Tuesday, May 25, 2010

Retiree savings may last much longer in the developing world

The New York Times has a special I.N.H. “Net Worth” report by Shelley Emling,”Americans who seek out retirement homes overseas”, link here.


The cost of living is lower in many warm-climate “third world” countries, some of them with less than the best reputations for one reason or another. Included in the list of destinations would be Colombia, Panama, Costa Rica, Malaysia, and some eastern Europe countries.

Rural areas in these countries are often quite inexpensive, with people living on less than $2000 a month and finding healthcare much cheaper than in the US. But retirees would have to deal with cultural and religious values and laws of some other countries.

The article even suggested that retirees part with everything they own in the US and start over with a sum that is their net worth.

A site that recommends countries for overseas retirement is here.  There are some advanced countries here, expecially Spain (which is in the midst of a debt crisis now).  Greece is on the list. But so is Australia, which is almost like another USA (look at its film industry).

Some economists, especially on the political right, have suggested that people should retire to developing world areas where (partly because of higher birthrates in these countries) labor for caregiving and health care is relatively available and less expensive and will put people in other countries to work and help their economies. One could read some intentions into these suggestions.

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