Retiring abroad is a great way to stretch the value of a fixed income. From Latin America to Europe, there are retirement destinations around the world that work for almost anyone. In this article, we'll look at three retirement havens for expats where the U.S. dollar goes a long way and pensioners receive great government benefits.
Many people dream of retiring abroad, but get sidetracked by the logistics. From languages to visas to home buying, retiring abroad is certainly not a light decision or an easy process. However, for some people, the benefits of moving can far outweigh the costs. After all, the lower cost of living in some foreign countries can give way to a much higher quality of life.
Those looking to retire abroad should carefully read the State Department's Guide to Retiring Abroad and check with the individual country's embassy for more information. Each country has different rules and regulations that must be followed. Another option is to consult a financial advisor or a lawyer who specializes in international retirement.
Some other great online resources, include:
Expatistan.com — A cost of living calculator that aggregates price information contributes from thousands of people around the world.
VisaHQ.com — A resource for all types of visas and related information, as well as contact information for embassies and consulates around the world.
InternationalLiving.com — One of the oldest magazines focused on living internationally, with a section dedicated to retiring abroad.
Panama: A Familiar Place with Benefits
Panama should seem familiar in many ways to U.S. retirees — the country uses the U.S. dollar and even has the same 911 emergency phone number. Panama also offers a generous retirement visa (visa pensionado) that includes discounts on entertainment, transportation, professional services and medical services, as well as exemptions for importing household goods.
Cost of Living
The cost of living in Panama is well below that of the United States in many categories, especially outside of the capital (Panama City). According to Expatistan, the cost of living in Panama City is approximately 43% cheaper than that of New York City. The most savings are seen in food, housing and entertainment, which are all more than 40% lower.