More foreigners retiring in Morocco
A growing number of retirees decide to live abroad and while it is difficult to assess the exact number, we can easily identify the main reason for the expatriation of retirees: money, or rather its absence.
A recent study of Retirement Confidence (annual survey on retirement in the United States) conducted by the Employee Benefit Research Institute (NGO whose aim is to stimulate governments and pension funds to provide effective measures through the independent and objective research), only 14% of respondents feel “very confident” that they will have enough money to live comfortably in retirement.
For many retirees, the financial benefits of expatriation far outweigh the difficulty of family separation. For example, using Numbeo an online database in English, you can compare the cost of living in cities around the world. A comparison of holiday apartments shows that rents in Marrakech (in Morocco), are 76% lower than in Paris.
Quality care at lower cost
Estimates of the cost of living must also take into account the medical and health. There are several things to consider when making a decision on health care. For example, it is possible that the coverage of social security is limited in where you choose to live outside of France, and that means you will have to arrange for better coverage in your country of residence.
Health spending will tend to increase rapidly, and your estimate of the cost of living should take this factor into account. According HealthView Services, a research firm services that help financial advisors in their forecasts of health spending for their customers in the United States, a couple of 65 years in retirement will need $ 266,589 to cover medical care , an increase of 6.5% compared to the previous years budget.
When considering health expenditure, remember that many countries offer national social security. Foreigners are often eligible for these programs on the conditions of age and / or citizenship. Many countries of choice for retirement offer medical tourism, with excellent infrastructure and medical care. Singapore, Thailand and India have become popular places for medical treatment at a reduced price, but also for retirees looking for a more economical solution to live their retirement. Many doctors working in these countries are trained in the US or the UK, but treatment costs are much cheaper than in these countries.
Cost savings online
The digital infrastructure has dramatically simplified the means of communication and how to manage finances. With email, Skype or WhatsApp, it becomes easy to communicate in real time from abroad with friends and family, or to manage business relationships.
Similarly, online banking make it easy to manage your finances, that is if you have an Internet connection. Today, a number of companies specializing in the transfer of money online give expatriates the opportunity to transfer money abroad easily and safely, which is a safe alternative and cheap compared traditional banking methods.
The start life in a new country require sending money abroad, either to cover expenses in your home country or to buy property abroad for example. In addition to making you achieve cost savings, a money transfer company can help you build hedging strategies to lock in favorable exchange rates for future payments. In front of their large number, it is necessary to compare different money transfer providers.
The trends reflect changing attitudes
The landscape of retirement is changing and with it the attitudes of retirees from the pension. Increased interest in living and retiring abroad is visible in different ways.
More than 600,000 Americans received their social security benefits abroad in 2014, nearly 2.5 times more than in 2002, according to Social Security Administration (article). InternationalLiving.com, a magazine and a website in English that provides research and information for Americans and Canadians who retire overseas, reported an increase in demand for its search services and travel and an increase of paid subscriptions to its monthly magazine: from 39 000 subscriptions in 2009 to over 100,000 today.
According to Dan Prescher in International Living editor, the number of pensioners who receive social security benefits abroad could even be under-represented.
“While the Administration of the US Social Security shows that the number of benefit payments it sends abroad has increased over the past decade to more than 600,000 today,” said Prescher “we know that many retirees abroad choose to keep their banking activities in their country of origin. Payments are therefore included in their national banks and not in their accounts abroad. ”
It was 25 years ago, retirement abroad for Westerners had little option. However, several factors have contributed to a growing acceptance perform retire abroad including:
– Changes and improvements in technology that makes it easier to stay in touch with family and friends
– The cost of living and the growing fiscal pressure in Western countries
– Concerns of retirees do not have enough savings to cover the cost of living
According to HSBC Expat Explorer survey (in English) on retirement trends published in 2012, the countries with the largest number of expatriate retirees were:
France, with 41% of expatriate retirees
The Netherlands with 32%
Spain with 23%
The main reasons cited for choosing to retire abroad are the quality of life (62%), having family in the country (57%) and climate (50%). Retirement for tax purposes was also cited as an important factor for some.
Retiring in Morocco is not for everyone. But for those looking for adventure, travel, or simply want to reduce their pension cost of living, retirement abroad remains an excellent choice.