If you've just retired or are about to retire, you might have considered a change of scenery for the rest of your life. But retiring abroad isn't all about choosing a destination based on the lifestyle you want to have. In this pandemic era, here are some crucial steps that you probably haven't thought of.
Assess your health needs
You have probably already researched incentives for foreign retirees, low cost of living, pleasant climate, real estate options, etc. But have you thought about your health, for example? Obviously, you are required to get expat health insurance before moving, but make sure to get the best deal in case you need emergency care. Are health facilities accessible in your new city, and do they meet your expectations? Are you eligible for the local health system, or will you have to return to your home country of origin or move abroad for more affordable healthcare? Does your health insurance cover healthcare you might need internationally? Besides, whether you are moving alone or with your partner, make sure to have a list of emergency contacts handy. Prevention is better than cure.
Evaluate your financial and tax commitments
If you're planning to spend the rest of your life abroad, make sure you have the appropriate budget. For example, if you are receiving a pension from abroad, make sure that it will be sufficient, depending on your situation, whether you are moving alone or with your partner. Pay particular attention to the exchange rate and the cost of living in your host country. Check whether you have any financial or tax obligations in your home country or your host country. You probably wouldn't want any unpleasant surprises in the future, such as penalties on bank loans or any credit facilities.
Buy or rent a property?
What are your means and expectations regarding accommodation? Does it make more sense to buy a property than to rent long term, keeping in mind that you may not be able to take out a bank loan in your host country once you have retired? Is buying more profitable than renting? What are the perks of buying property in your host country? For example, some countries offer permanent residency or even citizenship against real estate investment, so make sure to inquire. What about the property you own in your home country? Are you considering renting or selling it so that you can purchase your new home or keep it as a legacy for a dear one? In the case of real estate transactions, whether in your home country or abroad, keep in mind that there might be taxes and other fees besides the notary fees.
Inheritance planning
Owning a property in your host country is good, especially if you are moving with your spouse or partner. But have you thought about the future? Inheritance is something that people tend to overlook when they retire abroad, especially if they are moving alone. Make sure to be aware of the laws in your host country regarding inheritance. If you have family in your home country, writing down a will might be more appropriate. Check whether there is any inheritance tax in your host country to avoid inconvenience for your heirs. If you own property both abroad and in your home country, check whether a single will can do or whether you need to make more wills depending on the countries of ownership.
Planning for death overseas
Death is a step of our life that we all expect, but it's best to plan it when we can. Unless you are moving with your partner or spouse or you have remarried abroad, it is a good idea to think about how you want your funeral to be. Would you prefer them to be held in your host country, or would you rather be repatriated? Either way, make sure you have handed over this delicate task to somebody you trust -- family, your spouse or partner, or a very close friend. If you prefer to be repatriated, make sure that your insurance covers it because such a procedure can involve substantial costs. If you want your funeral to be held in your host country, make sure you are aware of the rites and customs and the laws and protocols relating to the death of expatriates.
Keep your essential documents handy
Make sure to inform a trusted person where you have kept your identity documents, such as your passport, proof of address, your residence permit, your insurance contract, your will and your funeral plan if you have any, just in case. Also, ensure your dear ones have the contact details of the nearest embassy or consulate to your home so that they can inquire more easily about the next steps.
The excitement of starting a brand new life abroad may lead you to forget about these steps that might be crucial in the long run. It's even better to think about them before retiring abroad. So you are advised to seek legal advice if you have doubts or simply when planning your retirement overseas.
