Savvy Senior

Flu Shots: Facts and Fiction

Dear Savvy Senior,

Can you recommend some good resources to help people interested in retiring abroad? My wife and I will be retiring in a few years, and we’ve always thought it would be fun, and more affordable, to live abroad. What can you tell us?

Adventure Seekers

Dear Seekers,

Retiring Americans are choosing to emigrate for a variety of reasons–adventure, a better climate, or lower cost of living. But you need to do some homework and learn everything you can about the country and community you’re interested in–climate, crime, cost of living, insurance, taxes, visa requirements, and more.

Some good resources to help you get started are www.internationalliving.com and www.escapeartist.com on the Internet, both of which provide tons of information on dozens of countries. Also check out the Central Intelligence Agency (CIA) World Factbook at www.cia.go –click on “Library,” then “The World Factbook.”

Another good tip is to talk or network with ex-patriates who have already made the move you’re thinking about making. They can give you tips and suggestions, as well as the advantages and disadvantages and day-to-day reality of living in a particular country. Some popular websites to finding ex-pat resources inlcude www.liveabroad.com, www.expatexchange.com and www.expatforum.com.

Once you find a country or two that strikes your fancy, you need to visit multiple times at different times of the year so you can get a feel of weather changes.

To find help scoping out potential properties, or to find a local real estate agent, visit the International Consortium of Real Estate Associations at www.worldproperties.com.

Need to Know

Here are a few additional areas you need to consider:

• The Shrinking Dollar: Retiring abroad used to be seen as a surefire way to live beyond your means, and for some countries it still is. But the U.S. dollar has been in a steep decline in recent years, so your money may not stretch as far as you think. Visit www.iccfx.com to compare currencies.

• U.S. Taxes: Most people aren’t aware that you still have to pay federal income taxes even if you’re living in a foreign country full-time. You’ll owe state taxes, too, unless you sell all your U.S. real estate, or live in a no income-tax state (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming) See the U.S. Internal Revenue Service (IRS) publication 54, “Tax Guide for U.S. Citizens and Resident Aliens Abroad” at www.irs.gov, or call (800) 829-3676 for a free copy.

• Healthcare and Insurance: at Medicare won’t cover you outside the U.S. Your best bet is to contact the U.S. embassy or consulate (see usembassy.state.gov) in your destination country to see how you can be covered as a foreign resident. Or you may want to buy a policy (see www.eglobalhealth.com) that will cover you wherever you live. You can also search for internationally accredited hospitals at www.jointcommissioninternational.org.

• Social Security: This is the one area you don’t need to worry about. Your Social Security benefits will generally follow you wherever you go, with a few exceptions. You can have your benefits deposited into your bank account either in the U.S. or in your new home country. See Social Security publication 05-10137, “Your Payments While You Are Outside The United States,” at www.ssa.gov/pubs/10137.html