Personal Finance Guide

Posts Tagged ‘retire’

More and more people are retiring abroad. However, before you pick a foreign country and retire there, there are certain things you should consider. Below is a checklist of how to retire abroad if you are thinking of retiring aboard. Retiring abroad has many appeals for retirees. Although, you can just pick up and go to a foreign country, it is not as easy to retire there.

Social Security when retiring abroad One of the most important things to consider when wanting to retire abroad is social security. You should still be able to receive social security checks wherever you are, abroad or not. However, you may want to set it up so that your social security checks are deposited in a US bank because some countries have restrictions on social security checks especially.

Taxes when retiring abroad

Another important factor when retiring abroad is taxes. You need to learn the new tax rules of the foreign country you are retiring to. You also need to look into the IRS rules and how US citizens are taxes even when they are in a foreign country. You will qualify for many tax deductions when retiring abroad as well as receive many tax credits. In general, US federal taxes are payable on pensions sent abroad and state taxes may apply under the same tax rules.

Other factors to consider when trying to retire abroad

Apart from complying with the US rules on living and retiring abroad, you need to consider many other factors to be able to retire comfortably in a foreign country. You need to ensure that you know what to expect when retiring in a foreign country. One visit to that country is not enough to determine if you will be happy there for a long time. Weather and economic stability of that foreign country need to be considered. You may also want to learn the language of that country if it is not a language you can already speak. Then there is a big question concerning finances such as how much it will cost to live in that country, how much the houses are as well as property insurance, car insurance, medical care, health insurance, and other costs associated with living in that specific foreign country.