Retiring Abroad: Planning for the Cost of Growing Older

by Adam Fayed on

Retiring overseas can offer a comfortable lifestyle, but staying financially secure as you get older means allowing for changes in your health, household and living arrangements.

Today’s affordable budget should leave room for the support you may need later, including the option to move closer to care or family.

Our Retiring Abroad: Can You Afford It as You Get Older? guide brings these considerations together with an illustrative budget comparison and a later-life planning worksheet.

My contact details are hello@adamfayed.com and WhatsApp +44-7393-450-837 if you have any questions.

The information in this article is for general guidance only, does not constitute financial, legal, or tax advice, and may have changed since the time of writing.

Does retiring abroad become more expensive as you get older?

Retirement abroad can become more expensive when healthcare, suitable housing and paid assistance take up a larger share of your budget.

Spending less on holidays or entertainment may free up money, but those savings will not necessarily cover additional support.

A location that suits an independent retiree may become harder to manage if driving, shopping or maintaining a home becomes difficult. Living nearer hospitals and everyday services could improve convenience while increasing housing costs.

Household changes also matter. After a partner dies, some income may stop or reduce while rent, maintenance and other shared bills continue. Inflation and exchange rate movements can add further pressure.

For retirees drawing on investments, poor returns early in retirement can also leave less money available for later-life needs, particularly when withdrawals continue during market falls.

How can expats prepare financially for later life abroad?

Expats can prepare by comparing their current budget with the cost of additional support, checking which income would continue if circumstances changed, and reserving accessible money for significant one-off expenses.

Start with four areas:

  • Healthcare and assistance: Review insurance terms and separately estimate the cost of help with daily living.
  • Housing and location: Consider whether your home would remain practical and what adapting it or moving could cost.
  • Household income: Check whether each partner could meet essential expenses alone.
  • Future choices: Allow for relocation costs if you decide to live nearer family or suitable care.

Use local quotes and confirmed income figures wherever possible. Review the plan after changes in health, insurance, income or family circumstances so you have time to make adjustments.

To put these checks into practice, download the Retirement Affordability Guide (PDF) and use the worksheet to assess how your budget could change as you get older.

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