The Social Security Administration estimates the number of Americans retired abroad at almost 400,000. In the period 2010 to 2015, the number of individuals retiring overseas jumped 17 percent, and is expected to grow as the Baby Boomer retirement wave crests.^* If a client asks you about retiring overseas, here’s what you should ask to help him or her with making that decision.

For individuals contemplating hanging the hammock somewhere abroad, here are some important questions to answer:

Have You Visited Your Proposed Retirement Location?

Visiting Costa Rica during its dry season is an entirely different experience from its rainy season. Make sure you advise your client to visit during the least favorable season, and that they stay for an extended period of time in the area that they are considering.

What are Your Lifestyle Goals?

The standards for evaluating a vacation experience are very different from a permanent home. For a vacation, many people may be happy with the slow pace and simple life of an ocean side villa. However, a lifestyle in which culture, entertainment and diverse activities are limited may become stifling and unrewarding for more active, engaged retirees.

What Are the Most Important Factors for Evaluating a Retirement Destination?

No place is perfect. Therefore, the location should have the best combination of what’s most important to your client.  For instance, the personal balance of safety, ease of return travel, cost of living, lifestyle, health care quality, modern infrastructure, climate, language and attitude toward Americans will be prioritized differently by different people.

Have You Explored Health care?The demand for health care peaks in retirement, so your client will want to determine the quality of, and access to, high quality medical care. Except in rare instances, Medicare does not provide coverage overseas. This will require obtaining individual medical insurance coverage in the country in which they retire, self-insurance or buying an international policy.

Are You Ready to Learn the Language?

Learning the native language is instrumental to making friends, enjoying the culture and exploring the country.

Before moving, retirees should seek out experts to learn more about the permanent residency requirements, tax laws and real estate ownership rules governing their country of choice. Retirees should also reconsider their estate planning since U.S. drafted wills, powers of attorney and health care directives may not be recognized for assets owned in a foreign country or by the local hospital. Lastly, be sure your client discusses their plans with family members to ensure their thoughts and concerns are voiced and addressed.

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Source:

*http://www.benefitspro.com/2017/01/18/more-americans-retiring-overseas-report-says

See referenced disclosure (2) at https://blog-dev.americanportfolios.com/disclosures/