What to consider when retiring abroad in Latin America

Latin America lures retirees from Canada and the U.S. who are looking to escape cold winters and make their retirement savings go further. However, a happy retirement isn't only about finding 300 days of sunshine or even the perfect destination. It's about having a flexible and open attitude to a new way of life in a new culture.

For most, it requires testing out a location for a few months to see if it fits. It also requires carefully considering practicalities, such as healthcare options, access to culture and community, and convenient ways to return north to loved ones.

Kiernan left her job as a healthcare executive in 2012. After downsizing and putting her things into storage, she travelled around Latin America looking for a future retirement destination for 10 to 15 years down the road. Colombia wasn't even on the list until she got a tip to check out Medellín from an International Living conference in Quito, Ecuador.

Kiernan found that Medellín hit all the points she wanted in a home. The city's “eternal spring” climate certainly was a pleasant change from the colder, harsher North American weather, but it was more than mild weather that contributed to the big decision.

“For me, Medellín is the perfect balance of lower cost of living and first-world living conditions, such as excellent healthcare, a great gastronomy scene, drinkable tap water and stable utilities,” she says.

Kiernan also cites the cultural things to do, such as theatre, concerts, film and shopping, as well as direct flights north from the international airport, as added benefits.

For Gilles Le Maire, Medellín checked off his most important boxes when it came to retirement and moving from Montreal: avoiding long Canadian winters, enjoying a higher standard of living at a lower cost and reducing his income-tax responsibilities.

Retiring on a pension from the Canadian Federal Civil Service, Le Maire found Medellín during his second go-round for a Latin American retirement home. He'd lived in Mexico City 20 years earlier, and so he returned there for the first seven years of his retirement. But, ultimately, he was searching for a more active expat community and found it in Medellín.

Le Maire's advice for Canadians considering a Latin American retirement is to learn Spanish and try out a city for a few months. He believes that's the only way you can truly get a feel for the environment and determine if you can live in a place long-term — past the honeymoon period when you’re unable to recognize any flaws. And don't expect the same lifestyle you had back home.

“It's a different culture — adapt to it,” he says. “Don't expect Canadian standards, such as time and efficiency, to be the same, and expect to have to be very patient. Everything is slower when dealing with private or government organizations.”

Already knowing Spanish and finding a trustworthy real estate agent eased a lot of headaches for Le Maire. “There's also a lot of paperwork to deal with, and one little error can send you back to starting all over again,” he says.

He points out the requirements for someone to become a real estate agent in Colombia are less rigorous than in Canada and the U.S. Since there's no regulatory system for real estate agents, he advises looking for agents with good reviews and asking for recommendations within the expat community.

Jim Santos moved with his wife, Rita, from Cambridge, Md., to Salinas on Ecuador's Pacific coast, where it's possible to own a beachfront home for less than $150,000. There's no need for heating or air conditioning in most of the country. You don't really need a car either, with bus fares costing 30 cents or less and cab rides for $2 to $5.

Santos recommends couples make sure they're both on board with expat retirement life.

“The successful expat isn't running away from something — they're looking forward to new experiences,” says Santos. “It's important to be flexible and to understand that your life is going to be very different. You have to accept that your new country isn't going to change for you, you will have to make some changes yourself.”

The advice echoed by many of these retirees in Latin America is to embrace the new elements of living abroad instead of trying to recreate the life you already had back home. And don't forget to factor in home-country expenses and the long-term expectations of family members, too, says Kiernan.

Remember that your move abroad is also a transition for family and loved ones up north. Talk to them about your retirement plans early on. Discuss schedules and factor visits back home into your budget. Invite them to spend some time in your new home to see the life you've created abroad.

A perfect retirement location is different for everyone. Beyond year-round spring-like days and affordable real estate, it's ultimately about whether you feel the new place fits you and you can learn to fit it.

As Kiernan says, “The perfect place [to retire] is where you feel like you are home.”