5 Reasons Not to Retire Abroad

Whilst Shelter Offshore as a publication is very much in favour moving to live, work, invest or retire abroad we’re also very well aware that not everyone is in the right place emotionally, financially or even practically speaking to make the move overseas.  What’s more, for some people starting a new life abroad could be absolutely the worst thing to do at this point in their lives!

Therefore, if you’re wondering about whether an overseas retirement is for you or not and you have a long list of ‘pros’ on your pros and cons list, here is an article to balance out all the positives in favour of living overseas in retirement – 5 reasons not to retire abroad!  When you’re in the position of contemplating a significantly life changing event you need to go through every single aspect of the opportunity to determine whether it is right for you or not.

If you find you relate to one or more of the following 5 reasons why moving abroad in retirement might not be the best idea, you may want to rethink whether a move abroad at this stage in your life is really the right thing to do!  Conversely, it is highly possible that after reading this article you’re even more fired up to get out of the UK and start living the dream overseas – in which case we’re just glad we got you to consider any potential negatives before you go so that you are wholly assured you’re making the right decision.

1)  You Will Lose Your Network

Personally I hate the term ‘networking’ only slightly less than I despise the entire concept of having a ‘network’ of family, friends and associates around me – and yet that is what I have and that is what I am hugely fortunate to have.  I just don’t think of those around me as forming a ‘network.’  Anyway, moving away from my irrational prejudices, you need to think about the fact that you very likely have family and friends and a range of people from tradespersons to professionals who you know you can call on in a given event.  For example, if you fall ill you call your local doctor or dial 999, if you lock yourself out you can call your nimble grandson to climb a ladder to an upper floor window or look in your neighbour’s Yellow Pages for a 24 hour locksmith.  If you’re lonely you can pick up the phone and arrange a night out with friends or you can rely on the fact your children will be popping by to see you later in the day.  This level of familiarity is not only comforting, it is essential – but when you move abroad you lose this.

Yes, you will gradually build up familiarity in your new country abroad, you will make new friends and your family will visit you - but until you’re in the position where you have a new ‘network’ it can be hard, lonely, alienating and make you very homesick.  Can you cope?  Do you want to cope?

2)  Your Health May be Negatively Impacted

As we all age so the inevitability of ill health becomes more apparent an more likely.  In the UK we have access to the likes of assistance from the NHS and social services – but if we move abroad in retirement not only might we lose free access to any assistance at all, we may not even be able to get the likes of home help even if we have the money to pay for it.  This reality is one that few people face – and it’s understandable as I for one almost refuse to accept that I am even aging let alone approaching a time when I may need more care and support!  (Grey hair?  What grey hair, pass me the dye!)  But if you’re planning to retire abroad you absolutely have to think about these realities – to not do so is ridiculously irresponsible!

3)  Money Matters a Lot More in Retirement

When you retire you usually find that you do not have a regular wage coming in and that you’re living off a fixed level of pension/savings and investment income.  Issues such as poor interest rates and inflation can erode the value of your wealth if you remain retired in the UK – but move abroad and you have to face further problems such as currency fluctuation issues and what happens if the economy you’re living in becomes more or less affluent than the British economy?  How will this affect the real value of your retirement income?

Moving abroad can be very expensive – and it can be impossibly expensive if you’re stuck on a fixed income and you fail to protect your future financial standing from the likes of currency and economy fluctuations for example.

4)  Retirement Can Be Boring!

If you’ve enjoyed a very active working life and a social life that goes hand in hand, when you come to retire you may suddenly find you have way too much time on your hands.  Personally boredom is something that terrifies me – and I know I’m not alone.  Those who retire in the UK and discover that they have way too much time on their hands can go back into the workplace, find volunteer programmes that they can help with, they can assist family and friends and so on and so forth.  Those who retire abroad with initially no network of family and friends and who face boredom will be potentially struck by how awful their situation is.  Employment will be an unlikely prospect, for those with poor language skills getting involved with the community or with volunteer programmes will be difficult – and because most other expats seem to just want to drink (!!!) it won’t be long before your liver may be pickled and your brain addled by boredom!

5)  Properties Are Not Liquid Assets

Even when Britain’s property market was booming it took time to sell a property – if you’re desperate to get out of the UK you may find that now the market has seemingly crashed you will be waiting a long while to see the back of the family home.  This could make it hard for you to move abroad.  What’s more, this picture of an unhealthy property market is mirrored in much of the rest of the world and compounded by the fact that in many countries it is even harder to buy or sell property.  This may make it even harder for you if one day you decide you’ve had enough and you want to return to the UK.  Do you want to be stuck in the position where you’re offloading property at a reduced price just to get to where you want or need to be?  Think about those stuck in negative equity in Spain who want to leave but can never afford to get back to the UK.

Okay, so it doesn’t have to be like this for you – but you have to think ahead, plan ahead and be very realistic about what moving to live abroad in retirement will be like.  If you do decide that living the dream overseas in retirement is right for you – good for you.  But face up to the inevitabilities and negative realities as well as falling in love with the fine weather and the fantastic lifestyle.  Only by having an open mind and taking a balanced approach will you have the best chance of a good life overseas.