Grabbing your retirement by the horns

Retirement can give you back your life again. The children are all grown up and hopefully off of your hands, your money worries are mostly over, and you have the chance to do all the things you wanted, but were never free to do when you were younger.

Financial planning 

Of course, there is another consideration that comes into play at retirement age, and that is knowing if you have enough money to live on day to day. To ensure that, your money should be making more money for you, and you can achieve this by investing it wisely. You should already have a pension or annuity that will give you a good idea of how much money you have available for general living costs, but what about the spending that you cannot anticipate? It is worth looking into what, if any, tax breaks you are entitled to as a retiree, and rather than putting money into shares that are high risk with quick returns, put your money into slow and steady stocks that will give you a regular, reliable income.

Travel the world

Perhaps the best thing that retirement offers is the chance to explore the world, and not just on two-week vacations where most of the time seems to be spent getting to and from the airport, but long, extended holidays where you can take your time in a variety of countries and broaden your horizons. You can choose to go on a world cruise – seeing the world from the water, while only having to unpack once, or by air and road. If a round the world trip appeals to you, work out which places you particularly want to see, how long you want to spend in each location, and what type of accommodation you want to stay in. Knowing this means you will be able to see if you can afford the trip. A more cost effective accommodation solution is to rent a property rather than stay in hotels, especially if your stay is going to be longer than the average two weeks. This will also give you a taste of what it is like to live in a particular place rather than just visiting it as a tourist.

Staying abroad

Of course, the phrase ‘travel the world’ implies that you will return to your native country at some point, but what if during your travels you fall in love with a particular place or country and want to live there permanently? There might be several advantages to doing so, the least of which could be a lower cost of living that will make your retirement income and pension go further.

Many retirees are opting to live out their retirement abroad, with Panama, Ecuador, and Malaysia being particular favorites among North Americans. Panama is a favorite because in many ways it is not all that different to the US; the American dollar is the national currency, making finances easier to manage, visa applications are practically routine, and the country has developed retirement programs to encourage retirees to settle there. Another attractive feature of Panama is the vibrant and varied lifestyle it offers.

The same goes for Ecuador, which has developed extensive retirement programs to attract people, including offering discounts on international airfare and cultural events. Malaysia, meanwhile, although quite a distance away, is not so different. English is widely spoken in this Asian country, allowing for a far easier transition, but the country also offers an incredibly low cost of living. Malaysia also gives visas that last for ten years and are renewable, and perhaps most importantly, offers excellent medical care, certainly on a par with that found in the US but provided at a fraction of the price.

Expat communities

It can, however, be a bit of a wrench to move to another country without any supportive community behind you. If you think you might be a bit lonely, but are attracted to living abroad, then you might want to consider a retirement community. This is a complex where many expats live in close proximity, serviced by onsite housekeeping and other living facilities, and the community is located in a convenient area where stores, banks, and medical establishments are on hand. These types of communities provide security, familiarity, and support without sacrificing a person’s independence.

Retiring and living abroad is a great way to take advantage of missed opportunities to experience other cultures, but more importantly, it is an excellent means of making your retirement income stretch so that you can do the things you always wanted to do.

photo credit: garryknight via photopin cc