How to Live Cheaply Abroad as a Senior

Many seniors want to retire to exotic locations.

Many people dream of moving to a foreign, exotic location when they retire. The key to fulfilling this dream is finding a place that will allow you to live comfortably off your savings and retirement, as most people cannot work, or do not plan on working after retirement. If you are considering becoming an expatriate, there are many things you can do to protect your savings and live like a king.

Instructions

1. Choose the right country for your needs and budget. For example, Mexico offers retirees a wide variety of scenic locations, along with a low cost of living and inexpensive health-care options. It's also cheaper to travel back and forth to the U.S. from this southern neighbor, so if you plan on visiting U.S. relatives frequently, this may be the place for you. Ecuador is another option for retirees who want low-priced housing, a low cost of living and a comprehensive healthcare system. This Latin country was ranked the top affordable country for retirees in 2010 by "International Living." Retirees who live in Panama enjoy cheap housing, low cost of living and a year-round warm climate.

2. Take advantage of senior discounts. Many countries offer special senior discounts. For example, Ecuador features price cuts on utility bills, taxes and entertainment venues for seniors. This country also offers half-price airfare for retirees. Panama features a retiree residency program that allows seniors to save on dining out, entertainment, airfare and public transportation.

3. Visit your top choices for at least a month. You need to do more than just take a vacation to your desired country before investing in real estate and uprooting your life to move there. Rent a home in a potential neighborhood and live there for a month before making any final decisions. See for yourself how expensive it is to live there by dining out, going to social events and shopping for standard items, such as bath soap or other household items. Talk to neighbors to learn how much gardeners and housekeepers really charge for typical services.

4. Learn the language. Many of the most affordable international retirement spots feature a native language other than English. While many of the most popular locations have locals that speak English, you will probably not get the best prices on things if you don't learn the local language. For example, in Mexico, there are three prices in the local markets --- the native, local price, the price for non-locals who speak Spanish and the price for non-Spanish speaking non-locals, the most expensive one. You'll be able to negotiate for yourself, without the assistance of a translator, and ensure that you're not getting ripped off when you learn to speak the local language of your retirement haven. Take classes stateside, and then practice speaking it as often as you can.

References

• "International Living": International Living's Global Retirement Index: The Best Places in the World to Retire in 2010
• "U.S. News": Money: Eight Tips for an Affordable Retirement Abroad
• CBS Moneywatch: Cheap & Exotic: 8 Great Places to Retire Abroad
• MSN Money: Retire Like Royalty in a Low-Cost Paradise