Taking a retirement is certainly one of the most vital decisions that you take in life. You have many things you need to consider before leaping. If you are thinking of relocating abroad, you will come across several countries that offer you a budget-friendly standard of living. With that being said, you should note that other expenses while living overseas might increase manifold which might be tough for you to surmount in the long run. Calculating the exact cost of moving abroad is never easy. It will depend on which country you are moving to. The following are some of the costs that you tend to overlook at the time of planning your retirement outside the country.
Shelling Out Money For What You Are Leaving Behind
If you have a home in the United States that requires maintenance regularly, you may have to shell quite a sum to a professional who will take care of things and duties that you used to carry out previously. Flying back home from time to time to carry out the upkeep and repairs is going to cut a deep hole in your pockets. If you decide on leaving your car behind, you have to shell out some bucks for its maintenance and insurance. These are just simple things but can cost you more than hundreds of dollars every year.
Paying A Higher Amount For Not Knowing A Language
If you move to a new location where you don’t know or speak the native language, you might have to shell out an extra amount of entertainment and services. A premium fee is always attached if you don’t know the language. It won’t be favorable for you at all as some restaurants and bars will charge you more for being a foreigner or a tourist. A grave issue might crop up when you want to hire a plumber or an electrician who doesn’t know English. Thus, your choice of workers is limited and you may have to expend a hefty price for someone who will be competent in communicating with you.
High Utility Bills
If you are moving to a country that appears to have lower costs for day-to-day living than the United States, don’t forget to check out the cost of electricity, fuel, and Wi-Fi. Internet, phones, natural gas, and power can prove to be costlier, owing to the high local taxes. You might have to shell out much more every month to lay your hands on the same utilities you used back home.
Local Health Insurance Fees
Medicare doesn’t necessarily cover health services for those individuals who are living or planning to shift outside the United States. It might be imperative to buy an international health insurance plan or expect health care costs to be bigger than your pocket. Local insurance options may be available in the country where you decide to go. Some countries do offer a comprehensive national insurance plan. You may also want to purchase a separate policy as well. Private insurance abroad might cost you less than a similar plan back in the U.S. But, do remember that even a less expensive plan might have a higher cost as you age. In case you have pre-existing conditions, you may not be eligible for certain plans overseas.
A Fluctuation In Exchange Rates
If you decide to relocate to a developing country, the local exchange rates might be advantageous for you. However, if you are contemplating shifting to a country with strong currencies, for instance, the European continent, you will soon realize that a weakening dollar eventually makes things costlier than you expected. Exchange rates do vary with time, and even if the rate looks impressive in the first place, a change over the next five to ten years could affect your daily budget badly.
Planning to pay a visit to your family back in the United States is a nice way to stay in touch with your loved ones. But, there might be instances when you would long to visit them too frequently. If a loved one doesn’t keep good health, you might stay back for weeks and months to be close to them. A few food items, electronic goods, and other stuff can also require you to spend more.
So, before you venture out to a new location or a new country to lead a retired life, consider the aforesaid expenses that you might have to incur. Take all the pros and cons into account before you take the final call.