Why do we want to retire in India?
There are two parts to my answer. The first is that my wife and I want to retire early. More precisely, we want to be financially independent, and free to do what we want to do, without being tied down to our corporate jobs.
The second part is driven by the fact that traditional estimates for the amount of money needed to retire early in the US tell us that we have a very slim chance of achieving this in my early fifties. Our best bet is to consider moving, at least temporarily, in our retirement to a low-cost country where our savings will take us farther.
The obvious choice for me is India, since it is the country of my birth, and the country I know best after the US. This may seem somewhat ironic, because I emigrated from India in my early twenties to the US looking for better opportunities. I indeed found them in the US, and I am very happy to be living in America. But somehow, spending some or all of our retirement years in India seems like the right thing to do.
Why? Let me list some specifics:
- Incomes in the US are still among the world's highest. America is a great place to live and work when you are young and healthy. Once you stop working, however, it starts to look less attractive, financially speaking. Without a high income to offset the expenses, you are going to need a considerable nest egg to support a comfortable retirement.
- India on the other hand is a bargain for those with a modest amount in retirement savings. In many places in India currently, a retired couple can live quite well on $1000 a month. Thanks to the bigger labor pool, it is easy to find household and other help in India. This is especially of importance to retirees.
- Health care is quite affordable in India, compared to the outrageously high prices in the US. The quality of care of course is not the same, but this is something you can control when you pick a place to retire. Long-term care (nursing home care), too, is quite affordable in India.
- Most of my (and my wife's) extended family is in India, and this will give us a chance to be in touch with them like we have never been able to do in my adult life. However, our desire to retire in India is not primarily driven by a desire to "return" to India. For example, we have no desire to work or raise children in India.
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37 comments:
Nigel,
1000 USD will (currently) provide for a very good standard of living for retired person in India. Quality of health care is pretty good - if you are willing to pay for it. Long term care as you mentioned is also pretty affordable. Lots of new "retirement communities" springing up in India now a days. I plan to buy an apartment in one of those to retire in future.
regards,
Prasanth
I agree with you on most of the items. But sometimes the cost of premium(I mean above average) stuff in India is increasing exponentially. Do you have some guideline to build a "Retirement" portfolio ?
Sandeep,
Considering that my main reason for retiring to India is the lower cost of living, "premium" items may just be out of reach for a frugal retiree like me. One should be able to handle the normal effects of inflation even with a modest portfolio, however. I will surely cover portfolio allocation in future posts.
I just found your blog when i use the 3 columns hack from blogger tips.
cool! your retirement plan in india is very interesting topic.
I naver been to india. but my boyfriend is starting a business in India. I'm deciding to move to stay with him when we married. Sounds difficult but great to found your blog.
cool,
Kate
I am from Australia and there are many good places like Cairns and small coastal towns that are cheap and easy going. If you got a fully paid off home then you can survive there for about US$1000 per month.
India will be a lot cheaper. If you rent and eat in places like "Classic Kudumbum" the cost is very low.
Nigel,
I am from New Zealand. Reaching retirement - wondering if there are established retirement ares, colonies in place. Also need to find out how to get around the immigration issue - is there a retirement visa in place or being discussed.
Malaysia has launched the MM2H (Malaysia My 2nd Home) prog. You are given a 10-year visa.
Any help/info appreciated. Going to check out Malaysia at X'mas, but would like to consider India as well.
Rgds
Cyril
Cyril,
Unfortunately Indian regulations actively discourage foreigners who want to retire to India. The only place I know where there are a large number of non-Indian retirees is in Goa, and recent news from Goa is not good for foreign settlers.
I am planning a post on the immigration situation in India for non-Indians.
We have been thinking of living in India and the US in our retirement years. Probably 6 months in each country. To that end, we have purchased a home in Magic Hills development on the Mumbai Pune Expressway (www.sternon.com). We am also going to apply for Person Of Indian Origin (POI) status that will let us stay in India for upto 6 months without registering with local authorities.
What would be the cost of getting medical insurance in India for the months one stays there, does anyone have an idea?
Anon,
Good to hear about your plans. I don't have much information about medical insurance for part-time residents in India. There are many insurance companies providing medical insurance coverage in India now, so I'm sure you would be able to find one that suits you. Please post a comment or drop me a note if you find one that you liked.
Just curious, why did you opt for the POI when the OCI (Overseas citizen of India) status seems to be more flexible?
Nigel
I am looking at the difference between PIO and OCI. Since my father was born in India (I was born in Africa), it appears I can qualify for OCI, which is more flexible, I agree.
regards,
It is my dream to settle in India. I have come to US for college and have been working in US for the past 15 years. The catch is that my kids will be settled in US when I settle in India. This separation bothers me a little.
Intresting and thought provoking theme.
I think for those who have stayed in comfort zone of western world should feel less perturbed by monetary gains/losses than mental mindset to re-root themselves in a country that has diluted ethical, moral standards from the era when they left.
If one can have tenacity to go through rigours of travel hazard, pollution, corruption and aim for traquil and sedate life, India is sojorn for retired persons.
Guys as you retire its not just the costs and amenities but the feeling of belonging and being part of something that keeps people alive
The japanese have an expression for it that I have forgotten. To wake up each morning with a purpose.
We are building a lovely little retirement community that amongst other facilities and amenities offers an opportunity to live an involved lifestyle and feel belonging.
Check out Melur Meadows at http://www.melurmeadows.com
Great to find this site. I am an American living in Nargol, Gujarat. I would like to find a better place in India to retire where it is quiet, yet close enough to some activities and medical care.
What type of visa to you recommend for a USA citizen to get? Does OCI work for USA citizens?
Anon,
Options for non-Indians aren't that great. See my post Retirement visa to India for non-Indians for more details.
Hey Nigel,
I have been reading few of your articles. I am 40 year old India Born Naturalized US Citizen professional (closely match your profile!). We don't have your net worth and that's OK.It is what it is. We are planning to return to India early next year. Procrastination may be fatal in this particular case. My son is 4 years old. We have determined that he should start his 1st grade in India. I am not exactly retiring but I am not going to be in the workforce in the strictest sense of the word either. I am planning to start a US-based consultancy business with my current US-based friends. Planning to live a frugal life (from US standards at least).
Principal motivator to be back where I belong and stay with the family and friends.
I just wanted to point to one aspect of your plan which may need little more work - Health Care Planning!
My brother is a professional insurance consultant in Pune. He has 20+ years experience in this line. He specializes in Medical Insurance. He regularly writes for various newspapers in India on the topic of sufficiency (or lack thereof) of Insurance coverage.
He has reported steep rise in Medical costs over last few years. He has highly recommended absolute best (and high-end coverage - upwards of Rs 1M). It is cheaper when you buy it early...when you are much more healthier. Every year you delay you may add "preexisting condition" exceptions.
This is a very general statement - so don't bite my head off...I am not a Insurance Consultant! But suppose one gets high-blood pressure before buying insurance...you will get excluded for most heart related conditions for few years after buying insurance...and even later your claim may get denied under preexisting condition clause!
Something to take into consideration!
Good Work!
All very well about India - but can u cope with the corruption, the hostility, the cheating, the filth , the inconveience and INSECURITY of living in India - some places like Delhi are like Baghdad - only thing is terrorists dont carry bombs but cunningness
Nigel,
Great job. I am glad I found your blog.
Would be interesting to know where you are now on your plans..
I am in my late 40's and have been out of India for almost 20 years..but, my heart is back home..I guess because of family and friends. I think it is time to look at opportunites in India..especially if we want to spend more time there.. 2 to 3 wks. holidays are not enough anymore.
We want to establish a group of independent/assisted/nursing homes in India. (based on the US concept)atleast that is my dream. I have been doing my research for almost a year now..have bought a few properties in TN (land to build). Most people I speak too are not encouraging..I am looking at inputs from NRI's - I think the people whom visit your blog might be the right group.
I want to provide a nice community living for less than $500 per month/couple (boarding and lodging)mostly in smaller cities. also give the option to move between our communities etc., I want to tie up with smaller hospitals which are growing like, Lifespring and Columbia Asia which are doing great in the past few years.
I want to be thankful for the jobs we have and all the luxuries we are used to, but, can we not do something in return to our homeland? If I do not do it now..I will never do it..lookforward to your comments.
A co-worker of mine went to india got typhoid. It was no good. there are other options like costa rica.
Very good plan. But I have one doubt. Don't you think by the time you will be of retirement age India would be quite developed and cost of living and healthcare would be comparable with any other country in the globe?
The actual fact is : "India is the best place to retire NOW!!"
Medical Alert wrote that his friend got typhoid when traveling to India. Maybe same friend should have been vaccinated for typhoid before traveling. In Costa Rica you can get yellow fever - if you don't get vaccinated.
Mr. Nigel points are very focused and informative.
But with the current infrastructure and facilities in technology available India is a most preferred place for NRis' for all the reasons.
Most of the cities are good for retiring as long as you live in ths suburban and in a gated sercured community.
It is not the distance from these suburban place but the time of travelthat makes lot of sense for these retired persons to commute to city nearby.
Services like driver/ maid/nurse are comparitively cheaper and easly manageable with all them are quite loyal as long as you keep them happy .
looking forward to be back home.
I am wondering what is your citizenship? Do you travel with American passport or Indian passport? I am raising the question of country of allegiance, not visa requirement.
The second thing I want to know is do you still think it is possible to live "comfortably" with $1000 a month in India in a metro city where reasonably good medical facilities are available? (This includes rent. If you already own a house in India, the situation will be very different.) Medical insurance is still not a common thing in India. Do you know how much it costs say, for a triple bypass open-heart surgery or for each kidney dialysis in India? I know the costs are less in India, but the question is paying from your own pocket versus paid by insurance. I am sure you have medical insurance in America. And I am talking about year 2010 not 30 years ago when cost of living in India was indeed much lower. :)
$10,000 per annum is a good cost estimate for a 55 year old retiree couple-assuming accomodation is owned. This should take care of medical premiums and a comfortable lifestyle. $20,000 per annum will of course be better and pay for travel and holidays too.
The more rational one's spending the less stressful one's life in general. Simple living - High thinking should be the motto.
Today 1 million US$ is a comfortable corpus to retire in India for a couple aged 55+. Assuming investment income that equals or exceds the inflation rate this corpus should cover the couple till age 95+
Start with an investment of 45-50% in equities and balance in debt. By age 70 the equity allocation should be reduced to 20-25%.
Choose 4* and 5* funds at
www.valueresearchonline.com
Try the retirement calculator at
www.worldwidebroker.nl
I stumbled on to this site while researching retirement options in India. I turned 50 today and I get to retire in 5 years without penalty, should I choose to, with a DB plan. I expect to recieve in excess of $10K per month from my DB plan in retirement. When I retire in 5 years, I would have lived in the US for 30 years. I have a home in Kochi and one in Conoor. While the notion of retiring in India is appealing, I wonder what the general experience of people who have taken the plunge been? It is getting to that time when I have to fish or cut bait - Either plan for retirement in India or retire in the US.
Any ideas?
Thomas
An important reason for retiring in India is the innate desire to die on one's home soil. "As we grow old we long for the familiar environs and experiences of our youth"
If India does not beckon the heart then for a US resident it may well be cheaper to retire to some affordable Central American country with affordable medical care. This allows for proximity if one's siblings and kids have settled in the US.
A recent Mckinsey report mentioned that India has not even begun to implement a comprehensive urbanisation plan. So it makes sense to keep away from the big cities but within reach of speedy rail access.
10-20 years down the road India's vast population could become a hard burden if food production and water availability fail to keep up with demand, particularly as incomes increase.
Affordable health insurance, lower cost of health care, reasonable cost of living (depends on your 'level' of comfort/adjustment), your culture, family & friends, etc make favorable retirment in India. Nigel is 100% right that US is good as long as you can work and covered by affordable health insurance, else need to pay high premium with high deductible coverage with out pre-existing conditions! Another aspect that my be holding some Indians in USA is with their children settled in USA, parents would like to be close to children, if not with them. I would agree with Nigel on Retire2India.
People who are not of Indian ancestry, including whites, Chinese descent etc. may find the tourist city Thiruvannamalai in Tamil Nadu very attractive. Easily 5% to 10% of this city are from outside India. There are people from USA, France, probably China and elsewhere living in this place.
People come hear for spiritual reasons- this is the place of Arunachaleswarar Temple, Ramani Maharishi Ashram and Saamiyaar Visiri (Tamil name of Ram Surat Kumar) Aashram But the low cost of living is a major factor. There are new quarters which have been built exclusively for foreign nationals.
Nice blog, Nigel. similar situation here-- considering retiring in India. in Early 40s.
Inflation is a big concern because it is very high in India. How does one invest here in US-- I was looking at annuities to guarantee income for life but seems it does not keep up with inflation. But still, it is worth it. Not allocating entire portfolio in immediate annuities but enough to get $1000 monthly income-- in TODAY's dollars. Assuming at 65, SS income of $500 will supplement.
Assuming one has a paid for home in India, will this be sufficient for basic living costs 30 years down the road? Of course noone can guarantee what inflation will be in the future or the dollar to rupee conversion remaining at at least 40.
I (w/ wife and 2 kids -7year and 3 years) want to early retire to india at 40 years age. I have been to US for 15 years. I have needed money set aside for home purchase in my place where I want to retire. Cost of living there is average of India. I roughly have ~$250k in cash from which I am hoping to get ~15k interest income after tax. I am thinking to do some side work but still I would put money contribution from it insignificant compare to interest income I would get. Also, I have a property in india which can generate ~150$ monthly income and can be used for daily expenses. All this with benefit of living aound with parents and other extended family which we miss everyday. I am not counting on Social security which might provide some benefit ~$500 to $1000 @ age 62.
But if I read some comments, it apears that financially it might not adequate and this scare me to take a decision at this age. Currently health wise we are ok (touch wood). but still the cost for health care is not as high as here. Just to give you a comparision, an ultrasound in US which had cost $1050 is actually <$10 (350Rs) we paid in india.
regards,
I am a non Indian retiree and I lived in India (new Delhi) for 2 1/2 yrs and I loved it there as I was able to travel all over India and more of Asia too. i had rented an apartment in Dwarka 3 bedroom 2 bath for eqivalent $300 mo; I had a 10 yr visa; but visa requirement for tourists were changed so that I could only stay for 6 months and then had to be out for 2 months and this would be ok if planned for this kind of event. Previously I would just be in for a few months and fly in and out whenever I felt like it. Everytime i came in the 6 month rule would begin again but all this was changed with the new visa requirement which made it a bit more inconvenient for exploring Asia that i liked. I could not get a drivers license because I was not a resident. i also had some contact with government offices and was confronted with the corruption and the bribery involved whioh was disconcerting. Medical was very cheap and drs and hospitals in Delhi were first class however I was not able to use my Medicare allowance in the US which i still had to pay for. Unfortunately i had a serious accident in India and was hospitalized and then have had to come back to the US for more treatments. This has become very expensive but because of insurance and medicare I can afford it. I am 67 and do plan to return back to India next year but feel it will just be for part of every year. Of course if you can get a resident visa this would really help and also be able to get a health plan there. when i inquired about this with an agent they were not interested in offering me an insurance plan at my age.
I am 30 lived in Switzerland for 2 years, I am not sure about USA,
For those who left India years ago, you must remember that prices are 10 fold, politicians are supercorrupt, trafic never moves on, injustice is written everywhere you can see, prices are not worth the quality, people would lie to you to get your money. real estate prices are inflated, 1 in every 3 people you meet would be a fraud. So think well.
After researching I think Mysore in Karnatka State is ideal place to retire.
It is close to Banglore and climate is good.Kerala is close which is a nice state.
Hello my name is Sasha and I am US citizen but permanent resident of costa rica, my mom is retired and we want to live our future in India no matter what, we like a very rainy area, near the coast but not too close, maybe in karnataka, south goa, or maybe even north kerala. Anywhere would do, as long as its not too close north near bordering countries and not too close to the southern tip near tamil nadu either. We dont have much money, less than $75,000. we want to live a very simple life away from the city, where there are more local people. and what are the first steps needed to take to start living there? Please help, would be much appreciated.
Hello,
I am writing a feature for the Independent, a national British newspaper.
I am looking for British people who have, or are thinking about retiring to India.
If you know anyone who could fit, and would like to be interviewed, please email me:
samandnas[at]gmail dot com
Many thanks,
Sam
I notice much worry on paucity of retirement portfolio .India is a country, where a retired couple/ you can live with dignity by resorting to disciplened lifestyle according to your means( < $500/month even). Moderate needs /food habits/life style/moderate weather this .
Money brings more comfort/social prestige in west but not so in India.If you find such culture interesting, it is your place to retire.
I have lived in many parts of the world and traveled extensively. Two tier cities in India have reasonable healthcare facilities. Cost of living is not high. In about six months a small circle of friendship develops because Indians like socializing. I moved to India and found with all negatives people talk about, there is no better place for old age. Living with children in the West, is like living in pressure cooker.
There is no help for you, but you are help for everyone, because you are retired.
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