Retirement Living on a Budget: Ten Tips for a Healthier Financial Future

Retiring is a life-changing event that brings joy, freedom, and the opportunity to live more simply. For many, the decision to downsize and relocate to an area with a lower cost of living is a wise financial move. This article will explore the factors to consider when building a budget-friendly retirement lifestyle, drawing from the experience of one retiree who has travel extensively and enjoys a varied, healthier lifestyle.

Downsizing and Relocation

Before retiring, many individuals are accustomed to living in expansive homes, such as homes in the 2000sq ft range. However, after retiring, there is often a desire to downsize, which has several benefits, including financial savings and a simpler, more relaxed lifestyle. My journey began by downsizing from a 2000sq ft home to a 4300 sq ft mansion, but as my interests shifted towards natural landscapes and gardening, the larger home became less appealing. Eventually, I moved to a 3300 sq ft home, which I now find to be just right.

Traveling and Exploring New Horizons

My partner and I decided to travel more and live wherever we wanted after achieving our retirement goals. Our plan to retire before we hit major life milestones meant that we could focus on enjoying life without the burden of work. We visited over six countries, ranging from Europe to Southeast Asia, where we lived in apartments, condominiums, and hotels. We savored various cuisines, enjoyed fresh foods, fruits, and juices, and led a moderate lifestyle. Even though we paid off our house and car in the U.S., it would cost us double to live in the U.S. even after those debts were settled. We eschewed carrying a credit card balance, despite using it daily, and maintained a middle-class lifestyle that was both comfortable and fulfilling.

Financial Savings and Health Benefits

By relocating to an area with a lower cost of living, we have significantly reduced our expenses. The savings from reduced utility bills, rent, and medicines allow us to maintain a more controlled financial lifestyle. In the U.S., we paid our taxes every year, although we did not use our health insurance, which we held back home. Instead, we opted for international hospitals and received excellent care. While the costs were slightly higher than for locals, they remained affordable, and we appreciated the attentive care from doctors who took time to explain and provide advice.

Healthcare and Quality of Life

Our decision to live in a country with a lower cost of living has also translated into improved health and happiness. We often faced long waits for tests, and we were not hesitant to ask questions directly to the doctors. The efficiency of medical services, from waiting in line for a blood test to obtaining medication, was highly valued. We found that our lifestyle was similar to what it was in the U.S., but we felt more healthily and happier.

Long-Term Prospects and Happiness

We do not know how long we will continue our lifestyle, but we hope to enjoy it for as long as possible. The absence of crime and the sense of happiness among locals make it a desirable place to live. Our healthier and happier lifestyle is a testament to the wisdom of our decision to relocate.

Ten Tips for a Healthy and Financially Secure Retirement Abroad

Set Financial Goals: Plan your retirement savings and costs to live comfortably in your chosen location. Downsize: Consider downsizing your living space to reduce expenses and simplify your life. Explore Low-Cost Living Areas: Research and choose places with lower costs of living to save money. Travel and Experience New Cultures: Plan to travel and try new things to enrich your life. Healthcare Choices: Research healthcare options in your chosen area, including international hospitals and local providers. Health and Lifestyle: Embrace a healthy lifestyle and take advantage of efficient, quality medical services. Financial Discipline: Maintain financial discipline and avoid debt to ensure a happy retirement. Adaptability: Be flexible and open to making necessary adjustments to adapt to your new environment. Long-Term Planning: Plan for the long term and remain adaptable to changing circumstances. Community Engagement: Engage with the local community to foster a sense of belonging and happiness.

Conclusion

Relocating to a lower cost of living area can offer a more financially secure and healthier lifestyle in retirement. By following these ten tips, individuals can enjoy a fulfilling retirement, both financially and emotionally, in a setting that meets their needs and desires.