Retiring abroad – is it right for you?

Many people fantasise about retiring to a paradise island in the sun after a long hard working life. Its allure is easy to understand – a lifetime of lousy weather and hard, stressful work can lead many people to draw the same conclusions. Also, owning a home abroad, especially in a tax haven such as the Dominican Republic, can often turn out to be one of the best investments you will ever make. But while moving abroad can be a ticket to a dream retirement for some, it may or may not be the right move for you. It’s a big decision to make, and as with all big decisions, there are a number of personal factors for you to consider before making a commitment.

Probably the biggest consideration for most people will involve the distance that a move abroad will put between you and your family. You may well be picturing wonderful sunny days spent with your children and grandchildren at your large beach house, taking place on a regular basis, but the reality might not quite work out like that. Will the distance, cost, and trouble of travelling put them off, or on the other hand, could the lure of a free foreign holiday encourage more visitors than you are prepared to deal with? Also, will keeping in touch with your family by email and telephone calls offer them a sufficient level of support when they really need it?
Retirement can often be a time when people will indulge their hobbies and interests to a greater degree, but will you be able to pursue these abroad in the same way you did at home? Some hobbies, such as painting, gardening, or playing golf, may even benefit from a change of scenery and climate. However, if your hobbies are culturally or socially specific, such as amateur dramatics or music, you may want to find out if you will be able to carry these on in a similar fashion abroad before moving.

If you are unsure about moving permanently to the area, but would like to find out if it is really for you, why not rent for a year? Although this may seem like throwing a chunk of your nest egg away, renting can be surprisingly affordable, as it has lower inherent costs. For instance, you would only have to pay for the contents part of your home insurance, as the owner would be responsible for insuring the building, and you would also avoid having to pay the legal fees that property ownership entails. If, after a year of renting, you decide against moving permanently, you will therefore have saved yourself a great deal of money and hassle by trying before buying.