It is probably impossible to buy insurance for the risk of making a mistake in selecting a country to which to retire.
Precautions amounting to safeguards similar to those provided by insurance policies are possible.
One of the most important pieces of advice offered to those considering retirement abroad is "Obey the Golden Rule".
The "Golden Rule" is to make no final choice or irrevocable action without having visited the new country at least once.
This rule always remains good and is a kind of insurance.
It is in fact just common sense but that commodity is rare.
That makes stating an obvious rule good advice.
Taking prudent financial precautions will also lessen the chances of loss.
Both the Golden Rule and good financial arrangements represent kinds of insurance.
The best financial insurance for retirees is the opening of an offshore bank account.
This amounts to a kind of asset insurance that observance of the "Golden Rule" provides in a physical sense.
Such a precaution will enable retirees to avoid the difficulties that have overtaken those who chose to move to Europe over the past few decades.
Described below is the plight of many now impoverished expatriates.
An offshore bank account is an account in a country different from the country of residence.
For safety it is important that the "banking country"is politically and economically stable and have a sound and reliable banking system in which there are banks of good worldwide repute.
Over the last thirty or forty years many more people have worked and lived abroad than did so in the first half of the twentieth century.
There have been multiple reasons for this.
Travel has become more comfortable and easier.
Border controls have eased in much of the world.
This is still the case in spite of recent restrictions imposed in these area owing to responses to terrorist activity such as 9/11, the World Trade Centre twin towers attack in New York, and other atrocities elsewhere.
For decades there have been almost no border controls between countries that are part of the European Union.
Common passports and currencies have made movement between these countries very easy.
Increased aid in kind other than cash to developing countries have seen working opportunities increase throughout Africa and Asia.
In Europe especially the virtual elimination of national borders and the free movement of money have allowed more young people than ever before to take up jobs in and to move to neighbouring countries.
From the United Kingdom in particular those with acceptable work and language skills or qualifications or just with adequate funds have taken up residence in, for examples, Spain, Portugal, France, Italy, Greece and Cyprus.
These countries could offer what was not available in the United Kingdom.
All had good and dependable weather and a lower cost of living.
Many people sold up their interests in the United Kingdom and favorable exchange rates allowed them to buy property cheaply in the new country.
Often the properties acquired were large and an adequate income could be derived from renting cottages newly built or already existing on site, apartments in a purchased block or caravan or camping sites in rural areas.
If asked none would have even contemplated moving back to the United Kingdom.
The intention was expatriation for life.
There were few arguments against this movement abroad.
Contact with the country of origin diminished and often became just tourist-like trips for special events such as a friend's birthday or wedding.
As much of the home culture as the expatriates wanted could be derived from the increasing tourist traffic to the new country.
For many years things went well.
Times change.
History suggests that it is unlikely that conditions in countries and international relations will remain constant for more than a few decades.
This is much shorter than the average working or, often, retirement life span.
Many people, particularly in Spain, Greece and Cyprus, are now encumbered with worthless property after the Global Financial Crisis and the continuing European debt problems.
They do not now have the capital or realizable equity in their property to return to the home country where they could enjoy the support of friends and relatives.
The diminished tourist trade has left them feeling further cut off and estranged from what they now, again, regard as "home".
These problems could be repeated anywhere.
For those who hope to retire abroad history should always be taken as a warning.
The "Golden Rule" provides some protection against immediate difficulties that cannot be perceived from a distance.
The second piece of advice given by this rule, that "no irrevocable action be taken", extended to financial assets, is simply a prudent precaution.
There is no point in moving all capital to a country only to find that conditions change and its worth is greatly diminished.
Even worse would be a situation where political considerations necessitate departure from the retirement country but newly introduced rules prevent the removal of capital funds.
An offshore bank account with a relationship to what will be, in an emergency, the home or "country of last resort" is a kind of insurance that cannot be bought.
For safety it is important that only the least necessary amount of capital and recurrent income be brought into the new country of residence.
Retirees have less time, if any, to recover from a disaster than the young.
The "Golden Rule" carefully observed with respect to physical planning and financial matters gives those contemplating retirement abroad insurance against unexpected and unforeseeable problems.
Standard insurance policies to protect against these risks cannot be bought.
Such safeguards should never be ignored especially by retirees.
Precautions amounting to safeguards similar to those provided by insurance policies are possible.
One of the most important pieces of advice offered to those considering retirement abroad is "Obey the Golden Rule".
The "Golden Rule" is to make no final choice or irrevocable action without having visited the new country at least once.
This rule always remains good and is a kind of insurance.
It is in fact just common sense but that commodity is rare.
That makes stating an obvious rule good advice.
Taking prudent financial precautions will also lessen the chances of loss.
Both the Golden Rule and good financial arrangements represent kinds of insurance.
The best financial insurance for retirees is the opening of an offshore bank account.
This amounts to a kind of asset insurance that observance of the "Golden Rule" provides in a physical sense.
Such a precaution will enable retirees to avoid the difficulties that have overtaken those who chose to move to Europe over the past few decades.
Described below is the plight of many now impoverished expatriates.
An offshore bank account is an account in a country different from the country of residence.
For safety it is important that the "banking country"is politically and economically stable and have a sound and reliable banking system in which there are banks of good worldwide repute.
Over the last thirty or forty years many more people have worked and lived abroad than did so in the first half of the twentieth century.
There have been multiple reasons for this.
Travel has become more comfortable and easier.
Border controls have eased in much of the world.
This is still the case in spite of recent restrictions imposed in these area owing to responses to terrorist activity such as 9/11, the World Trade Centre twin towers attack in New York, and other atrocities elsewhere.
For decades there have been almost no border controls between countries that are part of the European Union.
Common passports and currencies have made movement between these countries very easy.
Increased aid in kind other than cash to developing countries have seen working opportunities increase throughout Africa and Asia.
In Europe especially the virtual elimination of national borders and the free movement of money have allowed more young people than ever before to take up jobs in and to move to neighbouring countries.
From the United Kingdom in particular those with acceptable work and language skills or qualifications or just with adequate funds have taken up residence in, for examples, Spain, Portugal, France, Italy, Greece and Cyprus.
These countries could offer what was not available in the United Kingdom.
All had good and dependable weather and a lower cost of living.
Many people sold up their interests in the United Kingdom and favorable exchange rates allowed them to buy property cheaply in the new country.
Often the properties acquired were large and an adequate income could be derived from renting cottages newly built or already existing on site, apartments in a purchased block or caravan or camping sites in rural areas.
If asked none would have even contemplated moving back to the United Kingdom.
The intention was expatriation for life.
There were few arguments against this movement abroad.
Contact with the country of origin diminished and often became just tourist-like trips for special events such as a friend's birthday or wedding.
As much of the home culture as the expatriates wanted could be derived from the increasing tourist traffic to the new country.
For many years things went well.
Times change.
History suggests that it is unlikely that conditions in countries and international relations will remain constant for more than a few decades.
This is much shorter than the average working or, often, retirement life span.
Many people, particularly in Spain, Greece and Cyprus, are now encumbered with worthless property after the Global Financial Crisis and the continuing European debt problems.
They do not now have the capital or realizable equity in their property to return to the home country where they could enjoy the support of friends and relatives.
The diminished tourist trade has left them feeling further cut off and estranged from what they now, again, regard as "home".
These problems could be repeated anywhere.
For those who hope to retire abroad history should always be taken as a warning.
The "Golden Rule" provides some protection against immediate difficulties that cannot be perceived from a distance.
The second piece of advice given by this rule, that "no irrevocable action be taken", extended to financial assets, is simply a prudent precaution.
There is no point in moving all capital to a country only to find that conditions change and its worth is greatly diminished.
Even worse would be a situation where political considerations necessitate departure from the retirement country but newly introduced rules prevent the removal of capital funds.
An offshore bank account with a relationship to what will be, in an emergency, the home or "country of last resort" is a kind of insurance that cannot be bought.
For safety it is important that only the least necessary amount of capital and recurrent income be brought into the new country of residence.
Retirees have less time, if any, to recover from a disaster than the young.
The "Golden Rule" carefully observed with respect to physical planning and financial matters gives those contemplating retirement abroad insurance against unexpected and unforeseeable problems.
Standard insurance policies to protect against these risks cannot be bought.
Such safeguards should never be ignored especially by retirees.
Source...