With the rising cost of living in the US, many retirees are feeling like they aren’t going to be able to live the retirement of their dreams. After all, when you are on a fixed income, rising living costs become difficult to manage. This is why many people are opting to retire abroad by looking for a country with a low cost of living that also offers a high standard of living.
This means that many are looking into moving to Mexico. It is close to home to visit friends and family. It has a great climate that works well for seniors and fantastic people and cuisine. There are a few things to understand before you set out on your way to retire there, however. There are a number of requirements that you’ll have to fulfill so you can live there full-time and be able to get the most out of it.
In this article, we will go over several of the essentials to know about so you can retire to Mexico and live your dreams.
1 – Get insurance
Having insurance is very important for seniors. You will not be able to get onto the public insurance scheme when you are a retiree until later on. This means that you will need to be covered by your own private medical insurance in Mexico. The public option is paid for by taxes and is free for residents and citizens. Since you haven’t been paying into the system, you won’t be able to take advantage of it.
With private insurance, you will have access to excellent care as the medical facilities in Mexico are on par with the US for the most part. A few extra perks are that you won’t have the wait time for certain specialists that would occur if you were on the public system for non emergency things.
Many of the policies that you will be able to choose from will have various options for the individual country where you will be living, in this case, Mexico, so you can find the right policy for your needs. You may even be able to get evacuation insurance in case of a natural disaster or some other event that requires you to get out of the country quickly and safely.
2 – Get the right visa
As an American, you don’t need a visa to enter Mexico and stay as a tourist. However, to stay long-term as a retiree, you will need to have a visa that permits you to do this. If you were to come and overstay on your tourist visa, not only would you get in trouble when caught, but you won’t be able to do simple things like renting an apartment or opening a bank account.
Make sure to go to the consulate nearest where you live and apply for a retirement visa. You will need to show a minimum income through retirement funds or investments, but once you have the visa you are able to stay in Mexico for the long term. The first one you get will last you for four years and then can be renewed. After that, you can apply for permanent residency which doesn’t need to be renewed any longer.
3 – Have a budget
Since you are on a fixed income you will need to make sure to live within your means. Although the cost of living is lower than what you’re used to, you can still get into trouble by going overboard with your spending. It is easy to do in Mexico since some luxury things are cheaper so you will be tempted to spend money on them.
Take the time to figure out what your expenses will be so you can then make a budget. Housing will likely take up the bulk of the budget but try to make sure to not spend more than 25% to 30% of your income on the rent. You’ll also have to factor in other household expenses such as gas, electricity, water, and internet.
There should also be groceries featured prominently in your budget. It is likely to be your second biggest expense when living in Mexico. Fortunately, the cost of food there is remarkably low. Even eating out is very cheap if you stick to street food stalls and small boutique restaurants.
Take your income and then subtract these items and see what you have left for spending on things like trips or buying clothes and other items.