When you consider retiring outside the US, you must take into consideration the financial implications of the move. You will want to know if there are medical facilities in the area, whether there are specialists in the area, and how long does it take to get a prescription filled. It is important to find out if there are any taxes. Consider taking a look over your current insurance policy to see how it would be affected in a foreign country before you make any decisions.
You can get health insurance
Many challenges can arise when you retire outside the U.S., such as lack of access to health care in rural areas and high medical costs. Medicare doesn't cover expatriates living in another country. Therefore, there are three main options to pay for medical care. These include purchasing a local insurance policy or investing in international healthcare insurance. These are some tips to help you make an informed decision about medical care abroad.
Planning ahead
Before retiring overseas, you must plan ahead. Take into account your family's needs, culture, as well as distance to loved ones. Full-time or part time plans are options. Visit the destination to see if the culture and economy are right for you. You can find a complete guide from the U.S. State Department on retiring abroad. Next, determine if you are going to be living in the country for a permanent or temporary period. Once you have made your decision, it is time to investigate the country's economy and political stability.
Costs
If you're considering retirement outside the U.S., you must know about certain expenses. For example, Medicare does not cover retirees outside the U.S., so you'll need a foreign health insurance plan. Depending on your circumstances, you can get a plan that covers multiple countries for a price much higher than a domestic plan. You may be able to skip insurance entirely, if the country you're relocating to has low healthcare costs.
Taxes
A US citizen can choose to take a retirement abroad without having to pay taxes on any of your income. However, if you have a global income that exceeds certain thresholds (e.g. $12,000 per household or $400 from self-employment income), you will need a federal income return. In addition, you must convert all of your assets and foreign income to U.S. dollars.
Places to retire
Although it may seem risky, you don't need to leave the US to retire. Many popular retirement destinations don't require language proficiency or a change of lifestyle. You can even have dinner with American expatriates. You'll also have less distractions and lower living costs. You'll also enjoy a closer relationship with nature and a lower cost of living.