Retiring in Mexico: Ten Tips to Ensure a Full and Pleasant Life Transition
All the financial consultants, lifestyle coaches, and psychotherapists can’t really help potential American and Canadian retirees in their 50s and 60s unless they’ve been there, done that. Whether you have your sights set on San Miguel de Allende or Oaxaca, Huatulco or Cancun, the best advice on Mexican retirement comes from those of us who have made the leap…and only after several years of deep, thoughtful introspection. .
Health care, general affordability, language and “now what do I do” seem to top the list of questions those considering becoming an expatriate in Mexico seem to have. With 13 years as a frequent visitor to Oaxaca, and now another 13 years as a transplanted permanent resident of the good life as a Toronto trial attorney, I have been able to reflect on how and why at 53 I did what I did. The answers are now easy. So here are my top ten tips that, if taken into account, will ensure a fulfilling and enjoyable life wherever you choose in Mexico.
1. LEARN THE LANGUAGE: Sure, some of us have language challenges, and such an affliction can certainly get in the way of our plans. But it is imperative that you at least try to learn Spanish and keep doing it until you are no longer ashamed to open your mouth. There are Spanish schools in almost all the important centers of the country. And, it’s easy to find a local who wants to learn or improve their English, so you can arrange an “exchange” once or twice a week, free of charge, to supplement your formal grammar classes. Often the exchange also serves as a starting point to make new (local) friends. In fact, it’s hard not to gravitate towards building friendships primarily with other expats, as that’s the path of least resistance. But surely one of the reasons why you are choosing Mexico is because of the rich and diverse cultural traditions; the best way to establish them is to start with the language. When building relationships with Mexicans, whether they are urban whites or small-town natives whose first language is an indigenous language, or anything in between, any way you can be welcomed into their world will be to your advantage in your quest to be included in their lives. rites. by the way; celebrating weddings, birthdays, baptisms and 15 years, and crying at funerals.
2. BUYING GOVERNMENT HEALTH CARE: In 2017, the annual cost of buying comprehensive health insurance from the federal government known as IMSS (Instituto Mexicano del Seguro Social), was less than 15,000 pesos (well under $1,000 USD) for a couple with at least one partner in their 60s. of age or older. It covers visits to the doctor in case of illness, medication, care and specialized consultation, tests and analysis, surgeries and emergencies. Yes, there are delays, the level of sterility may not be what you are charged with, and you cannot select your own doctor. But you can mix and match if you want, that is, use private doctors, laboratories and hospitals when it suits you, or go with the IMSS. The quality of care is extremely good, not without sometimes having to ask, just like you would at home. The point is that many good doctors are trained in Mexico, and in fact some have had American experience taking courses, improving themselves, etc. in the US You don’t have to worry about maintaining your Canadian coverage by returning to your home province for X days out of the year, or worry about the cost of returning to the US just because you have comprehensive insurance coverage there.
3. VISIT YOUR FINAL DESTINATION AT LEAST THREE TIMES BEFORE DECIDING: It may seem trite, but don’t just read about a Mexican destination and make the decision to move without even having visited it. Some people actually do it that way, believe it or not. My wife and I visited Oaxaca two or three times a year for several years before we purchased our land and building. I suggest at least three viewings before committing to buy or rent. Get the vibe of the city. Research places to live and don’t just decide you want to live in a particular neighborhood without first having a short-term rental there. If you plan to lease or buy, make sure you have an idea of the type of community and think about proximity to public transportation; parking lot; noise level: services such as cable, city water, sewage and garbage collection; type of neighbors; nearby restaurants and entertainment venues; etc etc etc You might like to visit downtown for a week or two, but you should plan on being there permanently, amidst the constant noise, exhaust fumes, street activity that starts before dawn, and all the rest. On the other hand, do you want to be so far from the city center that you have to think twice before going downtown for dinner, drinks or cappuccino?
4. GET A CAR: If you want to live downtown or close to everything, and are used to taxis and/or public transportation, you may not need a car. But you’ll probably want to visit neighboring communities on your own, at your own pace, and you don’t want to depend on others to drive you. Even if it’s an old jalopy, it’s important to be mobile. Of course, car rental agencies offer a good option, but one often thinks twice before spending on a car rental, while if the car is already in the driveway or garage, there is no problem. Although insurance may be optional for vehicle owners, buy it to ensure that if you are in an accident you won’t end up in jail for an extended period of time.
5. DRESS APPROPRIATELY: Dress as the locals around you do. If you live in a city in the interior of Mexico like Puebla or Oaxaca, you will notice that the men normally do not wear shorts, running shoes or t-shirts, except for some weekends, usually Sundays. You’ll be treated more like a resident and less like a tourist, and presumably that’s what you want, with a view to expanding your social networks in due course to include people who were born and raised in and around your new hometown.
6. CONSIDER BOTH YOUR CURRENT AND ANTICIPATED ASSETS: When considering whether you can afford to retire in Mexico, financial advisors ask about your current assets and liabilities, anticipated income and costs when you live in a new southern city or area of beach. They will also ask if you have any dependent children who may depend on you for ongoing expenses, such as college costs. While some people may think it’s disgusting, it’s also important to talk about any anticipated inheritance on the horizon. A couple of decades ago, a newspaper reporter consulted three Canadian financial experts for a story, Mañana Split, about our plan to retire to Oaxaca. They all said we couldn’t afford to do it. Our own advisor asked about probable inheritances, ages of our aging parents, etc., while the other three did not. Our adviser said we could probably afford to retire early, and here we are (although we actually could have done it without inheritances; so the experts who haven’t known us personally for very long were actually wrong).
7. GET INVOLVED IN CHARITABLE EFFORTS: The fact that you’re even considering retiring to Mexico suggests that you’re willing to think outside the box and have interests other than family, friends, and work. Given your personality, then, you will find ways to keep busy in your new life, immersing yourself in cultural activities and finding other innovative ways to keep yourself busy; and maybe even earn a little money. One of the most fulfilling ways to occupy your time is to commit to one or more charities. Virtually every Mexican expat destination has charities that are in desperate need of your time. You have some kind of valuable experience, whether you realize it or not, that will be appreciated. Not only will you feel good about yourself, but you’ll help others in a much more direct way than just donating money to the World Wildlife Fund or the United Way. Witnessing firsthand how your time and/or money is positively impacting others is remarkable.
8. BE LEGAL: Don’t just move to Mexico on your temporary tourist visa and overstay your welcome. Secure a resident visa early on. Do not work without obtaining permission from the immigration department. Confirm with them that you can work in the job you want and ask them what steps you need to take, such as having the employer write to immigration to inform them/request permission to hire you. Do not start a business without a tax identification number and without obtaining immigration permission; once you start, if not before, get an accountant and learn the law about filing tax returns. Living in Mexico is a privilege and not a right. If you break the law, you can end up in jail and be permanently removed from the country. There may be a certain antipathy towards you as a foreigner working in Mexico where there are many people much poorer than you without work or poorly paid. Resentment doesn’t always go away, so the best thing to do is follow the law, have all permits in place, and pay your fair share of taxes.
9. BE ON BOARD WITH YOUR PARTNER: Often a couple is passionate about moving to Mexico and is very excited about the move and the new lifestyle; while the other is only willing to do it or at least try. That can be dangerous. If both partners do not have the same vision for the future, there may be ongoing conflict between the two of you, with your partner but a mere reluctant participant in the new life. You should aim for an easy transition with no regrets, best accomplished with the two of you ad idem from the start.
10. HAVE A CONTINGENCY PLAN / PAD – Although this article is intended to minimize the risks involved in retiring in Mexico, still, at least to some degree, you will inevitably be taking a leap of faith. If you can have a contingency or “what if” plan, so much the better. Can you come back if things don’t work out? It is something to seriously consider before making the decision. It’s the one thing we didn’t really consider before buying those one-way airline tickets, but luckily everything else was thoroughly considered and planned, and we have no regrets.
Good luck!
