Two sisters came to an upsetting realization in 2020. They wanted to retire but were far from being able to afford it. At the time, Jennifer McGuire, 72, worked as a cataloger at an auction house, while Kat McAfee, 69, was on disability. As a result, their funds were limited, and their options even more so. That is, until the sisters moved out of the United States and retired in a house they can afford in Europe.
They couldn’t afford to retire in “a decent home.”
Before the move, the sisters lived in a four-bedroom house in Beacon, NY. They paid $1,500 per month on their mortgage, McGuire spent $475 a month on commuting for her job, and in the winter, they spent about $600 a month on heating due to the home’s poor insulation. “We saw that living on our combined Social Security benefits would not allow us to have a decent quality of life,” says McAfee. “We still had a mortgage and no savings or investments.”
At first, they planned to retire somewhere cheaper in their home country, but that didn’t provide many good options. “We saw that we could not afford a decent home in any areas of the U.S. that we would enjoy living in,” says McAfee. For example, areas in the South may have worked cost-wise, but not culturally or politically.
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How to retire abroad
So they began looking at places abroad, and ended up in Dordogne, France, where the retirees can live comfortably on a joint $44,000 annual income. Many Americans hoping to retire may be envious of this plan so the sisters offer advice for those who want to replicate their success. Their tips involve five important guidelines:
- When looking for potential homes, cast a wide net.
- Use a trustworthy real estate agent.
- Research the residency requirements of the potential country.
- Remember to factor in the costs and efforts of moving pets.
- Expect the unexpected for better and worse.
Tip 1: Cast a wide net
Before deciding on a small town in France, the sisters looked for other locations where Americans typically retire, like Mexico, Costa Rica, Portugal, and so on. They became close to choosing a fixer-upper in Italy for the price of $1 before they realized the extent of the needed renovations.
Then McGuire recalled visiting Dordogne years ago, with all of its beautiful scenery, rustic homes, castles, and pleasant residents. In fact, the area is well-known for its rich history since it contains Roman ruins and prehistoric cave paintings and more. There’s a lot of appeal for tourists, and for the sisters, who realized they could afford a large home at a much cheaper cost compared to the other places they had looked at.
Since it would’ve been difficult to get a mortgage as two foreigners, they sold their New York home and used the profit to buy their house.
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Tip 2: Use a good real estate agent
The sisters worked with Emer Kelly of Leggett Immobilier, the listing agent of a beautiful, Perigord-stone house with a large garden. It was listed for 89,000 euros. The sisters got it for 82,000 euros plus 2,500 for the furnishings that came with the property.
Tip 3: Research the residency requirements
Moving abroad comes with many bureaucratic details. It began with getting temporary visas, for which they needed to prove they had enough money to support themselves, a place to live, and private health insurance. They also opened a French bank account to have alongside their American accounts. There was also the matter of setting up phone lines and internet, as well as getting their name on the property’s water and electricity bills.
Since the retirees hadn’t spoken French since high school classes, they began taking regular lessons. Other important factors to consider is the exchange rate and health insurance available to foreigners.
Tip 4: Moving pets
McGuire and Kat McAfee ended up hiring a pet-relocation service for their seven cats. It took care of the required vet visits, liaisons with a pet service in France, flights, and all of the paperwork. The process cost $10,000 but the sisters thought it a worthy investment. “It would have been impossible for us to do all this ourselves,” says McGuire.
Tip 5: Expect the unexpected
“Without a real estate agent like Emer, we would have had a very different experience,” McGuire says. The agent had ensured the water was turned on, and had taken care of the cable and phone installation. So, the retirees were thrilled with their new home. “If anything, it felt much bigger than I expected,” says McGuire. “There was a lot more stuff than I realized, like closets full of tools, hardware, and cleaning supplies.”
One of their biggest obstacles was getting McAfee’s driver license since she had to complete a written test in French. They recommend other Americans get a driver’s license in a state with a reciprocal agreement with France.
Not for everyone
Despite the cheaper housing, many people wouldn’t enjoy retiring in another country, especially those who like routine or feeling in control. “Learning a new language well enough to not get frustrated at sounding like a child is a big task for people our age,” McGuire says. “You have to accept a different culture and expect that everything will be different from what you’re used to.”
Additionally, many would recommend renting a place before buying. This will give the opportunity to experience life in the new country without a big commitment. Plus, the lifestyle and culture can vary from city to city, even from neighbor to neighborhood. The freedom to move around can be helpful. For example, some people may prefer to stay in an English-speaking community while others may prefer to adapt to the local culture.
The best place to live
After two years in France, the sisters feel at home. “Where we live is the most beautiful place in the world,” McGuire says. “It is clean, green, medieval, and sparsely populated. The area is called the Land of a Thousand Castles. We love castles. So what better place for us to live?”