How to Plan a Retirement Destination

If retiring to a beach is your dream, consider such factors as medical and housing costs.

The bursting of the housing bubble, the lingering recession and the stock market plunge in the first decade of the 21st century left many retirement portfolios in less than optimal shape. An American Association of Retired Persons survey in 2010 showed that 40 percent of individuals turning age 65 in 2011 planned to continue working for as long as possible. However, if you choose the right retirement location, you can still retire at 65, even on limited funds.

Instructions

1. Outline the parameters for your retirement destination. Make two lists. On one, list all of the features you must have. On the other, list those things you absolutely do not want. Include physical amenities, such as parks or golf courses, and also less tangible elements, such as social connections or activities.

2. Evaluate your financial situation. List income sources and the amount of money they generate per month or per year. Compile any debts, recurring bills or other financial commitments that will continue during retirement. Subtract your total expenses from your total income to see what funds you will have available each month.

3. Consider international destinations and domestic locations. Compile a list of any languages and cultures you are familiar with, although international destinations are still a possibility even if language is an issue.

4. Decide what percentage of the sum you came up with in Step 2 that you are comfortable devoting to housing and related expenses. This number will go a long way to determining what destinations you can consider. Consult a cost-of-living index and jot down locations that coincide with your financial situation.

5. Research the transportation options in the cities you identified in Step 4. Check the distance to the nearest airport or major transportation hub and the frequency of flights or trains if you plan to travel extensively in retirement, or if relatives will visit you often. Rule out any cities that do not have adequate transportation options to meet your needs.

6. Identify the main medical facilities in the cities that remain on your list. Find the names of specialists in the area for any medical conditions you or your spouse already have and check their reputations. Research senior services in the area to make sure your needs will be met as you age. Rule out any cities that do not adequately meet your medical needs.

7. Visit chamber of commerce websites for the locations that are still on your list. Check out restaurants, activities and entertainment opportunities. Consider the hobbies you plan to pursue in retirement and whether these locations have the facilities to meet your needs.

Tips & Warnings

• Retiring in a foreign country can increase your purchasing power and allow your retirement savings to go much further than it would at home.

References

• Boston Globe: For Boomers Who Don't Save and Plan, a Slow-burning Retirement Crisis Awaits
• International Living: Retiring Oversees - Why You Should Consider It

Resources

• Xpatulator: International Cost of Living Calculator
• CNN Money: Cost of Living - Compare prices in two cities
• International Living: International Living's Global Retirement Index