You've decided: retirement abroad is the plan. Whether you're relocating permanently or spending just a few years overseas, preparation is key. Many employers offer support as staff transition into retirement鈥攂ut what happens when that next chapter unfolds in another country? When should you start planning? And what timeline will help you make the most of your new life abroad?
Start planning for retirement abroad early
This isn't advice just for future expats鈥攊t's sound guidance for anyone in the workforce. The post-Covid economic fallout has only made early planning more critical. With inflation and financial uncertainty straining household budgets, experts recommend beginning to save as early as possible鈥攊deally in your early thirties or sooner if you entered the job market young.
Why age 30 is a strategic time to start
Experts agree: beginning your retirement planning at 30 gives you a strong head start鈥攅specially if your goal is to retire abroad. You'll have the time to research foreign pension systems, retirement age requirements, and legal considerations. Instead of scrambling to save large sums later in life, you can build your savings gradually with smaller, more manageable contributions. Early planning also opens the door to better financial products tailored to your age and income.
Still, few people in their thirties are focused on retirement. Many are finishing their studies, juggling internships, or searching for stable work. Even those with full-time jobs may not have the financial space to begin saving鈥攈owever modestly. And retirement planning often takes a back seat to career growth and short-term goals for those living abroad as digital nomads.
Starting in your 40s: A mixed opportunity
Statistically, your 40s are when income tends to peak. Salaries rise with promotions and seniority. Daily expenses may decrease鈥攎ortgages are being paid down, and children are in school. But statistics don't always reflect reality. For many future expats, their 40s are the 鈥渘ew 30s.鈥� Some manage to begin saving for retirement during this time, but others still aren't financially able to do so.
Preparing for retirement after 50
In reality, many people only begin planning for retirement when it's just around the corner. The is 60 or older鈥�62 in the U.S., 64 in Singapore (starting in 2026), 65 in Cyprus and Spain, and 67 in Italy and Denmark. Still, much depends on your situation. Have you validated enough quarters or contributions to qualify for a full pension? What are the residency requirements for retirees in your destination country? And if you plan to continue working abroad, will your residency status allow it?
Planning after 50 is entirely feasible. What's most important is anticipating shifts in income and preparing for rising expenses鈥攅specially regarding health care.
Redefining what "retiring abroad" means
Retirement planning is often framed solely in terms of money鈥攁nd understandably so. Retiring abroad can be expensive. You'll stop working, and your pension needs to be enough to support you in a foreign country.
But there's another way to approach it: by redefining what 鈥渞etirement鈥� means. For some, the term still carries negative connotations鈥攍oss of income, reduced activity, and even isolation. The economic crisis has only deepened this perception. Several studies show that people fear retirement more than death itself. That fear is often rooted in daily financial struggles鈥攊t's hard to feel optimistic about retirement when just making ends meet is a challenge.
Rethinking retirement abroad with a positive outlook
This is where the concept of 鈥減ositive retirement鈥� comes in. Rather than viewing retirement as life's final stage, its advocates see it as a new beginning. Just as a university graduate steps into working life with excitement, the 鈥渞etired graduate鈥� can approach this next chapter with the same sense of purpose and optimism.
This mindset shift opens up a more flexible planning timeline. You can start thinking about retirement at any point鈥攏ot just in financial terms, but in light of your dreams and aspirations. What brings you joy? Where have you always wanted to travel? What's your dream country? Where can you see yourself truly living?
This approach doesn't overlook the practical side. You'll still need to fund your lifestyle abroad. But when planning is guided by personal goals, you're often more willing to adapt. It becomes easier to visualize your future overseas and to put meaningful, effective plans in place to get there.
Planning your retirement abroad: A matter of pragmatism
The best approach combines both practical concerns鈥攊ncome, visa processes, and more鈥攁nd aspirational thinking. For example, you might choose a country with a lower cost of living than your own. Many retired expats do just that, stretching a limited income further in a more affordable destination.
But beware of changing legislation. Thailand's 2024 tax reform, which makes pensions and foreign income taxable, triggered panic among many retirees. Portugal's 10% flat tax, introduced in 2021, ended the full tax exemption previously granted to retirees for their first 10 years of residence. Yet both countries remain top destinations for retired expats. Another popular choice鈥攅specially for Americans鈥攊s also considering a shift: the French government is exploring the removal of the 10% tax deduction on pension income. If included in the 2026 budget, this change could raise taxes for 50% of current retirees and make previously untaxed households liable.
Stay informed about economic and policy changes in your chosen country. Don't rely solely on the 鈥渃ost of living鈥� argument. Consider the full range of factors that come with life abroad: housing, transportation, healthcare, taxation, and return trips to your home country. Be prepared to make compromises from the outset. And seek expert advice鈥攐n taxes, residency, and expatriation鈥攖o help ensure your retirement abroad is a success.
