What About Taxes And Healthcare In Italy
One aspect of Italian life that will help you keep costs low? You dont have to pay for health insurance. Like many Western nations, Italy has a national health service, and the World Health Organization ranks it in the top 10 for quality care. If you’re coming from a country without nationalized healthcare, like the US, you wont need to budget for hospital stays and medical treatments. Prescription drugs must, naturally, be prescribed by a doctor and are covered by the taxpayer, though you pay out of pocket for over-the-counter drugs. US and Canadian residents can apply to join the health service once they’re legal residents.
Some public hospitals do have issues with overcrowding and long wait times, so there are private medical plans available. However, if you choose to live in rural areas, especially those in the south, public hospitals and doctors will probably be the only kind available.
Italy is happy to welcome retiring expats and their spending money. But to legally live in Italy as a retiree, youll need to be able to show that you still have an income.
Retirement income can come from many sources including:
- Social security checks
- Retirement accounts such as 401ks or Roth IRAs
- Real estate
After You Submit Your Application
We’ll send you an acknowledgment letter after we receive your retirement application. We may also contact you if we have questions or need additional information.
Approximately two weeks before your first retirement warrant, weâll mail you a First Payment Acknowledgment Letter that provides important information about your service retirement, including the date and amount of your first retirement check.
You may sign up to receive your retirement checks through direct deposit at the same time you submit your retirement application. To set up direct deposit online, log in to myCalPERS. Go to the Retirement tab and select Payment Options. Alternatively, you can complete and mail the Direct Deposit Authorization to:
CalPERS Benefit Services Division
Chilean Rentista Visa Program
Chile is one of the most underrated and highly livable retirement destinations in the world. In fact, its a country that most of the Sovereign Man team have lived in, and weve even started a large commercial scale agriculture business there.
The cost of living in Chile is quite high, relative to other Latin American countries, however retirees from North America and Europe will enjoy significantly more purchasing power than at home.
Chile has had its share of political issues in the past few years, and its COVID-19 lockdowns have been exceptionally strict. But generally speaking, it offers one of the best living standards in Latin America, coupled with modern infrastructure and good public healthcare.
In addition, its rentista visa program offers a relatively straightforward path to Chilean residency.
The Chilean Rentista Visa
Most of our readers take this route to obtain Chilean residency. If you earn a periodic, stable income , the rentista program should be an excellent option for you.
It is important to note that your income has to be passively earned a pension or rental income from a property you own will work. While there is still no set amount of money required in order to be approved, our legal contact in Santiago recommends showing $1,500+ in income, per month, for the primary applicant, and an additional $500+ per month for each additional dependent.
The bottom line?
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Law Enforcement And Public Safety Officers
OPERS provides special retirement coverage for certain law enforcement and public safety officers who are required to participate in the Traditional Pension Plan. If you are a Law Enforcement or Public Safety Officer, please refer to the
|Addresses, Social Security numbers and dates of birth for beneficiaries and dependents|
|Proof of Medicare A and B, if applicable|
|Direct deposit information, including bank account and routing numbers|
|Any court orders that may pertain to your retirement|
|Early Retirement Incentive Plan Agreement|
|Bureau of Workers Compensation claim number|
Choosing A Place To Live: Cost Climate And Culture
Once youve gotten through the monotony and detail of navigating systems of immigration, healthcare, and taxation, its finally time for the fun part: choosing the place to make your Canadian home!
Canada is a huge country, even larger than the United States, so take your time in choosing where you want to live, because the costs, climate, and culture can vary dramatically from location to location. We suggest using our Destination Guides to compare different possibilities across the country.
When determining where you want to live, its useful to consider cost, climate, and culture.
Cost of living in Canada: The cost of living, especially around affordability of housing, is predictably high in Canadas major cities: Toronto, Vancouver, and Montreal. So, if youre looking for a big city life, bear in mind that this might cost you. However, if youre looking for a quiet retirement in a smaller town or cottage country, you can find something more affordable .
Climate: Depending on where you live in the United States, you might be used to some snow in winter, but are you used to Canadian winter? Winters in Canada can be frigid and harsh, although the climate depends on your geographic region.
If you want the best of both worlds, you can join the ranks of the Canadian snowbirds, spending your summers in Canada and heading back south of the border for the warmer U.S. winters.
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Indonesia Retirement Visa To Permanent Residence
Once you have extended your Retirement Visa KITAS for five consecutive years, you become eligible for permanent residency. The KITAP is a permanent residence permit which is valid for five years and can be renewed indefinitely every five years.
To apply for a Retirement KITAP, you again need the sponsorship of a tourist/travel agency, who will submit the application to the Immigration Department. To apply for the Indonesia Retirement Visa KITAP, you need the following documents:
Letter of Guarantee/Sponsorship from the tourist travel office.
- Your most recent KITAS
- Your original valid passport as well as a copy
- The license and tax number of the travel office.
- Your Curriculum Vitae .
- Proof of sufficient funds
- Proof of accommodation in Indonesia
- Proof of having employed an Indonesian maid/domestic helper during your previous stay
Pbgc Insurance: A Legal Difference
ERISA does not provide insurance from the Pension Benefit Guaranty Corporation for defined contribution plans, but cash balance plans do get such insurance because they, like all ERISA-defined benefit plans, are covered by the PBGC.
Plans may also be either employer-provided or individual plans. Most types of retirement plans are employer-provided, though individual retirement accounts are very common.
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Over 72 Be Sure To Take Your Required Minimum Distributions
A report from Fidelity Investments says 61% of their account holders who are older than 72 have not yet taken their Required Minimum Distributions .
Yikes! Now is the time!
Dont overlook this important yearly retirement checklist task! In most years, if you are older than 72, you are required to withdraw from your retirement accounts before the end of the year or else you will owe hefty penalties.
Are you worried about the taxes you will pay, here are 6 strategies to help you minimize the costs of these RMD withdrawals especially if you dont need to use the money now.
Do You Have An Emergency Fund
According to Bankrate, only 39% of people can cover a $1,000 setback using their savings. Where does the money come from when the unexpected happens? More than likely, it comes from the retirement fund. And thats a risky game to play.
Most financial experts recommend saving no less than 3 to 6 months worth of living expenses available in an easy to access checking account, with 6 to 9 months being a safer amount to work toward. The rest of your money should be working for you and earning interest.
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Retirement Plans In The United States
A retirement plan is a financial arrangement designed to replace employment income upon retirement. These plans may be set up by employers, insurance companies, trade unions, the government, or other institutions. Congress has expressed a desire to encourage responsible retirement planning by granting favorable tax treatment to a wide variety of plans. Federal tax aspects of retirement plans in the United States are based on provisions of the Internal Revenue Code and the plans are regulated by the Department of Labor under the provisions of the Employee Retirement Income Security Act .
Average Retirement Age In The Us
The average retirement age for Americans has increased by about three years over the last three decades, according to the Center for Retirement Research at Boston College. Even so, on average, Americans are retiring before they reach full retirement age. Men retire at an average age of 64.6 years. The average retirement age for women is 62.3 years.
The increase in the average retirement age has been fueled in large part by people who are college graduates, the research from Boston College shows. For example, men with college degrees retire three years later than men who are high school graduates. One major reason workers who are high school graduates tend to retire earlier is that their health and longevity hasnt improved over the decades like those with college degrees. Their jobs tend to be more physically demanding, and they are less likely to be able to take as much time off as workers with college degrees do.
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Boost Your Monthly Savings Rate
Another important thing to do if you are still working is to try to boost your savings rate. You may have received a bump in income this year.
You should definitely consider using that bump to increase how much you save each month.
And, according to a survey by Aon Hewitt, 91% of all employees have compensation packages that may include a year-end bonus. Get that money into retirement savings.
Retire In The Us With Eb
If you do not have a close relative who is a United States Citizen and who can sponsor you, your best option for retiring to the U.S. might be an EB-5 investors visa. Geared toward foreigners who have accumulated significant wealth and who would like to live and invest in the United States, the EB-5 visa grants eventual permanent residency to those who are willing to invest either $500,000 or $1 million in an American business or project.
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Is Retiring At The Average Age A Smart Move
U.S. Census Bureau data shows that the retirement age in the United States averages 65 for men and 63 for women. Retiring at the average age can be a smart move if key factors have lined up in your favor.
The factors that affect your age of retirement are your personal circumstances such as health and residence, the recognized retirement age to receive Medicare and Social Security, and how well you have planned financially.
Tips To Help You Afford Retirement
- If you have the money to move abroad, a financial advisor can also help you understand the finer points of relocating, including the tax implications. Finding a qualified financial advisor doesnt have to be hard. SmartAssets free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If youre ready to find an advisor who can help you achieve your financial goals, get started now.
- As mentioned above, you can retire comfortably in Portugal, in a small city, on an income of $1,400 per month or less. For some people, the value of your Social Security benefit is enough to cover your costs of living. You can estimate your benefit amount with this Social Security calculator.
- Whether you want to retire comfortably abroad or in the U.S., both an IRA or a 401 plan will offer you tax benefits, and help you grow your retirement savings with compound interest.
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Am I Eligible To Retire
Perhaps one of the most important things to be aware of when considering retirement is whether or not you meet the retirement eligibility requirements for your plan and retirement group.
You may be financially and mentally prepared to retire, but you need to meet the age and service eligibility requirements set by OPERS to take that next step.
Social Security In The Usa
The official name of the state retirement plan in the USA is Old-Age, Survivors, and Disability Insurance . However, it is generally known as Social Security.
The authority responsible for Social Security in the USA is the Social Security Administration , headquartered in Woodlawn, Baltimore County, Maryland. The SSA is also responsible for issuing a Social Security Number .
The American pension system is divided into:
- Old-Age Insurance : old-age pension
- Old-Age Survivors Insurance : widow’s and orphan’s pension
- Old-Age Survivors Disability Insurance : disability pension
- Supplemental Security Income : a welfare program that provides assistance to disabled, blind, and impoverished seniors
- Temporary Assistance for Needy Families : a program of services for low-income families with minor children
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Cost Of Living And Housing
Portugal is an increasingly popular retirement destination in large part because of its low cost of living. On average, the cost of living excluding rent is almost 29% lower than in the U.S., according to numbeo.com. Even if your only income is the average Social Security benefit, $1,400, you could live comfortably in a small city. But this would require you to live a bit frugally if you want to reside in a major city, like Lisbon. You could also get more bang for your buck if you live outside of a city. Having a monthly budget of about $2,000 would allow you to live a more luxurious lifestyle.
For housing in particular, you can expect to pay $1,000 or less for a one-bedroom apartment in the center of a big city, like Lisbon. Living farther from the city center will save you as much as a few hundred dollars per month. Living more like a local, in the countryside, would also save you money.
If you do plan to spend years in Portugal, it might even be worth buying your own home. You can find apartments both in and out of the city at a price where your mortgage would be similar to the cost of renting.
For a greater comparison, the table below breaks down basic utilities, apartment rentals and apartment buying costs for Lisbon and Porto in Portugal, New York, New York, The Villages, Florida and Savannah, Georgia. Data was pulled from Numbeo.com in September 2021.
How To Apply For An Indonesia Retirement Visa
To apply for a retirement visa in Indonesia, you must hire an Indonesian retirement/travel agency to act as your sponsor. The agencies which can act as sponsors are appointed by the Tourism Department and the Directorate General of Immigration of Indonesia.
They have to submit the application on your behalf at the Indonesian immigration authorities since you are not allowed to apply yourself. These companies will be informed about what kind of documents you have to submit and how to get them, how to lease an apartment, where to get health insurance, etc.
Make sure to research the company you intend to hire thoroughly so you know they are a reputable company.
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Early Retirement For Military And Civil Service
Early retirement at age 55 or younger is more common among people who began military or civil service at an early age. This includes police officers and firefighters. Pension plans for these employees typically allow workers to retire with full pension payments before the age of 65. For example, the Civil Service Retirement System allows all workers to retire with full pension benefits at 62, or at 55 under qualifying circumstances. Air traffic controllers can retire after 25 years of service, no matter their age.
In addition, the rule that allows qualifying workers to draw on 401 funds at age 55 is even more forgiving for some government employees. People who work in public safety, customs and border protection, federal firefighting, and air traffic control may be eligible for penalty-free withdrawals from their 401 plans at age 50.
Elective Deferrals Must Be Limited
In general, plans must limit 401 elective deferrals to the amount in effect under IRC section 402 for that particular year. The elective deferral limit is $20,500 in 2022 The limit is subject to cost-of-living adjustments. However, a 401 plan might also allow participants age 50 and older to make catch-up contributions in addition to the amounts contributed up to the regular 402 dollar limitation, provided those contributions satisfy the requirements of IRC section 414. These limits apply to the aggregate of all retirement plans in which the employee participates.
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Circumstances Determine Your Retirement Age
The age when you can retire varies according to your circumstances. In states with a higher cost of living, such as Hawaii, California, or New York, you might not be able to retire early or at the age you want, because you need to save more money to continue living in those areas.
People with college degrees generally have higher-paying jobs, which means that they are more likely to be able to retire at the average age if they plan well. A person’s retirement age also depends upon their standard of living.
If two neighbors make the same amount of money in a year, but one saves and invests while the other spends, the saver might be able to retire earlier than the spender.
The map below shows a breakdown of the mean retirement age by state.