The reason I’ve chosen the US$1500 figure is because that is about the average monthly pension payment for a worker from a developed country who has worked about 30 years or so. Many people, particularly those in the United States and the United Kingdom, face the prospect of retirement with their government pension as their sole means of support. The reason for this is due to the end of the private pension scheme by many companies, and the replacement of that scheme with a retirement plan that puts people’s retirement savings into the stock market. Sadly, poor choices in stock investments and the volatility of the stock market have left people with considerable amounts of their retirement gone forever.
It’s because of this situation that many people see moving overseas as a solution to maintaining their standard of living in the face of declining earnings. Can moving abroad allow a person to maintain their lifestyle and live comfortably on a small income?
The answer is yes and no. Yes, you can maintain a sophisticated and above average lifestyle relative to your surroundings on just a state pension. No, you cannot have the exact same lifestyle you had at home on just a state pension. And no, you cannot live as if you are extraordinarily wealthy overseas on just your state pension.
There are also only certain countries you can move to. If you are American and living on just social security, can you expect to move to France and live a comfortable lifestyle? No. How about Uruguay or Argentina or Nicaragua? Absolutely. Countries in the developing world are the only realistic choice.
Retiring overseas is not easy. In fact, it is quite difficult. The available advice on moving overseas is fraught with poor information, unrealistic scenarios, and outright bad advice. In my upcoming e-book I’ll discuss which countries are good retirement destinations due to a number of factors, including cost of living. Keep on the lookout or sign up on the right to learn when the book is available.