The Art of Getting More Income in Retirement: Part 2 When you reach retirement and [...]
Adventurous Pensioners: Retiring AbroadCreated by Arabela in Retirement and pensions
As we pay down our mortgages, order help adult children move into their own homes and welcome our grandchildren into the world, erectile it’s time to start thinking about our own next steps. For most people, the dream of living an exciting life in an exotic location abroad is unattainable, but as you enter your 50s and 60s, the timing may be just right.
The problem with traditional destinations
In decades past, adventurous pensioners could easily find themselves travelling to any corner of the globe to states that were part of the Empire and then the Commonwealth. Commonwealth countries like Canada and Australia still have the highest concentration of expat pensioners today, but these numbers are likely bolstered by people who moved there decades ago. Now, these former top destinations have all but stopped the easy migration process for pensioners, unless they already have family there or are very wealthy. Without family, it could take up to £500,000 to get an Australian visa and permission to live there in retirement – and the minimums are even steeper for pensioner visas in places like the United States New Zealand.
Bargain retirement properties along the Mediterranean have also been snapped up, leaving it often too expensive for pensioners to deal with the cost of living and increasing poperty values of these popular retirement destinations.
While it’s easier to get family to visit if you retire within Europe, there are some amazing benefits to retiring in sun-soaked tropical countries that are actually courting your pension fund instead of actively turning away pensioners. Malaysia, for example, has a “My Second Home” scheme that allows pensioners to move in with just a monthly income of £2,000 and total pension assets of £70,000. Since they launched the scheme, thousands of Brits have taken advantage of the low cost of living, low crime rate, and low amounts of red tape that Malaysia offers.
The Philippines also offers a similar scheme, while Thailand only requires assets of £14,000 and proof that you will receive a reliable annual income. Meanwhile, retiring in Indonesia or Bali only requires having proof of income of around £300 a month. Of course, you’ll need to research any and all possible locations because while the cost of living may be cheap and the weather warm, you’ll have to take crime rates into consideration. However, remember that crime rates are usually high in big cities, and that the “crime capital of South-East Asia”, Bangkok, does not paint a picture of the rest of Thailand!
Saving for retirement
If you dream of retiring abroad, one thing’s certain: you’ll need to start saving. It’s never too late to start working towards your dream retirement. Even if you don’t like the idea of saving into a pension, you can save towards retirement with a more flexible stocks and shares ISA, from providers like Shepherd’s Friendly. Start saving now, and even if you don’t end up retiring on a sunny shore, you’ll have enough to see you through a comfortable retirement surrounded by your loved ones at home.