Monthly Wrap: Keeping costs down when retiring abroad in 2022

By Currencies Direct on June 30, 2022

Retirement should be about relaxing and spending more time doing the things you love, it shouldn’t be about worrying about money. But in the face of spiralling costs, the dream of retiring abroad may seem out of reach for many of us.

However there are steps you can take to help keep costs down when retiring abroad, some of which we will explore in this article.

1. Plan your retirement

Whether you are currently retired or are in the process or preparing for your post-work life, planning is crucial to ensure you are in the best financial position to retire comfortably.

Whilst many retirees see their expenses fall dramatically after they stop working, this is not always the case. Even with a drop in commuting and transport costs, or expensive work lunches, and many other expenses associated with the 9-5 life, unexpected new outgoings inevitably appear.

Reviewing your current finances in depth will help you build a clear picture of your outgoings, with things like mortgage payments, monthly direct debits, and personal expenses.

With extensive knowledge of your existing outgoings, you can start to see how much you have left after pension payments. At this stage you’ll have a better idea if retirement will be comfortable with your current finances.

Retiring abroad could allow you to dispense with certain expenses. Expensive TV services, or even the TV itself, could all be left behind, as could the accompanying phone package. By looking into cheaper options for services you still want to keep, you could be saving hundreds over the course of the years.

2. Opt for semi-retirement

While the world of 9-5 may be behind you, that doesn’t mean you have to entirely give up on work. Part-time work can be both financially and socially rewarding.

Picking up a job in the retail or hospitality industry would allow you to meet new people, help learn the local language, and of course provide an extra income revenue.

Another option could be looking at your hobbies and considering whether they could be turned into an alternative revenue stream.

Without the pressure of balancing a full-time job with making that dream of writing a novel a reality, now is the perfect chance to realise that. If art or craft is more up your street, you could start selling your artwork either locally or online.

3. Downsize

A smaller home not only means lower utility bills and fewer maintenance costs, but also could mean your home is much easier to look after, allowing more time to enjoy retirement.

A step further could be to move in to an apartment, a smaller footprint will help to keep costs down. In most countries you will also be able to find apartment complexes aimed at retirees which may provide facilities which offer savings without needing to compromise on your lifestyle.

Another area to consider downsizing could be in your car use. Prior to retirement many households require multiple cars to cater for separate working lives. But if you and your spouse or partner are both enjoying your retirement, you may only need a single vehicle.

The size of car may also be worth looking at, a smaller car means lower fuel costs. Alternatively, as most countries subsidise public transport for pensioners, it may be cheaper to rely upon the bus or train depending on your travel requirements.

4. Explore your currency options

Another way to help your money go further when retiring abroad is to consider your currency options. Moving your money with Currencies Direct is often more cost effective than making the same transfer through your high-street bank.

Our highly competitive exchange rates coupled with fee-free transfers means you could make immediate savings by transferring your money with us.

In addition, we offer a range of services which can help you to simplify the transfer process and give you more time to enjoy your retirement. A particularly useful service is our regular transfers, with which you can automate the transfer of your monthly pension payments to a local bank account.

To find out more get a free quote online or contact one of our friendly currency specialists to find out how much you could save by transferring your money with Currencies Direct.