Retirement planning is witnessing a drastic change in India. From the quantum of savings to the expected lifestyle, everything is being planned very meticulously. Not too long ago, children were expected to take care of their parents and most people would retire to the quiet family home in a small town. But active retirement planning has taken centre stage for the current crop of working professionals, as a result, more and more people are systematically investing in mutual funds to ensure a fulfilling post-retirement life. With this change, the concept of retiring to the family home or shifting to the ancestral village is finding few takers and some are even opting to spend their post-retirement time in a foreign country. Nations in Latin America such as Costa Rica, Panama, Ecuador, Mexico, and Peru have emerged as the top destinations for internationally mobile retirees.
Where is Latin America?
Latin America consists of countries in South and Central America, in addition to the Caribbean islands and Mexico. According to the Encyclopaedia Britannica, “The people of this large area shared the experience of conquest and colonization by the Spaniards and Portuguese from the late 15th through the 18th century as well as movements of independence from Spain and Portugal in the early 19th century.” The 20 sovereign countries and several dependencies in Latin America are connected through a common linguistic thread where Romance languages such as Spanish, Portuguese, and French are predominantly spoken.
Why Latin America?
A culmination of various factors has made Latin America a preferred destination not just for Indians, but also for a large number of American and Canadian retirees. A temperate climate, majestic mountains, long shoreline, relaxed pace of life, a rich culture, friendly people and above all, affordability, has made the region the top choice for retirees. Moreover, countries like Panama have introduced special programs offering special benefits and discounts to retirees. Six of the top 10 countries in the Annual Global Retirement Index 2019 compiled by International Living were from Latin America. Let us take a look at some of the factors for the region’s attraction.
Source: International Living
Affordable Cost of Living
People have to fork out the most for rent and food expenses, and Latin American countries score well on both these counts. Renting a house or buying a property is relatively cheap in most countries, except the capital cities. A two-bedroom furnished house can be rented for 35,000 rupees in Costa Rica, while an ocean-view property can be bought for around 14 million rupees. If it sounds too expensive, then you can consider Peru, where rents start at 10,500 rupees for houses in decent neighbourhoods, and a couple can live comfortably with a monthly budget of 140,000 rupees. Fresh fruits and vegetables, as well as dining options, are affordable all throughout Latin America.
Access to Quality Medical Services
While retiring, one of the biggest concerns is the cost of medical care. Most of the Latin American countries have state of the art medical facilities providing services at rates comparable to India. International Living’s correspondent Nanette Witmer says, “Healthcare in Panama is good and affordable for minor problems. Most clinics charge a nominal fee of between $20 and $60 for an office visit. Hospitals in larger cities are all of the state-of-the-art equipment and specialists can be found in any field.” Healthcare expenses are bound to rise with age and only planned investments can help in times of need. Investment in good mutual funds can generate a substantial amount in the long run. At Finserv MARKETS, you can choose from a host of mutual funds suited to your financial goals, and also get investment ideas for retirees.
Wide Variety of Places to Live
Being a very large and diverse region, Latin America offers a wide variety of locales ranging from mountainous areas to beaches. From small mountainous towns in Chile and Peru to beach towns like Puerto Vallarta in Mexico and San Blas in Panama, the region does not have a dearth of options. Excellent connectivity through international airports makes moving around and flying back to see relatives very easy. Besides numerous options to live in, most countries in the region also have a significant expatriate population, which makes settling.
Source: The Telegraph
A post-retirement life in Latin America can be affordable, healthy and enriching. The low cost of living, however, can feel expensive without a proper pension plan or a financial backup. If you are planning to retire in the pristine locales of Latin America, start investing in a mutual fund which satisfies your financial goals. Choose a mutual fund which matches your risk profile and return expectations. Finserv MARKETS has demystified the mutual fund investment process with a simple one-step buy and sell process.
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