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.
Related posts:
21 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.
Post a Comment