Maximising their retirement funds to enjoy a great quality of life is one of the top priorities for expats retiring abroad. Unfortunately, many of the ‘cheap’ retirement destinations are becoming increasingly expensive as they become more popular. The result is that if you want to find a cheap destination where you have a great quality of life – you may have to look a little off the beaten track. Here are some destinations where you can live comfortably for less and enjoy a wonderful quality of life – before it becomes the next expat hotspot.
Retirement destinations off the beaten track
Peru is one of International Living’s top 10 places to retire for 2018 and Arequipa offers big-city amenities combined with low living costs. The downside it is situated at an extremely high altitude of 2 335m, which can be a problem if you don’t like living at a high altitude.
This coastal resort town is situated 32km west of Lisbon is one of the most affordable cities in Portugal, with a busy marina, authentic living and a temperate climate.
English is the official language in Belize and Cayo is situated inland offering lovely rainforests, rivers and fertile soil. This destination is a lot more rustic, with fickle electricity and unpaved roads – but it makes up for it with its wonderful climate and the fact the country exempts qualified retirees from many taxes.
Phnom Penh, Cambodia
Cambodia’s capital city offers big-city living on budget prices with some of the lowest cost of living of all the expat-friendly options. Many Cambodians are fluent in English and expats with moderate retirement incomes can enjoy a life of relative luxury.
Las Terrenas, Dominican Republic
Situated on the Dominican Republic’s northeast coast, Las Terrenas has a European flair, a new international airport and a good infrastructure including a new hospital.
Make the most of your retirement with your South African retirement annuity
Many South Africans living abroad are unaware that their relocation abroad enables them to access certain financial investments like retirement funds a lot earlier than they would be able to if they were living in South Africa. This is possible due to a change in tax legislation that came into effect in 2008.
Cashing in your retirement annuity and moving your funds abroad affords you with many financial opportunities:
- If are retiring overseas, withdrawing your retirement annuity means you can utilise it in the currency of your new home, which simplifies life because it allows for the better matching of assets to liabilities when calculated in the same currency.
- You can withdraw all your funds without incurring any early withdrawal product penalties as long as you pay the withdrawals tax liability
- You can use your retirement annuity funds for any purpose – whether you wish to top up your existing retirement funds abroad or invest in a new home.
- Withdrawing your funds helps protect them from the volatile effects of the rand – and if you withdraw your funds at a time when the rand is trading strongly against your new currency, you will benefit even further.
At FinGlobal we have helped thousands of South Africans living abroad cash in their retirement annuities before the age of 55, so they can make the most of their retirement abroad. To find out more about how we can assist you with this process, contact us today.