Counting The Costs Of A Retirement Overseas
Aug. 25, 2014, Nashville, Tennessee: The cost of living, of renting a home, and of purchasing property are three critical figures to understand for any location where you’re considering retiring overseas.
Dear Live and Invest Overseas Reader,
How should you go about choosing where to reinvent your life in retirement overseas? Best made, this is a thoroughly personal decision. You should think about retiring to another country because you feel at home there and enjoy the way of life on offer. Bottom line, your heart should lead the way.
However, your head should have a say, too, of course. That is, while the best place for you to retire overseas is the best place for you simply because your gut tells you it is, you do want to look at more practical factors when considering your options.
For many, cost is key, both the cost of living and the cost of real estate. You may intend to purchase a home in your new situation overseas or only to rent one. Either way, this housing expense will be a significant part of your overall budget and should be considered separate from other monthly costs.
That's why, for our hot-off-the-presses 2014 Retire Overseas Index, we look at three pieces of critical data for each of the 21 destinations featured—the cost of living minus housing; the typical cost of renting; and the average cost per square meter to purchase property.
For the purposes of this Index, we created a starter-budget template that includes utilities (gas, electricity, landline phone, cable television, and internet), groceries, and entertainment. These would be your basic costs (in addition to housing) retired anywhere in the world. You could, of course, add costs, depending on your lifestyle and priorities. Maybe you'd like to have help around the house. In many places around the world, household help can be a bargain, making full- or part-time help with the daily chores a potential big benefit of retiring overseas. The cost could be US$150 (in Nicaragua, for example) to US$300, say, per month. However, maybe you don't want to make that investment.