Retiring Abroad: Here’s the No. 1 Cost To Avoid When You Move Overseas

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If you are considering retiring abroad, you aren’t alone. Over half a million people receive their Social Security benefits outside of the United States, as reported by Travel + Leisure. These expatriates are not only relocating to countries neighboring the U.S. but also overseas. Some of the most popular destinations for retirees are in countries throughout Europe.
Retiring abroad definitely has its perks. One of the most common benefits cited by expats is affordable healthcare. Seniors can often get good healthcare in other countries for a fraction of the cost that they would pay in the U.S. Other incentives include lower costs of living and cheaper housing.
However, if you are thinking of retiring overseas, you will want to be sure to speak to a financial planner who can help advise you on any tax implications the move may have and costs that you should be prepared to incur. And one cost that you may be able to avoid is shipping. For many experts, the expense of shipping your goods abroad is simply not worth it.
Also see four tips to successfully retire abroad.
Why Shipping Costs Should Be Avoided
According to CNBC Make It, paying to ship your belongings when you move overseas is a cost that can be avoided. As financial advisor Alex Ingrim told CNBC, it is generally a better idea for people moving abroad to sell their items rather than pay the extraordinary expense of shipping them.
While people may want their creature comforts in their new surroundings, there could be a number of hiccups that make the move more hassle than it’s worth. For instance, European homes are often quite different from those in America. They are usually smaller and set up in a way that may not fit the kind of furnishings that Americans have grown accustomed to.
Another consideration is that electronics may not work in another country. Without the proper adapters, many appliances are nearly worthless. In a lot of instances, it may actually be more cost-effective to simply buy new items once you reach your destination.
How Much Does It Cost To Ship Goods Abroad?
The amount of money it costs to ship goods overseas can depend on a number of factors, such as the size of the furniture and the destination country. International Van Lines noted that it could cost you an average of $2,200 to $9,000 to ship furniture abroad.
International shipping is not only costly but also complicated. Retirees should be prepared to have their goods go through customs and may need to arrange for pickup at a port. To get a firm idea of potential expenses, it is recommended that you speak with a representative from an international shipping company.
Best Practices for Retiring Abroad
Stewart Koesten, CFP, chairman of Aspyre Wealth Partners and a wealth manager specializing in global financial planning, agreed that individuals should consider their options before paying to ship goods overseas.
“I believe it is best to liquidate your household items before making the move abroad,” he explained. “Then buy major furniture and appliances once you arrive at your new permanent residence to ensure they fit, both in size and electronic configuration.”
Though before you go out and buy new items, be sure you know whether your new residence comes with any furniture or appliances. “Depending upon where you move, certain appliances and even some furniture may be included in your lease. Be careful though, anything that is not listed in your lease or purchase agreement will not be there when you move in,” Koesten said.
Getting Your Pet Overseas
“An additional shipping challenge for those moving to another country is the transportation of pets,” Koesten said. “Depending upon the size of the animal, the airline and the destination country, your pet might be traveling in the cargo section.”
Navigating this process can be complicated — and costly. “It is essential to understand the specific rules of your new country and airline,” Koesten said. “Some enforce lengthy quarantine periods, deny certain breeds or require significant documentation and fees. At a minimum, I recommend having the pet microchipped, getting a health certificate from a veterinarian and making sure your pet will be acceptable upon arrival. Then decide if the costs, time and added stress on you and your pet is worthwhile.”