What to look for in warm climate retirement haven

In my last post  I reported on the world’s top retirement havens in International Living’s 2012 Retirement Index. But liquidating assets, packing up and moving to another country is not a decision to be taken lightly.

If you are  interested in retiring to a warmer climate with a cheaper cost of living, your first order of business should be to figure out exactly what you are looking for.

Before making a life-changing decision, you need to set aside sufficient time to do your research and figure out where in the world you can enjoy the quality of life you want in a place you can call home.

International Living has developed the following check-list:

Step 1: Make a list of your priorities and preferences. Consider cost of living, health care, infrastructure (including availability of high speed internet), safety and stability, taxes, language, cultural and recreational opportunities. Also look at how accessible it is to Canada,  climate, special benefits for retirees and the cost of real estate.

If you have retiree medical benefits, make sure you understand the out-of-country provisions. You may want to limit your annual stay outside the country to under six months or even less so you don’t compromise your eligibility for provincial medical benefits or retiree health benefits from your former employer.

Step 2: Make a list of the world’s top overseas havens. Countries profiled by International Living which appear on their 2012 Retirement Index include Belize, Brazil, Costa Rica, Ecuador, France, Italy, Mexico, Panama and Uruguay.

Step 3: Consider the pluses and minuses of each country. Check out International Living. Talk to people who have been to the countries you are considering.  Look at websites and discussion forums you are considering. exchangepats and expats.com are good places to start.

Step 4: Make a short list of three or four countries and visit them. Pack your bags and take a holiday. You should try and spend a couple of weeks in any country you are seriously considering and use the time to compare and contrast what each country has to offer.

Step 5: Cut the list to one or two countries…and plan extended stays. If at all possible, plan your trip in the worst season possible in your country of interest. During the tourist season, the sun is shining and there are lots of restaurants to choose from. But what happens in the off-season…or through the hurricane or rainy season?

Step 6: While you’re in each country, do three things:

• Meet with as many expats who already live in the country as you can.
• Meet with as many real estate agents operating in the areas of the country you’re interested in as possible. Most real estate markets outside the Canada and U.S. do not have multiple listing services
• View as many properties for sale as you can. Keep in mind that a single property may be listed with a number of agents at varying prices.

 

Step 7: Talk to international tax planners in Canada and in the country you are considering. Unless you give up Canadian residency (not an easy option or necessarily desirable alternative) you may have to file tax returns in both countries. There will also be withholding tax on payments from pension plans, RRSPs and RRIFs. Also, find out about issues like capital gains and estate taxes on any property you purchase. Make sure you know the true cost of your decision.

Step 8: Meet with a residency expert from the country you’re considering.
Determine which visa or residency permit would be most advantageous given your circumstances.

Step 9: Narrow your list to one country…and set a date for your move.

Determine whether you want to ship your household belongings with you…or buy new when you arrive. Your decision may have something to do with the type of visa you’re arranging  However, packing and shipping a household across borders can be a pain in the neck…and expensive.

Step 10: Set up a portable global office

You’d be amazed at how something as simple as paying your telephone bill can take on new dimensions in a foreign country. For hassle-free, day-to-day management of your household and/or business, you’ll need to stay connected while living abroad. You’ll also want to Skype with children and grandchildren and stay in contact using social media sites.

Step 11: Look into international health insurance policies.
Perhaps you will decide that you don’t need a private health insurance policy when you move. This will depend on the type and cost of health care that is offered in your country of choice.

However, until you are settled and have made a decision regarding your health care strategy, you should take out a private health insurance policy. Bear in mind that typically, the insurance policy that covers you at home will not travel with you when you cross international boundaries.

While this item is last on International Living’s checklist, it would be near the top of mine. Make sure you also understand exclusions, pre-existing conditions and how insurance rates increase when you age. While a move away from Canada may make economic sense when you are relatively young and healthy, provincial medicare will look very attractive if you have to pay the costs of a catastrophic long-term illness out-of-pocket.

Also read: Why 90 per cent of why retirees live close to home; Thinking about U.S. property? Buyer beware; Our 9-acre, 3 br, Florida home cost $360,000; and We bought an Arizona dream home for 60 % off .

Sheryl Smolkin is a Toronto lawyer, writer and editor. She can be contacted through her website or you can follow her on Twitter @SherylSmolkin.