83% of people are planning a nomadic retirement. Here’s why

For some people, returning home after a holiday is among the enjoyable elements of taking time away.

Seems that’s not the case for the 83% of people planning a nomadic retirement.

While only 16.5% of international expats said they were planning to permanently settle in one place when they retire, a large majority (83%) imagine spending their retirement in more than one location – spanning two, sometimes three, different countries.

It’s worth noting that these findings are from a survey carried out by International Living, so the results may be somewhat slanted.

Still, 83% is worthy of attention, so let’s take a look at why the idea of a nomadic retirement appeals and the financial considerations behind the lifestyle choice.

Freedom to follow the best weather or keep up with your favourite people

One of the driving forces behind the desire for a more nomadic retirement is the weather.

Instead of settling for one retirement destination, people are keen to embrace a more flexible approach – allowing them to follow the seasons, experience different cultures, and create a dream lifestyle that encompasses multiple interests.

Perhaps you too have imagined something similar, or maybe the idea of following the sunshine and spending summers in Europe before migrating farther south for the winter.

Putting weather aside, you might wish to divide time between a home abroad and a bolthole for extended visits to catch up with family and friends.

Why people are attracted to retiring overseas

As well as more freedom and more options, people considering retiring abroad are typically seeking:

• A comfortable lifestyle
• Lower living costs
• Good healthcare
• Community
• Convenient travel opportunities

Politics also influenced survey findings – 41% said “escaping the country's polarised political climate” was a factor behind their desire to retire abroad.

Meanwhile, 25.2% highlighted an interest in establishing residency or moving to enable them to gain a second passport.

The top five locations for US citizens wishing to retire abroad are:

1. Portugal
2. Costa Rica
3. Italy
4. Greece
5. Panama

Spain, France, Ireland, Mexico, and Malta also feature high on the list of dream retirement destinations.

Financial considerations for a nomadic retirement

If you’re drawn to the idea of a nomadic retirement, there are several financial implications to consider – ideally well ahead of time.

Here are just a few questions to contemplate:

• What will you do with your current home? Selling it may help fund your new lifestyle but you may be better off keeping it as a base to return to.
• What taxes will you have to pay? Although it may be possible to move around often enough not to become tax resident in any single location, it can take a lot of planning. Since taxes are a fact of life (unless you’re fortunate to live at sea most of the year), check what tax you may incur and factor costs into your budget.
• How will a nomadic retirement affect your State Pension or other security benefits you may rely on in your home country? If you’re eligible for state benefits, it’s often possible to continue receiving payments while living abroad, but not all countries are created equal, so be sure to check how the rules may apply to you and your specific plans.
• Will you need a contingency fund to cover the cost of healthcare? Research the locations you’re interested in travelling to see what costs you might incur in the event of a health issue while abroad. And take care to ensure you have adequate travel insurance in place before you jet off.
• What’s your longer-term goal? As you age, moving between locations could become too much, so make sure you have a sound plan for when you’re no longer able to travel at will. Think about where you’d be happy to settle and have the assistance you may need.

Get in touch

We provide specialist advice to British expats and international employees living around the world, and have extensive experience in advising clients on their retirement planning.

To find out how we could help you embrace a nomadic retirement free of financial worries, email enquiries@alexanderpeter.com, send an online inquiry, or call us on +44 1689 493455.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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