Can retirement overseas really be as good as sipping a margarita while the sun sets on fishing boats parked on the pebbles of a palm-lined beach in a Costa Rican village? Or watching in wonderment as your glowing rice paper lantern rises into the night sky with thousands of others to create a spectacle during Thailand’s Yi Peng festival?
“Yes,” say a growing number of American expats who find that nothing beats the adventure of overseas living while they stretch their retirement budgets further than they can back home.
“No,” say those for whom overseas retirement is a bust. They tell tales of culture clash, red tape, language barriers, disappointment and ripoffs. Or their circumstances change, and they just want to return home.
So, how can you know which camp you might end up in if you try retiring overseas?
That depends a lot on you — your mindset, your finances, your health. But perhaps the best way to learn what might be in store if you retire abroad is to seek out expatriates who have gone before you.
Following is a glimpse of the good, the bad and the ugly encountered by those who have left the U.S. — along with their advice for anyone considering spending their golden years in a foreign land.
Expecting the unexpected
“The key to success is to keep an open mind in all aspects of retiring overseas,” says Kathleen Peddicord, publisher of Live and Invest Overseas and author of the book “How to Retire Overseas.” Her company hosts conferences and publishes reports on overseas opportunities.
You can prepare for all the practical logistics of renting, buying or even building a home in a new country, getting a driver’s license, insuring your property and car, and arranging for health care. But you’re just not going to know what it takes for real until you face it, Peddicord says.
“Leave all your expectations at the border,” she advises. “Nothing will work as expected and everything will be harder and take longer than you can imagine.”
The adventure is still worth the effort for most, says Peddicord’s husband, Lief Simon, real estate editor for Live and Invest Overseas and director of its Overseas Property Alert. Only one or two out of every 10 people who retire overseas are unhappy, he estimates.
And sometimes when it doesn’t work out, the answer isn’t moving back to the states, Peddicord says. A friend of hers moved to Spain three years ago but didn’t like it. She checked out neighboring Portugal, moved there and is loving it.
Once you’ve made your first move abroad, the second or third is easier, says Peddicord, an American expat who lives in Panama City, where her company is headquartered, and who previously lived in Ireland and France.
For Stephen Anderson — author of “Retiring in Mexico: The Good, The Bad, and The Ugly” — the longer he lived in the Chapala area of Mexico, the more he realized “this is a country of crime and corruption, and foreigners are the targets of choice,” he says.
Anderson’s book details “a lot of terrific things about living in Mexico” but also what he calls hidden costs and a lack of consumer protections exemplified by his failed dealings trying to remodel his home.
Corruption is a part of the landscape in some countries, Peddicord acknowledges, but she says you don’t have to buy into it.
Retirees might find an immigration official holding a hand out for an “expediting fee” to handle papers, she says. A cop who stops you for a traffic violation in a hot climate might tell you he would rather take a friend out for a cold drink than write you a ticket, but he has no money.
Once you’re known as a payer, word gets around and others ask for bribes, Peddicord says. Also, if you pay a bribe to get work done and the work does not get done, you have no recourse.
“If you hold your ground, word will get around that you don’t pay,” she advises. Unscrupulous officials will move on to target someone else.
Simon describes being pulled over in Panama. When an officer suggested an alternative to a ticket, they politely told him, “No, go ahead, write the ticket, please.” The cop sent them on their way.