Retiring Abroad
Retiring in Latin America could be a dream come true…but be sure to do your research before buying property and booking a one-way plane ticket.
By Carolina González
August/September 2007
Latino immigrants often dream of going back home to retire. In fact, nearly one out of 10 Hispanics ages 40–74 say they plan to spend their retirement years abroad, mostly to be with family, according to an exclusive AARP Segunda Juventud survey.
But retiring in Latin America—whether in your native country, someplace that reminds you of home, or somewhere new and different—requires more than a one-way plane ticket. It also takes figuring out how you’ll handle basic needs like housing, medical care, insurance, and even receiving your Social Security check. And how much will all this cost you?
Some people find the right place to live and the services they need fairly easily. Jorge Navarro’s family in Chile helped him plan his return to his native Viña del Mar five years ago. Others, like Peruvian natives Jaime, 56, and Amaveli Ugaz, 49, needed outside assistance. That’s because there’s a lot to consider—and a lot to do.
As U.S. Hispanics move abroad, companies have sprung up to help research, locate, and negotiate what retirees need. The services vary widely. MexRetire.com and Livtopia, owned by the same parent company, will help you choose which country to call home and provide “concierge services,” such as contracting household help. International Living offers a more do-it-yourself approach, conducting workshops in Latin America to introduce prospective expatriates to local experts on legal matters, medical care, and accounting.
The Ugazes took advantage of MexRetire’s one-stop shopping. “We’d been thinking about Mexico, but having MexRetire help research properties and things like lawyers meant that I didn’t have to spend months doing it myself,” says Jaime Ugaz. The couple, from Madison, Wisconsin, bought a home in Mérida, Mexico. Though Peruvian, the Ugazes found Mérida’s colonial charms fit their cultural interests and the pace they’d grown accustomed to in Madison.
Mexico is the most popular Latin American country for retirees because it’s close to the United States and many U.S. immigrants are of Mexican descent. And Mexico, like the Dominican Republic, allows people to retain citizenship even if they’ve become U.S. citizens, making it easier for people to return home.
MexRetire and Livtopia founder Samer Salameh, who consults with AARP on global retirement, says about 10 percent of his companies’ clientele is of Latin American origin. Hispanics looking to move to Latin America have advantages beyond language, he says: “They know what to expect in terms of the culture and the lifestyle.”
Beyond the lure of family and familiarity, retirees prefer the lower costs and financial benefits in Latin America. In Costa Rica, for example, a favorite with retirees because of its political and economic stability, legal residency is available to foreign pensionados, allowing them access to public health care and exempting them from taxes on income earned outside Costa Rica. Ecuador, Honduras, Nicaragua, and Panama don’t tax U.S.-based pension income. Another benefit to life in Latin America is the affordability of hiring help for medical care or household tasks.
Looking at spreadsheets or working with a concierge service may not be enough to figure out whether retirement abroad will work for you. So Suzan Haskins, the Mérida-based Latin America editorial director for International Living, recommends renting in your intended new home for at least six months before making a commitment. “[Relocating] is a decision you make for more than one reason,” says Haskins. “It might be emotional or financial, but those things need to work together.”
Raúl Oña, 70, found that out. After living more than 40 years in the United States, he retired to his native Ecuador and started a small business. He ended up stumped by Ecuador’s bureaucracy when it came to doing simple things like getting a driver’s license or more complex projects like setting up a business. “I don’t regret returning to my country, but I didn’t realize how accustomed I’d become to the level of efficiency in the United States,” Oña says.
Jorge Navarro, 62, who returned to Chile, doesn’t regret his decision either. He and his wife moved back shortly before she died of cancer. Relatives helped with the move—and still help. “I miss her every day,” he says, “but I would have felt much more alone if we’d remained in the United States. Here, I’m surrounded by family.”
Put your retirement on remote control.
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