Dreams of retiring or starting a new chapter in a foreign land often evoke visions of sun-kissed beaches, vibrant cultures, and an exhilarating sense of adventure. However, amidst the allure and excitement, there lies a trove of crucial considerations that are frequently overlooked but hold power to shape your experience in ways you never anticipated.
A team at International Citizens Group has delved deep into the realm of international relocation, unearthing the ten most captivating yet often disregarded pieces of advice that can make all the difference for those embarking on this remarkable journey.
#1 Tax Obligations:
Americans who move overseas must file tax returns in the USA and pay taxes on earnings exceeding a certain threshold. Additionally, becoming a resident of your new country may entail tax obligations there. Failing to account for these taxes can substantially impact your budget more than anticipated. You must also report foreign bank accounts over $10,000 and ensure other assets are appropriately disclosed.
#2 Estate Planning:
If you have created an estate plan that involves trust, it’s possible that it won’t be acknowledged in your new country. Estate taxes also vary greatly depending on the country of residence. To navigate these complexities, it is advisable to have your estate plan reviewed by a financial planning expert familiar with the regulations of your new country.
#3 Life Insurance:
Most life insurance policies obtained in your home country may not provide coverage if you pass away while retired overseas. To ensure comprehensive protection, consider getting an international life insurance plan that offers coverage regardless of location.
#4 Medicare Coverage:
It’s important to note that Medicare does not cover medical expenses incurred in other countries. However, maintaining your Medicare coverage is essential for visits back to the USA if you decide to move back permanently. Enrolling by age 65 is crucial to avoid penalties.
#5 Healthcare Expenses:
If you plan on living in a country with “free” healthcare, remember that this may not apply to foreigners. Depending on your pre-existing health conditions, you may be unable to enroll in the healthcare system. This means that as an ex-pat retiree, you may need to invest in private health insurance.
#6 Medication:
Medications commonly known by brand names in your home country may have different names overseas. Ensure you have both the generic drug name and brand name provided by your doctor, facilitating communication with healthcare providers in your new country. It’s also essential to verify if any medications are illegal in your destination country, including prescription and over-the-counter drugs.
#7 Mobility:
If you plan on traveling by airplane with a transportation wheelchair, it’s important to note that some airlines may have restrictions on the batteries used for these chairs. Even if the batteries are technically allowed, some airlines may still refuse boarding, which can be very inconvenient for wheelchair users. If you plan to bring your power chair to regions like Europe, Asia, Africa, or Oceania, ensure you have a compatible 220-240 volt charger for your battery, or consider upgrading your chair if necessary.
#8 Climate:
Spending time in your chosen destination during the off-season is highly recommended. While a place like Thailand might be delightful in November, the monsoons from July to September could present unexpected challenges. Likewise, individuals who have only experienced Costa Rica during March or April might be surprised by the rainy season lasting from May to December. Knowing weather patterns that may differ significantly from what you initially experienced is crucial.
#9 Medical Care/Language:
Receiving medical care in English can be challenging when traveling to a destination where English is not the primary language. In emergency situations such as heart attacks or strokes, effective communication with medical professionals is crucial. If you are not fluent in the local language, it is important to identify medical facilities where doctors can treat you in your preferred language. International medical insurance plans can help simplify the process by assisting in locating private facilities with English-speaking professionals.
#10 Cultural Adjustment:
When relocating to another country, it’s essential to prepare for adjusting to a new culture, customs, and way of life. Be mindful of potential cultural differences that may affect social norms.