by vicky katz whitaker
copley news service
Lured by the prospect of lower living costs, warmer climates and a sense of adventure, thousands of Americans are spending their retirement years abroad. Should you be one of them? Perhaps, but only if you do your homework first.
Nearly a half-million American senior citizens have already bought into the concept of retiring to some exotic, foreign land. Their numbers are expected to grow through the next decade as the baby boomer generation reaches retirement age. Now in their early 60s, this new breed of senior tends to think and act more globally than preceding generations, the result of better education and a steady diet of television and the Internet. And it is on the Internet that dozens of countries from Brazil to Thailand frequently promote themselves as inexpensive retirement destinations, promising luxury living at low rates, breathtaking sunsets, sandy beaches and colorful, friendly locals.
While temperate-climate European countries such as Spain, Italy, Greece and Portugal may seem attractive, the cost of living and high taxes can rapidly devour retirement income, particularly in cities across the continent. Private organizations such as the Redding, Conn.-based Retirement Living Information Center (www.retirementliving.com) provide free online advice for retirees weighing a move overseas.
The center suggests that before taking such a step, you should:
Check out the country’s cost of living.
Understand its tax rules and regulations.
Become familiar with visa requirements.
Obtain health insurance (Medicare is not provided to U.S. citizens living outside the country, but you may be able buy private medical insurance or qualify for the same coverage available to citizens of the country in which you are planning to retire).
The U.S. State Department has its own list of tips for retirees considering taking up residence in a foreign land. It suggests that you:
Gather detailed information about the country where you plan to live, including culture, customs, people and history.
Learn the language of the region in which you plan to live, even if English is commonly spoken.
Seek out clubs for Americans or bicultural organizations in that country that could furnish you with information. The U.S. Embassy or Consulate may be able to provide you with a list.
Routinely scan Travel Warnings and Announcements posted online by the U.S. State Department (www.state.gov.) These daily bulletins advise Americans about civil unrest, dangerous conditions and terrorist activities, country by country.
Check with the country’s embassy before bringing in prescription drugs or over-the-counter medicines since possession could violate the law. The same holds true for shipment of medicines by mail or courier from the United States.
Obtain an international driver’s permit (available for a small fee from AAA, provided you have a valid driver’s license). Although the international license is recognized in 150 countries, you should get an in-country driver’s license as soon as you settle into your new home.
If you own assets in both the United States and abroad, you should have two wills; one according to the legal system of your adopted country, the other in step with the U.S. legal system. Each will should mention the other.
Finally, before you set your heart on an overseas retirement home, make sure that the country permits foreigners to own property. Your choices may be restricted to certain areas or limited by a cap on the number of foreigners allowed to purchase real estate in any one year.
On its Web site (www.aarp.org), the AARP has some additional pointers for U.S. citizens thinking about retiring abroad, including voting eligibility, paying for utilities, medical care and mail. Telephones and appliances built to U.S. standards may not work overseas, notes AARP in recommending a look at the World Electric Guide on www.kropla.com in advance of moving. The site also provides comprehensive information on telephone systems and other communications data valuable to anyone planning to live overseas.
CopyrightJ, the Jewish news weekly of Northern California