If you're thinking about retiring overseas, it is important to consider the financial implications. You will want to know if there are medical facilities in the area, whether there are specialists in the area, and how long does it take to get a prescription filled. You should also check whether taxes are involved. You should also take a look to your current health insurance plan before you make a decision.
Coverage for medical insurance
Retiring outside the U.S. can pose several challenges, including lack of health care in rural areas and costly medical bills. Expats in other countries are not covered by Medicare. There are three options available for paying for medical treatment: purchasing local insurance policies, investing in international insurance or opting for no coverage at all. Here are some tips that will help you make the right decision when it comes to medical care abroad.
You can plan ahead
You must plan ahead before you retire overseas. Consider your financial needs, culture, and potential distance from family and friends. Full-time or part time plans are options. Visit the destination and see if you like the culture, economy, and lifestyle. The U.S. State Department has an extensive guide to retiring abroad. Then, decide if you want to live in the country permanently or just for part-time. After you have decided on a destination, make sure to research the country's economic and political stability.
Prices
You need to be aware of certain expenses if you are thinking about retiring outside the United States. Medicare does NOT cover retirement outside the U.S. Therefore, you will need a foreign medical insurance plan. Depending on your circumstances, you can get a plan that covers multiple countries for a price much higher than a domestic plan. If you live in a country with low healthcare costs, it may be possible to get insurance without any additional cost.
Taxes
If you're a US citizen, you can choose to retire outside the United States without paying taxes on your worldwide income. If your global income exceeds certain thresholds, such as $12,000 per individual or $400 in self-employment income (or both), you will need to file a federal income tax returns each year. You must also convert all your foreign income and assets to U.S. dollars.
Places to Retire
Retiring outside the US may seem like a risky decision, but it doesn't have to be. There are many places that offer retirement options that don't require you to be fluent in another language or have a completely new lifestyle. It's possible to have dinner with American expatriates. You will have fewer distractions, and higher living costs. You will also have access to nature and a better lifestyle.