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Guide to Investing and Financial Planning for Americans Retiring Abroad

May 8, 2023

Retirement abroad has never been as popular as it is today. While longer, more active retirement years have been one reason American seniors are increasingly retiring abroad, financial considerations are also a compelling incentive. The cost of living outside the U.S. (especially for health care) continues to decline, and many desirable retirement destinations now provide very competitive cost of living standards compared to the U.S. Even as the economics look increasingly attractive, investment planning considerations make retiring abroad less simple than it first appears. In fact, financial planning is a critical first step in making sure that your resources are well managed in an international, cross-border environment that poses special complexities and challenges. These planning concerns run the gamut from how to create appropriate currency diversification in retirement income streams, to the legal aspects of managing probate across borders. Other issues may be more mundane but are equally important to execute effectively.

Examples include:

  • Moving cash between accounts in different countries and currencies;
  • Managing Social Security and Medicare benefits while abroad;
  • Reviewing adequacy of insurance coverage;
  • Maximizing wealth and mitigating cross-border taxation of investment and retirement income;
  • Managing compliance pitfalls and complexities.

This report outlines the steps necessary for a smooth financial transition to retirement abroad and effective ongoing wealth management once abroad. It focuses on the issues that must be addressed by the retiree well BEFORE taking the plunge of moving abroad. If done properly, timely deliberative wealth planning will provide peace of mind that no unanticipated financial surprises will upend a happy, exciting and financially secure retirement abroad.

Topics addressed include:

This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.


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