Relocating to another city or state for retirement is a time-tested strategy for stretching retirement dollars. Now retirees are increasingly taking that concept global by expanding their search to destinations around the world. In the process, they’re partaking in what’s known as geo-arbitrage: garnering retirement income in U.S. dollars and living in places where it’s possible for a couple to live comfortably on $1,000 to $2,000 a month.
Is retirement residency even an option? One of the first things to consider in a would-be country is access. Australia and New Zealand might seem like fantastic places to land, but both countries have stringent requirements for would-be foreign residents. “It’s difficult if nearly impossible for foreign retirees to relocate there,” Peddicord says.
One of the biggest uncertainties of all, of course, is the exchange rate, given that most of your assets and retirement income, such as Social Security, will be based on dollars. There are different strategies expats can use to balance some of this risk, including putting some cash in local currency as a hedge against a weakening greenback.
Can I get the health care I need? It’s a huge world, and quality of health care varies from country to country, and city to city. Even so, in many overseas destinations, health care is as good or better as it is in many U.S. cities—and it can be considerably less expensive. Portugal, France, Italy, Malta, and Colombia are perennial winners when it comes to quality and access to health care, taking some of top spots in the World Health Organization rankings.