Escape the Usual Retirement Script: Live Luxuriously Abroad
Retirement planning can be a maze of complications, but the path to an early or more lavish retirement can be surprisingly simple: reduce your cost of living. As Tommy Sikes, founder of Traveltirement, points out, “The big knob you can turn is cost of living.”
Consider this: in the United States, a middle-class retirement could cost around ,000 annually. But in southern Italy, with the same income, you could live like royalty, owning or renting a home.
1. Explore Hidden Gems
When seeking cost-effective retirement destinations in the US, New York and Los Angeles are likely off the table. The same holds true for Europe, Sikes advises. Paris, Rome, and Milan remain pricey, and luxury hotspots like Lake Como and Saint-Tropez may not offer what you’re looking for.
Instead, venture beyond the popular spots into the countryside. “We’re not talking about the middle of nowhere,” Sikes emphasizes. “There are countless small towns and villages with infrastructure, high-speed internet, and medical offices.” They may lack the glitz and glamour, but they allow you to spend less on necessities and more on what brings you joy.
2. Know Your Residency Rules
Before embarking on your search, research the rules for owning or renting property and residing in your target country. Sikes recommends France and Italy due to their favorable regulations for Americans.
“There are zero restrictions on Americans buying property in France or Italy. You don’t even need to be a resident,” Sikes says. You can purchase property remotely.
Establishing residency may require further research. US passport holders can reside in the Schengen area for up to 90 days within a 180-day period. For full-time residency, explore citizenship or visa options.
3. Seek Professional Guidance
Living on a fixed income in retirement demands careful planning, especially abroad. Tax laws can vary drastically across countries due to international treaties.
“You need people in the country to assist you with administrative tasks. Some countries are notorious for their bureaucracy,” Sikes warns. If you plan to rent out your property, find a reliable property manager. Even when you’re not renting, you’ll need a plan for when you’re away for extended periods.
Sikes emphasizes the importance of hiring professionals, especially when navigating real estate transactions. “There are many reasons to budget for working with a professional and not trying to figure it out for yourself.”
Consider Traveltirement’s newsletter and social media channels for insights on affordable homes in France and Italy. Remember, retiring abroad can provide an enriching and luxurious lifestyle at a fraction of what it might cost domestically.
