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 also important that you determine whether taxes will be involved. 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.
Coverage for medical 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 does not cover expatriates who live in another country. This means that there are three options for paying medical care. Here are a few tips to help you make the best decision regarding medical care while living and working abroad.
Plan ahead
Before retiring overseas, you must plan ahead. Consider your financial needs, culture, and potential distance from family and friends. Part-time and full-time options are available. To find out if the culture or economy is right for you, visit the destination. The U.S. State Department provides a detailed guide for retiring abroad. Then, decide if you want to live in the country permanently or just for part-time. Once you decide on a destination, research the country's political and economic stability.
Costs
There are certain expenses that you should be aware of if your retirement plans include a move outside the U.S. Medicare does not cover people who retire outside the U.S. So you will need to have a foreign insurance plan. It is possible to purchase a plan that covers multiple nations for a lower cost than a domestic insurance plan, depending on your particular circumstances. If the country where you are moving has low healthcare costs, you may be able skip insurance altogether.
Taxes
You can choose to retire abroad if you are a US citizen. However, taxes will not be paid on your global income if you're a US citizen. 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. A conversion must be made to U.S. currency of all assets and foreign income.
Retirement Places
Retiring outside the US may seem like a risky decision, but it doesn't have to be. Many popular retirement destinations don't require language proficiency or a change of lifestyle. It's possible to have dinner with American expatriates. You will also be able to enjoy a more relaxed lifestyle and less stress. You'll also enjoy a closer relationship with nature and a lower cost of living.