Retirement to South Africa.
A Financial Fillip.
Is South Africa one of the Best Places to Retire?
Retirement has two sides to it although we normally only talk about the one.
We all think of being financially independant and able to do whatever our hearts and minds dictate, but buried under the pile of
dreams lies the spectre of longevity and "what would happen to me if I outlive my money" or "lose my standard of living due to
inflation outstripping my income growth" or "have medical problems which impact heavily on my mobility and my financial status in life?"
How can I address these problems in practical terms? Because I don't have a crystal ball, I cannot try to plan for the unexpected
or unknown problems of a medical nature. I can, however increase my disposable income and standard of living very substantially
by looking at the benefits of relocation to another country like South Africa.
What are the questions I should be asking myself in order to assess the viability of this option for what could be the most
fantastic time of my life?
I would suggest looking at the following as part of the homework:
In short, there are very few countries that can offer anywhere close to the climate, infrastructure, living style and financial
leverage that are available to retirees when relocating to South Africa.
- What is the exchange rate applicable between my current location and South Africa?
The reality is that the currency of most first world countries offers a multiple income growth to any person moving to South Africa.
As examples, the British Pound would multiply your income by approximately 11 to 12 times.
A British pension of ± £ 3000 p.m. would show a growth in currency units to somewhere between R 30 000 to R 35 000 p.m.
If my retirement income were in AU$ of say AU$ 3500, my Rand unit equivalent would be ± R 25 000 p.m.
- What is the average household income necessary to enable a retiree to live with dignity in South Africa?
The existence level (way below dignity) can possibly be looked at by seeing what Governmental Grant is paid to seniors R 1200 p.m.
If I assume that a retirement with dignity requires at least 5 times this income as a minimum (R6 000 p.m.),
then a Euro based pension of Euro 4000 p.m. would be equivalent to ± R 40 000 p.m.
This is sufficient to live a relatively luxurious lifestyle.
- Governmental infrastructure levels can normally be measured by looking at the banking system in a country.
In South Africa the banking system is on a par with almost any in the world and is better than a substantial number of countries.
- Medical costs and services within the private sector are extremely good, but they are expensive.
If you are suffering from chronic ailments that are likely to get worse over time, you may wish to cost medical
facilities by comparison with you current situation carefully before making a decision.
- Housing is the next item to be looked at. Retirement Villages in the RSA offer various choices for the purchase of one's
own two bedroomed unit for amounts varying from around R 850 000 to possibly R 4 000 000, depending on what kind of ownership choice is selected.
There is however normally the assurance of a fully equipped medical facility and total infrastructure that will cater for most eventualities.
Looking at the website www.seniorservice.co.za will give an idea of what is available.
- Security is a question on everyones lips, and it would be naive to say that there is no problem, but
then this is true all over the world. With capital and / or income stream at one's disposal, all undesireable areas
can be avoided and one can buy according to one's own requirements, without buying in places which are best avoided.
This is a universal reality worldwide.
- Communication ability is of course an imperative in my arsenal and with English I can do almost anything in South Africa - read, write, converse
and not get lost.
Don't give up your passport and citizenship, just allow yourself to consider actually realising that dream you have always had - you deserve it.
Many thanks to Paul Rosenbrock of www.saarp.co.za fpr supplying this article.
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