Retirement doesn’t have to be location specific. In fact, some retirees are abandoning their permanent home.
Instead, they embrace the “digital nomad” lifestyle, which allows them to travel to countries where the strength of the US dollar allows them to live a life of luxury, or travel to destinations that have been on their bucket list.
This retirement model may look different from one retiree to the next. Some rely on part-time work to pay bills while others rely on private income in the form of 401(k) withdrawals and Social Security, or other forms of passive income. Here’s what you need to know.
The benefits of a digital nomad lifestyle
There are no rules for what a digital lifestyle should look like. Some retirees may bounce from one place to another frequently, while others settle for a few months or years at a time. Either way, the retirement model gives you options.
Living in a city like Lisbon or Panama City, for example, may give you more flexibility when it comes to housing compared to what you would find in an expensive US city. Opting out of US home prices can help preserve your savings, giving your nest egg a long way. You may also be able to travel more – and eat and shop – as your budget will have more breathing room.
And remember: Digital retirees don’t have to be digital nomads forever. Some neighbors spend more than a decade in another country before returning to the US
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The digital nomad tech toolkit
If you’re a digital nomad — especially one who relies on part-time work — you’ll need access to the Internet and a few essential tools.
Social media platforms like WhatsApp and Zoom allow you to stay in touch with your American family and friends while avoiding expensive texting fees. International banking apps are also essential for the digital nomad to ensure they can access and spend money in their preferred location. A high-speed VPN is useful because it encrypts your Internet Protocol (IP) address, giving you extra security when you’re online. That’s especially important if you plan to use public Wi-Fi, such as in coffee shops and airports.
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What digital retirees should know about Visas
You will need a Visa to stay in the country for an extended period of time, and each country has different rules for obtaining a Visa. For example, Portugal’s D7 and Costa Rica’s Pensionado are popular types of retirement visas that make it easier to stay in those countries for longer than a tourist stop.
Be sure to research Visa requirements before choosing your destination.
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Maintaining the social safety net
One of the downsides of being a digital nomad is that you risk losing touch with family and long-time friends. Keeping in touch with a weekly or monthly video call can help you stay in touch, and keep you from feeling lonely.
But you also want to make time for new friends. Consider attending local classes and clubs in a new area, as well as discovering foreign communities.
