With the nation in economic turmoil for the last 10 to 15 years, more and more people are retiring to other countries. Perhaps speaking to your Idaho-area financial advisor about the opportunity is high on your list, as well. According to an article by MigrationPolicy.org, the U.S. Census Bureau does not keep track of how many Americans live outside of the country, but estimates are between 2.2 million and 6.8 million.
This is a lot of people, and very little information has been gathered about where or why these Americans leave the country. Reasons thought to be attracting Americans to other countries range from relationship and marriage status to employment opportunity. Another reason commonly associated with out-of-country moves is the protection of one’s money and financial future upon retirement, even for the simple farmer in Idaho.
So what are the best countries to retire too? An ideal country is largely based on the type of culture one desires to live amongst, although, any decent financial advisor would say that factors like government encroachment and financial risk should play a major part in any decision to retire internationally.
In this sense, countries like Norway, which a CNBC article calls the l”east risky country on the planet,” are good places to protect and even potentially grow your money. Countries like Greece or Spain, while certainly nothing like Idaho, are much riskier in terms of financial security. Surprisingly, CNBC names the United Kingdom as another high risk country in terms of investing, due to its national debt.
Other countries that CNBC identifies as financially sound include Sweden, Switzerland, Finland and Australia, citing fiscal conservancy and untapped oil supplies. Basically, if financial security is at the top of your list, prepare for some extreme climates.
A financial advisor would tell you that another important financial aspect related to international retirement is the cost of living. Even in America, the cost of living is quite different depending on where you live. For example, the cost of living in Boise, Idaho is a lot lower than the cost of living in Manhattan.
According to a Forbes article on best places to retire in 2015, South and Central American countries have the best bang for your buck, with Ecuador topping the list due to its low cost of living, combined with a steadily growing GDP, solid public infrastructure and Internet access. If the cost of living is your main concern but you are not interested in living South of the Boarder, then Asian countries such as the Philippines and Cambodia would be a good bet. Furthermore, even the financially “high-risk” countries of the Mediterranean have incredibly low costs of living.
Remember, before making any major decisions about moving internationally, speak to your area financial advisor and get as much specific information as you can about your situation in relation to the risks of retiring abroad.
Ian Carry is a finance writer reporter for Fusion 360, an SEO and content marketing agency. Information provided by Sanctuary Wealth Management.