A: When most people think about retiring abroad—say to France or Mexico—they usually get caught up in the romance of living in a different culture. They often also expect that their expenses will be lower. In reality, living abroad adds a layer of complexity to virtually every aspect of retirement planning.
Some of the issues to explore are the cost of living, access to health care, and employment options in the country you're considering as your new home base. And don't forget to factor in the cost of transportation home to see the kids and grandkids on their birthdays! To find out more about these and other issues to consider, including the impact of currency exchange fees, read Retiring Abroad? Here's What You Need to Know.
3 Questions to Ask Your Advisor
- If I'm going to retire abroad, are there ways to hedge against fluctuations in currency values?
- Will I be able to keep all of my investments in the U.S.?
- If most of my savings are in the U.S., will I have access to funds in the case of an emergency?