{"id":14576,"date":"2015-03-16T10:43:16","date_gmt":"2015-03-16T02:43:16","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=14576"},"modified":"2021-07-28T10:43:58","modified_gmt":"2021-07-28T02:43:58","slug":"how-to-plan-for-a-retirement-abroad","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/how-to-plan-for-a-retirement-abroad","title":{"rendered":"How-to: Plan For A Retirement Abroad"},"content":{"rendered":"

\"retire<\/a><\/p>\n

Retirement years can be the years that one can finally rest and enjoy themselves, or it can also be financial hard times, if one is not adequately prepared for it.<\/p>\n

For some, they aspire to leave Bolehland<\/em> for greener pastures, despite Malaysia being ranked one of the best<\/a>, and cheapest <\/a>places to retire in the world. According to HSBC\u2019s Life After Work survey, 34% of those who aspired a retirement abroad were left disappointed due to financial constraints.<\/p>\n

If you are thinking of retirement at the Bahamas, here are some things you need to consider:<\/p>\n

<\/span>1. What\u2019s the cost of living like?<\/strong><\/span><\/h2>\n

Retiring abroad usually requires more money than retiring locally, especially if the exchange rate is against you.<\/p>\n

Depending on where you would want to retire, it is essential to work out the necessary monthly living expenses that you may need by the time you retire.<\/p>\n

Working out the savings needed for retirement can be complicated, as there are various factors to consider, such as cost of living, exchange rate and also the inflation rate.<\/p>\n

To illustrate hypothetically, let\u2019s take Melbourne as a retirement destination to retire as is rated as one of the best place to live<\/a> in the world.
\nAssuming that a person retires at the age of 60, lives up to age of 75, have no medical complications, and the living expenses are estimated to cost around AUD$30,000 a year (higher bound, rough estimates taken from Numbeo<\/a>).<\/p>\n

<\/span>2. How much do you need?<\/strong><\/span><\/h2>\n

Here is how much it may cost in this scenario:<\/p>\n

Estimated cost of living x Retirement years x Average exchange rate<\/p>\n

AUD$30,000 x 25 years x 2.85*<\/p>\n

= RM2,137,500<\/p>\n

*Based on exchange rate<\/a> of January 26, 2015)<\/p>\n

That\u2019s not even taking inflation into account yet!<\/p>\n

This is why it is important to start saving and investing <\/a>as early as possible to grow our wealth. If you want to retire abroad in a location that costs more compared to Malaysia, you have to go the extra mile to achieve it.<\/p>\n

Consider consulting a certified professional financial planner or retirement expert to help you achieve your goal.<\/p>\n

<\/span>3. The legal aspect of it<\/strong><\/span><\/h2>\n

Most countries offer economic citizenship<\/a> investment programme, like Portugal<\/a>. The idea is for affluent high net worth foreigners to invest a certain amount of money into the country and help spur the country\u2019s economy, and in return they get permanent resident visa for themselves, and often their family too.<\/p>\n

Other ways are retirement visas or residency requirements. For example, our country has the Malaysia: My Second Home Program<\/a>.<\/p>\n

You should also take into account the expatriate process of your income and assets: the inflow of money may be restricted or subject to taxation by the host country (the country you want to retire in).<\/p>\n

Be sure to check the credibility and authenticity of the agent or company you are dealing with by referring to multiple sources online and related host government websites.<\/p>\n

<\/span>4. Tying loose ends<\/strong><\/span><\/h2>\n

Once you\u2019ve worked out the above points, and are about to embark on your retirement journey abroad, you will have to settle any outstanding affairs in Malaysia.<\/p>\n

If you own properties, you can consider selling them and bring the cash with you or rent them out to continue to have a passive income. If you decide to rent out your properties, you need to engage an agent or a property manager who can manage them for you when you are out of the country.<\/p>\n

With insurance policies, you can choose to either liquidate the Malaysian insurance and buy a local insurance at the host country or extend your current insurance policies to international coverage.<\/p>\n

The idea retire abroad with a peace of mind.<\/p>\n

Retiring abroad sounds like a great plan, but it takes a lot of planning, saving and discipline to be able to achieve it. If you aspire to retire in the Bahamas, better start cracking on the retirement planning!<\/p>\n

<\/span>Start planning your retirement with Private Retirement Scheme. Start here<\/a>!<\/strong><\/span><\/h3>\n
\r\n\t\t\t\t\t

<\/span>Do you want to get started on investing?<\/b><\/span><\/h3>\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t
Leave your details below and we'll get an expert from Standard FA to get in touch!<\/h5>\r\n\t\t\t\t\t\t
\r\n\t\t\t\t\t\t\t