hear. It was a message of never, ever giving up – no matter what happens.

Stepping WAY out of my comfort zone

My husband and I were in our sixties when we opened three high-end jewelry stores. Shortly thereafter, my husband was in a serious car accident which left him disabled. We found ourselves thrown into a situation that did not allow us to quit our jobs, or sell our businesses. We had to keep going. We weren’t given a choice.

When I was in my twenties, I became a certified health coach after I was told I only had two years to live due to cancer. I refused the normal invasive treatments and opted to cure myself with nutrition and food supplements. After complete restoration, I promised myself I would help people with their health issues until the day I die.

Where was I going to find the time to write a book and maintain my brick and mortar jobs? I wrote late in the evenings; and after ten years triggered by painful memories, I was ready to launch my book.

I was 65 years old and had no idea my life was about to start over with a new career. I hired a publisher to promote the new book which was a short-lived relationship. Fortunately, I discovered early on that they were keeping my royalties and firing them was the easy part. However, I was thrown into the world of social media which I knew next to nothing about.

I took every available course I could find on marketing and promoting a memoir and my book sales began to soar. Numerous opportunities to share my story as a keynote speaker meant I was on the road at least one week a month.

The new normal

Obviously, I wasn’t busy enough because I had a brainstorm for my next project. I decided to start a podcast where I would interview ordinary people who overcame extraordinary circumstances and became successful as a result. In the first hour after posting my idea on the internet, I had over 100 requests to be on my show. What show? I had to work swiftly to train myself how to podcast, how to edit and how to promote my show. That was two years ago and I am now heard in over 120 countries with unending daily requests to be part of the show.

When I look in the mirror I may see an old woman, but I also see one who can encourage anyone who wants more than what retirement may have to offer, when they come to a mature time of life.

I wanted to fulfil the dream of being an author, an international speaker and a talk show host. At 65 these seemed like pipe dreams but I am now living them and looking forward to the next challenge. As owner and operator of two jewelry stores, my health coaching business, traveling as a speaker, hosting and managing my talk show, writing for numerous magazines and anthologies, having my own monthly column in two magazines, being bookkeeper for all the businesses, taking care of a disabled husband and rescuing dogs (over 30 to date) where will I ever get the time to do more? Yet, I know I will find that time.

Nothing is stopping you

We all have the ability and the right to choose what we do with our retirement years. My choice was to start over – doing what I wanted to do and helping so many others be encouraged and challenged to never ever give up hope.

Never limit yourself by making excuses why you cannot do what you always wanted to do. Find a way. Set your goals. You will never regret it. It will sustain your youth. You have much to offer – start giving it away.