Retiring overseas to beat inflation

[Nanita8140]

Hi everyone. I'm 41 years old and my husband is 45. Yes, we have been saving for our retirement and also we almost have our home payed for....bought it 15 ago..30 yr mortgage...we allocated extra payments monthly to have it payed off early. Still, considering the prices of health care and how things are going in the economy I don't see ourselves being able to retire here and live comfortably. So, we have decided that when we do retire we plan to retire to Argentina part-time to help us beat inflation. We are both Argentines and so we are at an advantage because we know the culture and the "good, the bad and the ugly" of living over there. As I studied this option of retiring over there, I have found that many Americans are (and have) retiring overseas. I have met many Americans that are now living in my country and have learned the language, the culture, and have learned to navagate the system and many say they would never come back here and definately wouldn't retire here(too expensive to come retire here). My mother who is now 71 is semi-retired....and she spends 6 months out of the year in ARgentina and lives like a queen....one US dollar gives you three Argentine pesos...and everything is much less...food, utilities...etc. SO, I was just wondering if others have consider this option and if so, to which country?....

 

[W2R]

I would never consider it, but that is just my personal preference. I have no desire to live outside of the U.S.

 

[Purron]

My DH and I wouldn't consider it because of family and friends in the US. We do, however, have some friends who are retiring to Panama. Apparently, lots of people retire there for a variety of reasons inclusing a lower cost of living. Since you are both Argentines, it makes a lot of sense for you to consider retiring there.

Clearly, you have done very well having just about paid off you mortgage. However, I wonder about how much you would really save by retiring in Argentina part time. Any savings could easily be eaten up by the cost of maintaining two homes and travel. Even if you have free housing in Argentina, most jobs wouldn't allow you to be absent for a major portion of the year. So unless you can do an extreem version of telecommuning, this may be a problem too.

 

[Nanita8140]

Purron, I don't plan to retire anytiime soon...perhaps 10 years away as I still have kids in school here. As to having a home over there and its maintenance, I already bought a home there(bought during 2001 economic collapse...very cheap)...Buying now is more expensive and alot of the people who are there now rent. As to the maintenance, it is very cheap...for example $200 property tax for the year. Utilities are rediculously cheap. But again, for me us it is advantageous because we are from ARgentina. But what surprised me in during research online is the amount of Americans are now there and many inquiring on going there. Just google and you could find some info. plus web sites(forums) where they talk about there experiences. I also read, like you, of people moving to Panama. I'm sure there are many other countries too that may be worth considering. I like Argentina because it is my country, but having grown up almost all my life in the United States, I can't move to a country that way too behind on the times....meaning, I will need to have my internet, my city cafe, theater, etc....Buenos Aires has all of that....they don't call it the Paris of South America for nothing. Well, I was just wondering about others that may consider such a move and to what countries.

 

[donheff]

I saw Epitaphios, a detective thriller, on HBO and loved the city where the action takes place. They never identified it in the show but I heard later that it was Buenos Aries. Definitely looked like the Paris of South America. I would like to spend some time in places like that but I don't think I would be comfortable unless I got pretty conversant in Spanish - easier said than done.

 

[Purron]

....they don't call it the Paris of South America for nothing.

Paris of South America! I think I need to put Argentina on my short list of places to visit

 

[Trek]

There are Americans retired to all parts of the globe. Like you, many choose their country because of some connection to it such as family or friends.

Your plan sounds fine though it's a long flight to Buenos Aires and personally I'd get tired of going back and forth every 6 months and would just stay put in Argentina.

 

[Nanita8140]

Hi Trek. It is an 8 hour flight. Everyone is different, but for me I love to fly.

 

[Trek]

Hi Trek. It is an 8 hour flight. Everyone is different, but for me I love to fly.

Don't get me wrong, I enjoy flying. I love the feeling of the airplane rushing down the runway and lifting off and the excitement of coming in for a landing in a new destination. But I can only afford coach and being over 6 ft tall with long legs, most coach airline seats are brutally short of legroom for me. So any flight over a couple hours becomes an exercise in misery. If I could afford first or even business class (or better yet my own private jet) it would be no problem.

 

[Nanita8140]

Trek, I think that some people who could stretch their retirement savings considerably, may look at flying inconviniences as a minor and tolerable nuisance. I mean if you read and listen to financial advisors on how much one will need to save to retire in the US (savings in the millions of dollars) as oppose to how much is needed to live the same way and perhaps much better in a foreign country you could understand that making a simple sacrifice is well worth it. I can tell you that my mom does it now. She lives like a queen six months out of the year with just her social security money($1200 monthly)....this covers all her yearly expenses...including a full time live in housekeeper and medical insurance(the top coverage of which her primary care doctor is an Argentine doctor who studied and trained in the US). Actually my mother would live their permanently but her children and grandchildren and her business(she's 71 but keeps working because she loves her job and not because she needs the money). I don't know...I'm just throwing this in as a option and not just to Argentina...many other countries...I recently heard from people moving to Eastern Europe...and others going to Dominican Republic, Costa Rica, Panama, Mexico. Good luck to you!

 

[Trek]

Trek, I think that some people who could stretch their retirement savings considerably, may look at flying inconviniences as a minor and tolerable nuisance. I mean if you read and listen to financial advisors on how much one will need to save to retire in the US (savings in the millions of dollars) as oppose to how much is needed to live the same way and perhaps much better in a foreign country you could understand that making a simple sacrifice is well worth it. I can tell you that my mom does it now. She lives like a queen six months out of the year with just her social security money($1200 monthly)....this covers all her yearly expenses...including a full time live in housekeeper and medical insurance(the top coverage of which her primary care doctor is an Argentine doctor who studied and trained in the US). Actually my mother would live their permanently but her children and grandchildren and her business(she's 71 but keeps working because she loves her job and not because she needs the money). I don't know...I'm just throughing this in as a option and not just to Argentina...many other countries...I recently heard from people moving to western Europe...and others going to Dominican Republic, Costa Rica, Panama, Mexico. Good luck to you!

Don't have to convince me of anything. If you look at the location below my avatar, you'll see I'm retired and living in Eastern Europe right now. I was just saying I personally wouldn't fly back and forth twice a year. I would just stay in the cheaper country year round. That's all.

 

[Lusitan]

I doubt I would ever willingly relocate to an entirely new country, where I have no ties of blood or family. But I can totally understand relocating to a country where you have friends/family or where you originally came from.

My wife is from the EU and we are entertaining the idea of relocating there at some point.

 

[Nanita8140]

Lusitan, I think most people follow your thinking...including me. But guess what...hard times, desperate times changes people's minds. A lot of people set for retirement don't think they will be able to do it. And as for the generation X and genration Y people, if they don't change and if the US doesn't change how in the world will they be able to retire?....America's savings trend is in the negative....the genx and gen Yare not savers. WEll, not to offend "all" Gen X or Gen Y...some do save....I'm one myself...but we are the exception, not the rule.

 

[RunningBum]

Do a search of these forums on Argentina and you'll get 6 pages of threads. Some probably have very little to do with relocating there, but a few discuss various countries to relocate to, and one on the first page specifically discusses Argentina. Feel free to add to those threads.

 

[Nanita8140]

RunningBum you may want to go to Travel to Argentina. Patagonia, Gauchos, Tango and the Pampas for your best Argentina vacation. Click on "Forum" and it will take you to a forum where Americans, Brits, and others who live in Argentina meet to talk about life in Argentina. There are probably others too...google. But I'm not saying "JUST" Argentina. There are many other countries. Its an "OPTION" because as we are all seeing, retiring in the US is very costly....and this is a forum tailored for those wishing "early retirement"...so I ask you, as hard as it is to save to retire at full retirement age, how are those wishing for early retirement going to do it?

 

[AzDreamer]

How are Americans viewed in Argentina? I'm used to living where it doesn't matter much where you are from. Generally speaking, is Argentina a melting pot like the USA or do things like where your are from and what your father did matter?

 

[retire2india]

This is not uncommon among immigrants from many low-cost countries, mostly from Asia and South America. Some want to consider retiring to their original homelands, and some want to spend "six months in the US, and six months abroad" as you describe.

My wife and I are Indian, and are considering retiring to India in 10-15 years. I maintain a blog on the topic (see link below). I started thinking about this a few years ago when I visited India and I noticed that for the amount that I pay in yearly property taxes in the US, I can cover all my expenses for a whole year in India! Things have changed in recent years due to a global boom in property values and the decline of the US dollar, but I have heard from many who have successfully ER'd to India.

Nigel
Retire To India

 

[Nanita8140]

Argentina is very accepting of other people. Argentina is a people oriented society...getting together with friends, family, neighbors is very important. I grew up here in the states so I'm very Ameircanized...but going to Argentina always freaks me out because people 'really know each other". Here in the states I know my neighbors to my left and the ones to my right and we say hi and onoccassion we chit chat...but in Argentina people will know people blocks away and they get toghether regularly. I guess it is as perhaps it was here in the 1950. But you also have hints of modernization....high tech technology, etc. In talking with Americans who are now living over there , I can say that they are really pleased with the country and the people.

Hi retire2india.....I had a very good friend from India, way back in my high school days, and I remember her father always talking about someday retiring to India. So yes, it is easier to make such a move when it is your native nation you will be going to ,where you know, love and appreciate the culture. But in the past few years there has been this trend for Americans to immigrate, but not to work as we immigrated to the US, but to retire. It is surreal to me as I would never thought it possible.

 

[Notmuchlonger]

Argentina is very accepting of other people. Argentina is a people oriented society...getting together with friends, family, neighbors is very important. I grew up here in the states so I'm very Ameircanized...but going to Argentina always freaks me out because people 'really know each other". Here in the states I know my neighbors to my left and the ones to my right and we say hi and onoccassion we chit chat...but in Argentina people will know people blocks away and they get toghether regularly. I guess it is as perhaps it was here in the 1950. But you also have hints of modernization....high tech technology, etc. In talking with Americans who are now living over there , I can say that they are really pleased with the country and the people.

Hi retire2india.....I had a very good friend from India, way back in my high school days, and I remember her father always talking about someday retiring to India. So yes, it is easier to make such a move when it is your native nation you will be going to ,where you know, love and appreciate the culture. But in the past few years there has been this trend for Americans to immigrate, but not to work as we immigrated to the US, but to retire. It is surreal to me as I would never thought it possible.

You really sound very unhappy in the US

 

[Nanita8140]

Notmuchlonger....I'm absolutely not unhappy in the US...I was just answering a poster's question as to how Americans are viewed in Argentina. I was trying to give a flavor of society over there. I'm actually inlove with both the US and Argentina and that is why I'm putting my ducks in order so as to be able to make living in both countries a reality in my retirement. What I am hating is how costly the US has become for its own people and I feel for them because many don't have the advantage that I do. Well, they don't have the advantage because this trend of immigrating to a foriegn country to retire is fairly new.

 

[DangerMouse]

We will be retiring to Australia, however that is easy for us because we are Australian.

Parts of us want to stay in the US, parts of us want to go back to Australia, whilst other parts of us want to move back to Europe.

All I know is it is confusing when you have these options.

 

[Medit8]

Retire2India- Great site. That's a lot of information to put on a public site.

I am of European descent, having lived in the US for 18 years and now living in Asia. I love it out here and couldn't envision living anywhere else in my retirement years. I'm about 18 months away from FIRE and will firmly plant my roots here. Helps that my wife is from this part of the world and my kids are born here. However, even if that wasn't the case, I would make the same choice (if I was the sole decision maker). Weather is great, food is fantastic, health care is affordable and schooling is excellent. I miss Samuel Adams, great buffalo wings and skiing. But I'll make do.

 

[martyb]

My DH and I wouldn't consider it because of family and friends in the US. We do, however, have some friends who are retiring to Panama. Apparently, lots of people retire there for a variety of reasons inclusing a lower cost of living. quote]

Never lived in Panama, but I have a friend who lives there and I've visited. I love it, and if my wife would go for it (she won't) I'd consider moving. Or...at least spending a good bit of time there each year. I'm sure I'll continue to visit.

 

[RunningBum]

Nanita, I was just suggesting that if you are interested in what others have considered with respect to retiring outside of the US you might search those past threads that have already covered this. A lot of people aren't going to bother repeating something they've already posted, when you can easily find their past posts.

Personally, Argentina has always interested me as a place to visit someday, but I have no desire to relocate there since I have no ties and can't speak the language well enough to function.

 

[lazygood4nothinbum]

i am definitely considering buenos aires. the guys there are so hot. lots of european/latin mix, woof. so maybe i'm not totally motivated just by saving money after all. i imagine myself spending at least 6 months to a year there or longer if my heart gets stolen. to that end i'm enrolling in conversational spanish classes this month.

i'm not so convinced that living overseas is so much cheaper than stateside even though most everything i read seems to say so. international medical insurance is maybe 1/2 priced off the 4k i pay now. as a single guy i'd likely live in cities for socializing so rent would be similar to the cost of staying in my house here, if not a little more expensive actually. my food consumption is maybe $5K/year here so how much will i really save? a few bucks here and there is all. maybe it adds up.

where i see saving money is that i'd like to travel and experience the world which would be much less expensive and much less of a headache without keeping a homebase here. and to that, argentina is looking real sweet.