Despite historically low inflation costs, the actual cost to live in the U.S. is simply out of control in many areas of the country. Did you know that the median property tax amount alone in New York state is roughly $5,040? And for the residents of New Jersey, the median property tax amount is a whopping $7,318 annually. Check out the Smart Asset website tool to find out how your state’s property tax rates compare to these numbers and current national averages.
But I’ve paid off my mortgage – I should be fine financially, right?
So you’ve worked hard and maintained the discipline to pay off that 30-year mortgage note, congratulations! Unfortunately if you are living in the state of New Jersey, you’d still need to budget at least $610 per month to pay in property taxes alone to continue to reside there. For some, a $600 plus monthly financial obligation would be too much to bear.
Does living a “nice” lifestyle on Social Security and small savings alone even exist?
Sure it does! If living off of social security income and a small savings is what you have to work with, the opportunity to live in a warm climate where property taxes are as low as $53 per year (yes you heard right) can become VERY appealing.
According to International Living, a monthly newsletter focusing on retiring overseas, over half a million retirees receive their Social Security benefits abroad.
Dan Prescher, 60, special projects editor of the online newsletter says that he and his wife, Suzan Haskins, live in Cotacachi, Ecuador. He went onto to share that most ex-pats in this location have monthly expenses (including rent) of between $1,500 to $1,800.
This is just one example of what moving abroad did for him and his wife financially. And with that, it’s no real wonder why so many baby boomers are packing up and moving on to new countries.