When expats approach retirement age, one of the first things they consider is retiring in a country where they can affordably enjoy a high standard of living. A country that is becoming increasingly popular with the more mature expat age group is Mexico.
Mexico ticks the box for ‘low cost of living’ and it has the added bonuses of having a warm climate and a laid-back lifestyle. Hará mañana (will do tomorrow) is a popular expression and attitude in Mexico, which is ideally suited to lazy days lying next to tranquil waters.
Lake Chapala, Mexico’s largest inland lake is an ideal place to do exactly that. Just 40 minutes away from Guadalajara, Mexico’s second largest city, it is home to over 40 000 expats, in particular, American and Canadian retirees. The lake sits 1,584 metres above seal level and the area benefits from warm temperatures ranging from 30C in the hottest month to 24C in winter!
Low cost of living
Compared to America, the cost of living in Mexico is very affordable and expats retiring here say they don’t have to ‘count their pennies’. Accommodation is generally the most expensive things for retiring expats to deal with, but whether renting or purchasing, good value can be found, especially in the more rural areas. When it comes to getting around, most expats tend to have their own cars. However if you decide to rely on public transport, you’ll be pleasantly surprised to discover that there is an extensive public transport system serviced by reliable and affordable buses.
Health care and insurance
Expats who are approaching retirement age or are retired are naturally concerned about the healthcare system in the country they are moving to. As Mexico is a developing country, there do tend to be healthcare issues in the state hospitals, however private healthcare in Mexico is very good and very affordable and attracts many Americans who prefer to have their procedures done in Mexico, rather than navigate the costs of private healthcare back in the USA. If you are retired and decide not to take out private healthcare insurance, you can request to join the public sector national healthcare programme. As a retired expat, your coverage will not be automatic and you need to be aware that while some hospitals and clinics are excellent, as you move out to the more rural areas, you can expect less consistent levels of care. If you are retiring in Mexico, it is recommended that you have the following vaccinations as a precaution:
- Hepatitis A
- Hepatitis B
Take your retirement money with to Mexico
If you are planning on immigrating permanently to Mexico or another country, you might consider the advantages of closing your retirement annuities and taking the money you have accrued with you.
With so many expats retiring overseas, one of our top services is retirement annuity transfers. With this service, we assist South Africans living overseas turn their retirement annuity policies into cash and we then transfer the funds to their new home. The good news is that this can happen even before you turn 55 and the funds can be used for any purpose – whether you want to purchase a new home or save a nest egg for later use.
If you’re planning on immigrating to Mexico and need advice on your financial migration, contact us today. We’re here to help put you on the path to financial freedom in your new home.