Saving money for retirement is a constant during our everyday thoughts, effecting our spending habits and overall lifestyle. A major question on the mind individuals who strive to save money for retirement is how their lives will be molded by the quality of living they will be able to afford. Many dream of settling abroad during their “golden years.” A decision of this magnitude should not be taken lightly, as the idea of leaving everything we know to settle to in an unknown place is a huge move to make. Most people look to settle to their ancestral land or a place where they worked, studied or enjoyed vacationing on a budget. Others are enticed by generous retirement perks and attractive tax incentives offered to Americans by many foreign countrie: an enticement which funnels new funds into their local economy. Prior to making a decision of this magnitude, examining the local customs, local environment, climate, and the people is important. Understanding personal security, access to medical care, the availability of real estate and how far their U.S. dollar will stretch in this foreign land are important factors to consider before a move.
That being said, there are many pluses to considering a move outside the United States. If your retirement savings will support it, and you are able to uproot your lifestyle to head south – or north – of the border, here’s an overview of the top three beautiful and affordable paradises that could make for a comfortable and exotic lifestyle after you retire.
1. Costa Rica
RetireInCostaRica.net ranks Costa Rica as one of the top five emerging real estate markets in the world. The government offers substantial tax breaks to all new home owners… and housing can be had at rates discount far below what one will ever see in the States. Costa Rica maintains a type of retirement structure that does not tax retirement income. Ashealth care advances have allowed many to remain active well into their 60′s – and beyond – many retirees choose to go into business for themselves, and living in a region where retirement income is non-taxable can mean an added bonus for you! Costa Rica makes an ideal spot to set up shop due to its famous “Free Zones.” According to WestNet. Free Zone refers to ( literally) a zoned area allows certain kinds of businesses to operate with 100% tax exemption. They specially welcome import/export focused businesses, in order to build the local economy. Aside from the financial benefits, Costa Rica offers a tropical climate with gorgeous scenery. In addition, it has been touted that many people can afford to live on less than $2k per month, with a very comfortable retirement lifestyle.
2. Koh Samui, Thailand
Looking to live within your means, yet retire retire lavishly on a fixed income? Koh Samui, an island in Southwest Thailand may beckon as your retirement haven! Here, the exchange rate allows anyone with a decent retirement fund to enjoy high-class luxuries. According to BKKPages, one Thai Baht is equal to roughly three cents USD. Rental properties in Thailand can readily be found for between 3k and to 10k Baht per month – equal to about $90.00 to $300.00 USD. Thailand is home to beaches with crystal water, which in Koh Samui, would likely be within walking distance of your property. Climate and temperatures generally range from around 80-90 degrees in the winter and from 90-100 during the summer months. Golf is big in Thailand, with numerous professionally designed courses to be found in the countryside.
3. Capetown, South Africa
Over the past decade, South Africa has grown in popularity as an exotic place to retire. Recently, the historic city of Cape Town has received a five star rating on eOpinions.com. The climate in South Africa varies from temperatures of 90 to 100 degrees during the day in the summer months, falling close to freezing by night. South Africa is another place where the exchange rate allows those with average savings to live more than comfortably, with one U.S. dollar equal to about eight South African Rand (ZAD), according to the universal currency converter at XE.com. The Real Estate market is currently expanding at mind-boggling rates, and is is entirely open to foreign buyers. Rental properties in South Africa average between $300 – $700 USD, allowing for a very low cost of living. Although this country has had it’s share of political and social turmoil, those days appear to be long past. South Africa has pretty much everything an expat would want – cuisine, bulture, weather, beautiful scenery and wildlife. With English as the main language, it is universally comfortable for Americans and Europeans alike.
Enjyoing a first class standard of living abroad on a low budget is definitely within reach, if you’ve been working toward saving money and planning for your financial future.
How are you saving for retirement – and if you could retire anywhere in the world, where would it be?
