Some tips on retiring abroad

[manofsteele69]

http://money.ca.msn.com/retirement/gordonpowers/why-retiring-abroad-isnt-for-everyone


Looking to stretch that strong Canadian dollar even further in retirement? The answer for some Canadians is moving to a country with a lower cost of living.

Some three million of us live abroad, not counting military and embassy folks. And while most of these are naturalized Canadians returning to their first home, many are retirees looking for a new one.

Do you think you could be one of them?

Tax laws, medical care and security may not seem that important when you're dreaming of gentle tropical breezes but they quickly become a preoccupation once you move to another country.

Living full-time, year-round in another country is quite different from a holiday stay. That’s why, rather than tell you to jump on the next flight, those who've headed overseas preach caution even though the financial benefits are often compelling.

In many places around the world, you can enjoy a high-quality lifestyle for just a fraction of what it costs here at home. Currency fluctuations notwithstanding, household help can be yours for pennies on the dollar; food is cheap; and a home can cost you 50-75 per cent less than it might in Canada.

Earlier this year, International Living magazine rated 22 countries in eight categories: real estate, special benefits, cost of living, ease of integration for foreigners, entertainment and amenities, health care, retirement infrastructure and climate.

The magazine looked at costs for a variety of items from Internet service to food and talked with expats who’ve made the move to get a handle on more subjective issues like how easy it is to make friends or get around.

Of the 22 countries rated, the Dominican Republic — a popular vacation spot for Canadians — finished at the bottom with an average score of 71. Leading the list was Ecuador (91), followed closely by Panama (89).

Let’s go with Panama, a choice that Karen Ann Miles and her husband made 18 months ago. With three grown children, they’re relishing retirement in a beautiful setting where there’s no snow to shovel — but the move wasn’t an easy decision.

“Chucking it all and moving away from friends, family, our jobs, our coffee place and everything we’d ever known wasn’t a step taken lightly and was a serious emotional and financial commitment,” she admits.

But they’re not coming back anytime soon.

With a population of fewer than four million people and a square mileage slightly larger than Nova Scotia, Panama is roughly five hours by plane with regular and charter flights out of Toronto.

[JDR]

The weather varies by region but is generally warm, although the humidity and temperature are often lower than in Florida.

Spanish is the native language — although English is widely spoken, at least in the urban areas — and Panamanians are generally accepting of people from elsewhere.

Medical care is excellent, the currency is the U.S. dollar, and, unlike some other Latin American countries, foreigners in Panama have all the same property rights as citizens.

Thanks to the country’s pensionado program, ex-pat retirees can save as much as 50 per cent on restaurant meals, in-country airfares, prescription medicines, and certain real estate costs, explainsKathleen Peddicord, author of How To Retire Overseas — Everything You Need To Know To Live Well Abroad For Less.

A compact city of a million-and-a-half people, Panama City is more expensive and cosmopolitan than the rest of the country. Think of it “as Toronto without traffic signals,” says Miles, who settled in the decidedly cheaper and more rural Azuero region.

But the question of “expensive” is relative, Peddicord notes. You should be able to rent a comfortable, well-located apartment in less chic Panama City neighbourhoods like El Cangrejo for about $800 a month.

A reasonable overall budget for living in a fairly attractive part of the city would be less than about $2,000 a month, including rent, utilities, groceries, and a $300 entertainment allowance, she estimates.

That’s quite a bit less than you’d pay in just about any Canadian city and that amount drops even further as you move across the Panamanian countryside.

A low cost of living is great, of course, but your bigger concern should be the quality of life your retirement budget is likely to provide. Finances aside, ask yourself the following:

Do you thrive on change?
Are you comfortable in new situations and with making new friends?
Are you okay with not living close to family?
Can you speak or learn a new language?
Are you intrigued by foreign cultures and customs?
Is your partner equally amenable to moving overseas?

No matter how positive you feel about these issues, it’s not going to be easy.

“We’ve seen many people come to Panama and rushing in to buy land or committing to working with a developer only to have their dreams shattered or to get deeply frustrated with the process and ruin their health,” Miles warns.

But, happily, that hasn’t been her experience: “We love the easy pace, the people and the weather,” she says. “Do we miss our friends and family in Canada? Yes, pretty much every day. But we’re thankful that we’re able to realize this adventure.”

Perhaps you’ll feel the same way too.

[Jao]

http://money.ca.msn.com/retirement/gordonpowers/why-retiring-abroad-isnt-for-everyone


Looking to stretch that strong Canadian dollar even further in retirement? The answer for some Canadians is moving to a country with a lower cost of living.

Some three million of us live abroad, not counting military and embassy folks. And while most of these are naturalized Canadians returning to their first home, many are retirees looking for a new one.

Do you think you could be one of them?

Tax laws, medical care and security may not seem that important when you're dreaming of gentle tropical breezes but they quickly become a preoccupation once you move to another country.

Living full-time, year-round in another country is quite different from a holiday stay. That’s why, rather than tell you to jump on the next flight, those who've headed overseas preach caution even though the financial benefits are often compelling.

In many places around the world, you can enjoy a high-quality lifestyle for just a fraction of what it costs here at home. Currency fluctuations notwithstanding, household help can be yours for pennies on the dollar; food is cheap; and a home can cost you 50-75 per cent less than it might in Canada.

Earlier this year, International Living magazine rated 22 countries in eight categories: real estate, special benefits, cost of living, ease of integration for foreigners, entertainment and amenities, health care, retirement infrastructure and climate.

The magazine looked at costs for a variety of items from Internet service to food and talked with expats who’ve made the move to get a handle on more subjective issues like how easy it is to make friends or get around.

Of the 22 countries rated, the Dominican Republic — a popular vacation spot for Canadians — finished at the bottom with an average score of 71. Leading the list was Ecuador (91), followed closely by Panama (89).

Let’s go with Panama, a choice that Karen Ann Miles and her husband made 18 months ago. With three grown children, they’re relishing retirement in a beautiful setting where there’s no snow to shovel — but the move wasn’t an easy decision.

“Chucking it all and moving away from friends, family, our jobs, our coffee place and everything we’d ever known wasn’t a step taken lightly and was a serious emotional and financial commitment,” she admits.

But they’re not coming back anytime soon.

With a population of fewer than four million people and a square mileage slightly larger than Nova Scotia, Panama is roughly five hours by plane with regular and charter flights out of Toronto.

Why not post it in the Panama Section?