Reassess and adjust your budget to deal with rising living costs
Healthcare and housing expenses are significant for expat retirees. Private health insurance premiums indeed increase with age. For example, coverage for a 65-year-old living in Thailand, including routine care, hospitalization, and dental and optical care, costs between 800 and 1500 euros per month (based on an insurance comparison tool). If managing these costs becomes challenging, why not consider local health insurance? Contrary to a popular misconception, it is generally possible for foreign retirees to join the local healthcare system as long as they have a regular residency permit and pay their contributions.
Understanding exactly what benefits you are entitled to, and the extent of reimbursements can help you save money without necessarily sacrificing the quality of care.
Are you renting a property in your expat country? Does the rent keep increasing? Other than looking for more affordable accommodation, you could consider alternatives. Homesharing for seniors, a growing trend not just associated with student life offers a way to find a roommate of your age to share expenses. Intergenerational shared living is also on the rise. You could share your accommodation or rent out a room to a student, for instance. It could be a good way to save money and enrich your personal and social lives.
Regarding your daily expenses, review your consumption habits. Start by reducing your consumption of imported goods and shifting towards local products while prioritizing quality. Regarding transportation, opt for public transit if you can do so without the financial burden of a car, especially as many cities offer discounts for seniors' transport subscriptions. Also, consider walking and cycling, which are other ways to benefit your wallet and physical health. Regarding trips back to your home country, try to target off-peak periods for better prices or encourage your relatives to visit, as they would likely be delighted to spend a holiday abroad.
Explore your options for extra income
Have you considered boosting your retirement pension with some extra income? First, clarify the possibilities of working in your country of residence, as not all visa types allow it. For example, a retirement visa usually restricts the ability to engage in local employment. Do you have a long-term residence permit? In this case, there is a better chance that this type of residence permit would allow you to work alongside your retirement. Inquire precisely from the immigration office concerned, as each state has its own specific rules regarding the employment of foreign nationals.
In general, being an independent consultant might work for you if it aligns with your professional skills, rather than seeking local employment. Outside of highly specialized fields, we all know how difficult it can be to get hired at a certain age. However, there is no age limit for starting your own business. Many countries offer simplified business statuses that might be ideally suited for part-time work as an additional source of income.
Capitalize on what makes your native language and culture unique in the country you reside in. Why not consider teaching your native language to children or adults? You might not be a teacher, but nothing stops you from getting some training, which will be complemented by the significant asset of being a native speaker. You could also target sectors where proficiency in your native language is a prerequisite (translation, international trade, tourism, etc.).
Optimizing your income and investments
Have you checked with a banking advisor about your investments? Some might have been underperforming for years, but you could switch to more profitable savings or investment products.
Is real estate investment an option for you right now? If you have the budget, why not consider buying your main residence? It might be profitable even if you're not sure to stay in the country for the rest of your life. Start by examining the local real estate market, its possible developments, and the opportunities it may offer. There are many other real estate investment possibilities, whether in bare ownership or through a civil real estate investment fund (SCPI), that require little management on your part.
Maybe you simply don't have the means to save or invest. If you receive your retirement in a different currency, be careful when transferring funds from one currency to another. Exchange rates can vary considerably, and it would be a pity to see the value of your retirement pension depreciated. So, only withdraw money when exchange rates are favorable. Consider using the services of a bank with branches in your host and home countries, as this would facilitate fund transfers and reduce exchange fees. Think about the possibility of opening a multi-currency account, which can help efficiently manage different currencies and minimize exchange fees.
Should you return to your home country or move elsewhere?
When the cost of living becomes too burdensome, it might be time to consider leaving the country where you have retired. Should you return to your country of origin or relocate elsewhere? The decision will be based on your desires, various criteria, and lifestyle choices.
If you are looking for a more affordable place, try to base yourself on reliable indicators. Many more or less fanciful rankings of countries for retirement do not reflect the economic reality on the ground. Therefore, inflation in the target country and the consumer price index should be studied precisely, as this will give you an accurate idea of the cost of living. You can access these on the World Bank or International Monetary Fund websites, where you will find many other economic perspectives and information. There is also a cost of living index, which takes into account data such as the cost of housing, transport, and energy and is available by country.
Before opting for a new destination, check out all aspects related to visas and residence permits, especially the possibility of engaging in professional activity.
Do not neglect taxation, either. What will your tax residence be? Will your retirement pension be taxed in your home country of origin or your country of residence? Depending on the tax policies and different rates, this can make a significant difference.
Returning to your home country could also be a good choice, especially if you have misconceptions about certain destinations (the tendency to think that everything is better there); this includes your home country, which has also certainly evolved in the meantime. If the cost of living has become a burden for you, check whether you are eligible for assistance in your home country (such as housing aid, which is often inaccessible to foreign residents. Being well-informed will allow you to choose a new place of residence with full knowledge of the facts.
