Latin American Countries Are Fast Emerging As Retirement Destinations

Jul 10, 2018 | 1 year ago | Read Time: 4 minutes | By iKnowledge Team

The Latin American countries – those from Central and South America have repeatedly featured in the top 10 preferred international retirement destinations.  According to Global Finance in 2018 as well 8 of the top ten preferred retirement destinations were from Latin America. Other than Malaysia, Portugal and Spain, all others in the top ten were Latin American. These included Costa Rica, which made it to the number one slot this year for the first time. Other Latin American nations on the list of retirement destinations in 2018 were Mexico, Panama and Ecuador – rounding up the top four spots making them all exclusively Latino! Then came Colombia at number six, Nicaragua at number eight and Peru debuting at number 10 rounding off the top ten retirement destinations for 2018.

Source: Wikipedia

Now when it’s obvious there are options beyond your home country, your retirement plan also needs to be bolstered to ensure a happy retirement. Life insurance plans that are topped up to tackle inflation and changing needs have to be a key part of retirement planning. This flexibility is now at your fingertips because insurance providers such as Aegon Life offer tools and products such as its retirement plan calculator to accurately calculate and plan savings for your retirement. They also help provide financial security to your dependents following your retirement – whether said retirement is in your home country or in a more exotic locale abroad.

While the emergence of Latin American countries as retirement hubs is not new, the sheer takeover of the top spot is new. This preference for retirement in Latin America is driven by the following factors. The low cost of living, cheaper health care and access to health insurance as well as the sheer beauty and convenience of these countries. The friendly locals and the vibrant ex-pat community also make Latin American a very attractive retirement destination. Fundamentally good life insurance cover is essential to a sound retirement plan.

Retirement plans in the new millennium need to address the challenges of the new millennium, and retirement abroad is emerging as a popular trend. Many people are opting for retirement outside their home country as the cost of living shoots up in their hometowns and their retirement funds are unable to sustain a good quality of life there.

Many people who earned their living and saved for retirement in the first world – the developed nations such as USA, Canada, UK and the countries of Northern Europe are opting for retirement in the developing world where there is more “Bang for the Buck!” Among the developing nations, it is the more stable countries in South and Central America that are emerging as a popular choice for retirement. Cost of daily living, rent and entertainment are all much cheaper in Latin America, especially compared to United States, Canada and United Kingdom. While a retirement plan may seem adequate at the time of inflation, even tax implications may make it prudent to choose retirement in Latin America.

While there are those who don’t feel comfortable moving abroad post- retirement, the advantages offered in these international retirement destinations, especially Latin America, are an irresistible hook. Cheaper labor and access to more comprehensive assisted living facilities which is a basic need in many cases of senior lifestyles ensure that Latin American countries win out as retirement hubs. The abundance of activities that cater to a fully engaged post-retirement life ensures that people pick places like Mexico, Panama, Belize and even Peru as their new retirement homes!

For people who retire from the United States and Canada, the many international airports of Latin America and the proximity to their home countries and families there ensure that Mexico, Costa Rica and Panama especially are preferred retirement destinations.

The following chart gives a summary of why people choose cheaper international retirement destinations.

Source: Retired-brains.com, “Retiring Abroad”

The exchange rate advantage is also the main reason people from United States and Canada choose Latin American countries for retirement. But considering the constraints of senior living factors such as a conducive climate, infrastructure for senior living and assisted living and other such special benefits are also important factors. In Latin America, rent is cheap, climate is mild (especially in Central America), labor is cheap enough to make care cheap and with a solid retirement portfolio there is enough to make even the luxurious entertainments and escapes a regular feature of post-retirement life. But it is important to beware of the scams and look beyond the obvious when choosing your post-retirement destination. Of course a secure retirement portfolio and insurance are priorities before choosing your retirement destination. Although living in these retirement communities will provide you with friends, facilities and opportunities that will not always be available in your home country.

Advt. No.: IA/Jul 2018/4184


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