Living Overseas Flashcards
By 2030, what number of Baby Boomer will have retired and what number of Gen Xers will have taken their place?
76 million versus only 46 million
Why are an increasing number of American’s retiring overseas, and what are some of the more popular locations?
Living costs in many locations in the developing world are far below those in the United States. In some locations, retirees can live comfortably just on their Social Security checks:
Quinto - Ecuador
What key demographic development has most changed retirement planning over the last several decades?
The standard age for retirement has stayed around 65, but the life expectancy has increased dramatically, creating a need to fund an average of 15 to 20 years in retirement.
According to Paeano, what percentage of retirees live in their homes until they die?
Statistics suggest that its 6 out of 7. Most prefer not to live in a retirement living facility, although the number of residents in such facilities has exploded, this simply reflects the rapidly growing total number of retirees rather a change in preference.
What is one of the key caveats Paeano offers retirees planning on relocating to a lower cost area?
Research it very carefully, and make you’re not going to want to move back to the higher cost starting point. Such move backs are very expensive since your property tax basis may reset, and home prices and other living costs may have risen significantly. Also, moving is emotionally taxing. If you are not sure about moving, keep doing more research, but stay put in the meantime.
Are retirees who relocated overseas required to pay U.S. income tax?
Unless they give up their citizenship, which many are probably unlikely to do, then they must pay U.S. federal income tax (but not any state income tax, assuming they have firmly established residency in their new overseas location)
If you move overseas and decide to drop out of Medicare, can you simply rejoin it at any time?
You can rejoin, but only at great cost. Medicare does not want people dropping out and rejoining.
