There are a lot of reasons why people might be interested in retiring abroad. For example, their prospective home might have a more pleasing climate. Furthermore, their currency might be worth more in their prospective home, which can combine with the previous point to make their retirement more comfortable than otherwise possible. However, it is important to note that retiring abroad can have its own complexities, which is why interested individuals must plan ahead to ensure the right results.
Here are 10 potential pitfalls to watch out for when choosing to retire abroad:
Limited Sources of Information
First and foremost, making retirement choices based on research using a limited selection of sources is a bad idea. This is because each source of information has a limited perspective, meaning that a smaller selection of sources can cause interested individuals to miss out on information that is relevant to them but not so much to the people writing those sources.
Failing to Get Personal Experience
In particular, interested individuals should get some personal experience for what it is like to live in their prospective homes because it is the single best source of information for whether they will want to settle in for the long run or not.
Choosing to Buy a Home As Soon As Possible
As a result, interested individuals should never buy a home in their new home as soon as possible. Instead, they should rent for a few months so that if they have regrets about where they have chosen to live, they will be able to return to their previous country of residence without having to incur huge losses from selling a home on short notice.
Falling for All or Nothing Thinking
In fact, interested individuals should never fall for all or nothing thinking, which is the idea that they have to pull up their roots in their previous country of residence when they choose to move to their new home. Simply put, it never hurts to have other options, which is why pulling up roots can be a bad idea in the long run.
Failing to Have a Fallback Option
Instead, interested individuals should make sure to have a fallback plan in case their experiences with their new home turn out to be less pleasant than what they were expecting. Planning for such an outcome can seem excessively negative, but it will nonetheless enable them to reverse their plans with maximum convenience.
Over-prioritizing the Tangible Over the Intangible
A lot of people get too caught up in tangible factors such as the cost of living when choosing where to retire to. This is a bad idea because there are times when people prefer one place to another for reasons that are not wholly clear to them. In which case, they should consider following their heart instead of letting the numbers dictate everything.
Paralyzed By Planning
Proper preparation is important for ensuring the best results when retiring abroad. However, there are some people who spend so much time in preparing that they never actually carry out their plans, meaning that they end up getting stuck in the same place where they are already living even though they want to head out.
Failing to Follow the Relevant Rules and Regulations
A critical component of proper preparation is knowing all of the relevant rules and regulations. In part, this means interested individuals should learn the laws for their new home. However, they should also make sure that they are meeting their other obligations to other countries, such as how US citizens still have to file US tax returns.
Failing the Consider the Weather
Sometimes, people can skip over important considerations because they are too commonplace. As a result, it is not uncommon for people to retire to what seems like a paradise but end up regretting it because they failed to consider that their new home might have its own natural disasters that they should have taken into consideration before moving there.
Being Closed Minded
On a final note, having a network of expatriates is great for people who want to get the most out of retiring abroad. However, they should also keep an open mind that will help them get to know their new surroundings as well as the people who live in them, which should help them get the most out of their new experiences.