Planning for Retirement in Another Country
Are you considering retirement in another country? You’re certainly
A few years ago, American retirees were flocking south to Mexico, lured
by cheap housing and a lower cost of living. The recession and the Mexican
drug wars stemmed that tide for awhile, but now more Americans than ever
are retiring overseas for the lower cost of living, access to comparable
health care and a slower pace of life.
While the cost of living in many countries is lower than the U.S., there
are several factors to consider when making a decision whether to retire
Healthcare – it stands to reason that some of the countries with the lowest
cost of living also have sub-standard healthcare. As Americans, we are
used to good quality healthcare, even if it is expensive. Also, Medicare
coverage does not extend beyond the U.S. borders, so you may need to return
to the U.S. for healthcare or plan to spend more out of pocket in your
Taxes – if you move to another country, you still have to file a U.S.
tax return. If you work in that country and make less than $102,100 in
2017, you won’t have to pay taxes, thanks to the Foreign Earned
Income Tax Credit. However, pensions are taxable no matter where you live.
Money Management – in many countries it is very difficult for a U.S. citizen to open
a local bank account. In addition, most foreign banks cannot accept deposits
in U.S. dollars, so gaining access to your Social Security or other direct
deposit funds may require wire transfers from a U.S. account, which can
be costly. Your U.S. income could also suffer due to fluctuations in the
The Dorcey Law Firm, PLC, focuses on retirement planning and asset protection for Florida residents.
Contact our Fort Myers law firm for your free consultation.