Hyden, Miron & Foster, PLLC Law Blog

Monday, June 18, 2018

How Much Money Do I Need to Retire Abroad?

When you are working with an Arkansas retirement plan attorney, there are several factors that you need to consider when developing a retirement plan. Some of those factors include the age at which you want to retire and the standard of living you want to maintain during retirement. The answers to these questions are very important in determining how much money you will need when you retire.  However, where you want to live when you retire is also a significant factor in calculating the amount of money you need in a retirement account before you reach retirement age.

Staying Put or Moving?

Many people plan to remain in the same town or area during their retirement. Couples and individuals work hard for years to pay off a mortgage, so they own their home free and clear of any liens before they reach retirement age. The desire not to have a mortgage payment or rent payment during retirement is an important factor for many people. For other people, staying in their hometown is more about a connection to family and friends.

On the other hand, some people choose to move to another location when they retire. In some cases, they want to move outside of the United States. Spending your retirement years abroad can be appealing for several reasons, including a lower cost of living and an exotic, historical, or isolated setting. However, moving abroad during retirement takes careful planning to ensure that you have sufficient funds to pay your living expenses while having money for activities and travel if that is how you desire to spend your time during retirement.

Determining the Cost of Retirement Abroad

As part of our retirement planning services, our Arkansas retirement plan lawyer helps individuals and couples calculate the amount of money they need to save before retirement. The amount of money you need in a retirement account before you retire depends on several factors, including age, health, life expectancy, retirement plans, and lifestyle. Those factors remain the same regardless of where you choose to live during retirement.

Even if you plan to remain in the United States, where you live during retirement impacts the amount you need each month to maintain the standard of living you desire. Different locations in the United  States have slightly different costs of living. If you choose to move abroad, the cost of living could be vastly different from anywhere in the United States.

Therefore, you must research the location or locations abroad where you think you may want to retire to establish the cost of living in those areas. In addition, you must then adjust those cost of living figures for expected inflation. Our Arkansas retirement plan lawyer can offer assistance and guidance in performing this research.

Some of the factors that you must consider when determining the cost of living abroad include the cost of:

  • Rent or mortgage payments

  • Utilities

  • Healthcare and medications

  • Food and other daily needs

  • Hobbies, entertainment, and other activities

  • Discounts and benefits for senior citizens

  • Travel to and from the United States

  • Costs of relocating to your new home

The bottom line — you may find living abroad during retirement costs less or more than you would pay in the United States for the same lifestyle and standard of living.

Seek Help from an Experienced Arkansas Retirement Plan Lawyer

The first step in determining the cost of living abroad during retirement is to meet with an Arkansas retirement plan lawyer to discuss retirement planning. If you have not yet started your retirement plan, you need to discuss your options with a retirement planning attorney now, even if you are not yet sure where you want to live when you retire. Call today to set up an appointment with an Arkansas retirement plan attorney at Hyden, Miron & Foster, PLLC.

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