Health Insurance Warning for Retiring Expats

Summary: For expats over the age of 65, health insurance is not an option, neither is returning to the UK for medical treatment, so what

Hands up anyone who has ever thought of retiring overseas – of living the life of Riley in the sun and relaxing into a brand new life of expat parties, lazy days on the beach or beside the pool and of forgetting past cares and replacing them with a truly laid back way of life?

More and more people are actively planning their retirement abroad nowadays, never mind just thinking about perhaps making a go of it.  But it seems that there is one particular aspect of the planning process that few would-be expats are taking seriously enough.  The aspect in question is affording healthcare in retirement.

This article is really a health insurance warning for retiring expats – because a recent case that we read about where expats in Turkey are beginning to discover how poor a situation they are in, got us worrying about our readers at Shelter Offshore.

It seems that as Turkey has risen in appeal amongst those seeking an affordable retirement haven in the sun, so has the number of those expat retirees finding themselves in financial difficulties as a result of health care costs. 

In Turkey there is no national health system such as the one too many of us take for grated in the UK.  For expats who move to Turkey and who don’t speak Turkish and who have never contributed to the Turkish tax or social system, there really is only one way to get medical care – and that’s to go privately.  Whilst the cost of living in Turkey is indeed far lower than in the UK and therefore health care costs are a lot more affordable there too, health care anywhere in the world can be costly in relative terms.

Think about this scenario - if you break a bone you will have to pay for an x-ray, an expert doctor’s time in assessing and setting the break, you will have to pay for any medicine you need and all follow up visits – and this can be one of the most straightforward medical requirements that anyone of any age can need.  As an older individual, a retired expat may encounter medical issues that require long-term or even permanent treatment, and once you move abroad in retirement and get older, so you have to consider what will happen if you ever need a home help or even to go into a nursing home.

Few expats think about this because ageing is not something that any of us like to think about!  But the practical facts remain – how are you going to afford such care or treatment on your retirement income?  Of course, the solution to all of this comes in the form of health insurance doesn’t it?  Nope – not if you are 65 or older when you move abroad.  Few insurers will cover those over the age of 65 because of the higher risk of having to pay out and having to pay out more for longer.  So what’s the alternative?  To return home to the UK if things get bad and one needs more health care than one can afford?  Also no I’m afraid, because once you become a permanent resident elsewhere you are no longer covered in the UK for free medical treatment under the NHS.

The main solutions for most people are: –

1) If you’re under the age of 65 and you’re actively contemplating a move abroad in retirement, look seriously at signing up with a reputable health insurance company now, one that will continue to insure you once you reach the age of 65. 

2) Begin saving today towards a health care pot to take with you when you move abroad or

3) Maintain your main base of residence in the UK and only live for a few months abroad. 

If you’re concerned about your own situation and you want to find out what alternatives you may have on a personalised and individual basis, consider speaking to a financial adviser.

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