Welcome back to Home Sweet Home, where we check out retirement living options for Kiwi seniors. This month, we dive into what retirement might look like abroad – because there are no rules about where you can put your feet up!
Note: The following is not intended as professional advice. When considering retirement abroad, always do your own research first.
How was the weather at your place this Christmas? If you were huddling over the heater, sheltering behind a windbreak at the beach, or cancelling the festive barbecue because of rain, you might be starting to wonder if our New Zealand climate is what you really want in your retirement years. The same goes for the cost of living – which just keeps on rising. From the price of butter to ridiculously high rates, the savings you’d put aside for your retirement may be disappearing faster than you’d imagined. Issues like these, along with the cost of housing (and shortages), crime stats, and the fact many retirees now have their closest family living far from home, have some older Kiwis envisaging a more easy-going retirement in a completely different country. If this is on your radar, let’s take a look at the pros and cons of retirement abroad.
Climate calls
There are several countries ‘close’ to home that may offer a more reliable, comfortable climate than our own, and which have already attracted retirement ex-pat communities because of this. They include Malaysia, the Philippines, and Vietnam. With year-round opportunities for beaches and outdoor pools, mornings are still cool enough for a daily walk, and evenings are made for a sundowner on the deck!
No bridges burned!
Because the cost of living is more affordable in some countries, renting, rather than buying, is a realistic option. For example, an attractive 3 bedroom rental apartment in Malaysia may be found for under $500 a month. If you already own your own home in New Zealand, the rent you would receive for it could pay for the rental on a property in your proposed retirement destination. Which means you’re not burning any bridges while you test out the waters – if your retirement abroad isn’t to your liking, you can always move back home!
Half-way house
With many retirees finding their children and grandchildren now live in Europe or America, retiring to the likes of an affordable country just a single flight from home can mean they get to see their loved ones more often. In fact, the retirement home can be a gathering place and a great holiday destination where family can meet up. After all, New Zealand is a costly destination to travel to from the other side of the world, especially for adult children with children of their own.
Respect
Many retirement age Kiwis are sick and tired of being singled out as ‘entitled’ simply because they have a pension and some savings (which they’ve worked hard to accumulate). Rather than age being something that’s respected, it can be nothing short of a put down. In many other countries, however, age is associated with wisdom and experience, and the greyer your hair, the more respect you accumulate. It’s a factor to consider if you’re deciding on a country to adopt in your retirement.
Affordable leisure
One of the best things about retirement is the opportunity to enjoy more time pursuing your leisure activities. Until you realise your retirement income doesn’t stretch to club fees, equipment, or coaching. Many countries, with a much lower cost of living, can offer your favourite leisure activities for up to half the price they would be in New Zealand. Which means you can hit the greens or the court every day of the week!
Dotting your ‘i’s’
Retirement abroad may be an attractive option, but if you’re considering it, there are some serious checks you need to make first. These include visa requirements, pension portability, medical insurance, taxation, cost of living, and language. You will also want to check out whether your chosen destination offers a community of like-minded ex-pats, so you don’t feel alone. These considerations (and there are many more) should be talked through with professionals such as those from Work and Income, Inland Revenue, and emigration advisory services before you even think about taking the plunge.
Other Budget-Friendly Retirement Options
| Region | Example Countries | Typical Strengths |
|---|---|---|
| Asia | Thailand, Sri Lanka | Very low cost living, warm climates |
| Latin America | Ecuador, Colombia, Costa Rica, Panama, Belize | Low housing/food costs, attractive environments |
| Europe | Portugal, Spain, Bulgaria, Romania, Cyprus, Malta | Affordable EU living, quality healthcare |
| Africa | Morocco, Namibia | Low costs, diverse landscapes |
Retirement doesn’t have to be in your own country. Many have found retirement abroad suits them best for a multitude of reasons. Whether it’s in a retirement village, a rental, or your own home – perhaps you will, too!
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