As usual, Brian, you'll have a lot of readers thinking about their options after reading this article.
I moved to Ecuador in 2008, mostly to escape the cold in Canada. I now couldn't afford to live their on double my current salary. Yes, at 70, I'm still working full-time for a company in Canada.
Health insurance is a requirement for expats here, and fortunately, it's affordable. For my wife (68) and me, total cost for $500,000 coverage each, if we pay for the year in a lump sum, is about $2,000 USD.
We rent an entire house for $500 USD per month, $28/month for internet, $35 or so for electricity, and less than $4 a month for potable water and sewage (with fire department fees included).
Our grocery bill varies per month, and has gone up a lot in the last two years. It rarely goes above $900 USD per month.
Ecuador uses the US dollar for all transactions, which is why everything above is quoted in USD. We lose the advantage of soft local currency. That's compensated by not having to figure out the cost of something in dollars when the local price is baht or pesos, etc.
I definitely recommend moving overseas, if you can make it work. And, if you're from the US, don't forget to take advantage of the Foreign Earned Income Exclusion, which lets you earn about $115,000 per year in your new country (or globally) without paying any US income tax.
I’m not from the US but totally agree with the ‘living in other more affordable countries’ option. As one who doesn’t do well in the cold, a warm climate is a priority. I have been living in Zambia for the last 3+ years. The climate is perfect for me, as is the rural environment nestled in the hills. However, dealing with immigration for a longer than normal tourist stay is extremely stressful and expensive so if you are planning a permanent move, I would have to say that the other countries mentioned in this post are better options. There are also a couple of others, one of which I will be moving to when my current visa expires. 😊
I'm based in the UK, where the maximum state pension (social security equivalent) is USD16k. The average 60-year-old has a lot less than USD150k in pension savings, though the majority have their home paid for. In short, similar financial shortfalls and the same formal retirement age (67) now pertains.
The other financial issue is what happens if one needs to move into a retirement home (ie you don't die quickly). Whilst the UK has universal health care, it does not cover this, so if you are a couple and one of you has to go into a home for your last year, you typically have to sell that home you managed to pay off.
What this means is that even those with enough money saved to live off find the Bill Perkins "Die with Zero" formula impacted by this challenging variable. As an example, my Dad was in great health but died suddenly last year. This meant he did die with savings and a house that then formed his estate to pass on to his children. If, however, he had gone into a home for a few years most of that would have been used up.
That's the financial side.
Now, one other thought around living overseas in lower-cost places is missing one's family. As we hit our 60s, many of us will either have grandchildren or be looking forward to having them. The last thing many would want to do is move away when your children (and the grandchildren) are at an age and stage where flying overseas to see the grandparents is most difficult.
Yup, at 60, all of these things are on my radar. I have, like you suggest, created a career that is geographically independent, but, through choice, my life isn't ;)
Such an interesting take. I think ‘flexibility’ is the real buzzword here; the world is changing fast, and those that fail to adapt accordingly will struggle. I agree that the traditional retirement model is no longer applicable; what I might add to your point is that the ability to work remotely allows for more freedom in the work itself.
I would encourage professionals, when they reach midlife, to consider moving to a portfolio executive model of work, where they are able to build up a range of income streams and board roles. That diversification frees you from being tied to any single organisation or place; it also enables you to craft one around the life you want to live. At that point, location independence becomes a strategic level, rather than an escape plan, allowing income to be earned in high value markets while costs are optimised elsewhere.
In your experience, where do most people misjudge the realities of location independence, particularly as a core financial and career strategy?
As usual, Brian, you'll have a lot of readers thinking about their options after reading this article.
I moved to Ecuador in 2008, mostly to escape the cold in Canada. I now couldn't afford to live their on double my current salary. Yes, at 70, I'm still working full-time for a company in Canada.
Health insurance is a requirement for expats here, and fortunately, it's affordable. For my wife (68) and me, total cost for $500,000 coverage each, if we pay for the year in a lump sum, is about $2,000 USD.
We rent an entire house for $500 USD per month, $28/month for internet, $35 or so for electricity, and less than $4 a month for potable water and sewage (with fire department fees included).
Our grocery bill varies per month, and has gone up a lot in the last two years. It rarely goes above $900 USD per month.
Ecuador uses the US dollar for all transactions, which is why everything above is quoted in USD. We lose the advantage of soft local currency. That's compensated by not having to figure out the cost of something in dollars when the local price is baht or pesos, etc.
I definitely recommend moving overseas, if you can make it work. And, if you're from the US, don't forget to take advantage of the Foreign Earned Income Exclusion, which lets you earn about $115,000 per year in your new country (or globally) without paying any US income tax.
I’m not from the US but totally agree with the ‘living in other more affordable countries’ option. As one who doesn’t do well in the cold, a warm climate is a priority. I have been living in Zambia for the last 3+ years. The climate is perfect for me, as is the rural environment nestled in the hills. However, dealing with immigration for a longer than normal tourist stay is extremely stressful and expensive so if you are planning a permanent move, I would have to say that the other countries mentioned in this post are better options. There are also a couple of others, one of which I will be moving to when my current visa expires. 😊
I'm based in the UK, where the maximum state pension (social security equivalent) is USD16k. The average 60-year-old has a lot less than USD150k in pension savings, though the majority have their home paid for. In short, similar financial shortfalls and the same formal retirement age (67) now pertains.
The other financial issue is what happens if one needs to move into a retirement home (ie you don't die quickly). Whilst the UK has universal health care, it does not cover this, so if you are a couple and one of you has to go into a home for your last year, you typically have to sell that home you managed to pay off.
What this means is that even those with enough money saved to live off find the Bill Perkins "Die with Zero" formula impacted by this challenging variable. As an example, my Dad was in great health but died suddenly last year. This meant he did die with savings and a house that then formed his estate to pass on to his children. If, however, he had gone into a home for a few years most of that would have been used up.
That's the financial side.
Now, one other thought around living overseas in lower-cost places is missing one's family. As we hit our 60s, many of us will either have grandchildren or be looking forward to having them. The last thing many would want to do is move away when your children (and the grandchildren) are at an age and stage where flying overseas to see the grandparents is most difficult.
Yup, at 60, all of these things are on my radar. I have, like you suggest, created a career that is geographically independent, but, through choice, my life isn't ;)
I’ve been exploring foreign residency options since 2022. I haven’t been to Asia yet and probably won’t go but Latin America looks promising.
Such an interesting take. I think ‘flexibility’ is the real buzzword here; the world is changing fast, and those that fail to adapt accordingly will struggle. I agree that the traditional retirement model is no longer applicable; what I might add to your point is that the ability to work remotely allows for more freedom in the work itself.
I would encourage professionals, when they reach midlife, to consider moving to a portfolio executive model of work, where they are able to build up a range of income streams and board roles. That diversification frees you from being tied to any single organisation or place; it also enables you to craft one around the life you want to live. At that point, location independence becomes a strategic level, rather than an escape plan, allowing income to be earned in high value markets while costs are optimised elsewhere.
In your experience, where do most people misjudge the realities of location independence, particularly as a core financial and career strategy?