Travel or move abroad after retirement?

Pros and cons of traveling or retiring abroad

Unless you're planning a "one-way trip", travel is, by definition, limited in time. You already know that you'll be back in your home country within a few weeks. You could also plan a series of trips, but you'll always come home in between. Immigration, on the other hand, is more like a journey lasting a year or several years at minimum. Some people even move abroad for good. These two projects reflect two very different ways of thinking about life overseas. To make the right choice, it's essential to understand what's really at stake in a travel plan versus relocating.

Family relationships: What's at stake between traveling and moving abroad after retirement

The first question to ask yourself concerns family. Like most workers, you've probably spent more time at the office than with your loved ones. Retirement is precisely the moment to be more present for your family. Of course, they have their own lives and jobs too. But now you have more time to visit them, check in, and play with your grandchildren. Retirement is often described as opening the door to a "second life": a life for yourself, after spending a large part of your existence working, both for yourself and for your family.

However, this "second life" as a retiree also needs to be considered within the family context. This is where the choice between traveling and relocating really matters. One of the first questions to ask is: can you (really) live far from your family? For how long? Don't underestimate how much family matters. Moving to a neighboring country to be closer to loved ones isn't always the right choice, since you often end up seeing each other less than planned, even when living in the same city.

Is an "endless cruise" the best of both worlds?

We've all heard of expat families traveling the world. In recent years, "endless cruises" or "residential cruises" have made a comeback. The adventure is still there, but in a luxury version, with significant savings, according to cruise companies. Already popular among American retirees, endless cruises are gaining ground in Australia and Europe.

Well-known companies like Life at Sea Cruises and The World offer packages tailored to retirees' needs. Villa Vie Residences, also very popular, has even launched a Golden Pass, letting retired residents stay without ever leaving the ship. The company also offers cabins for rent or purchase. Both options are appealing to retirees, who say endless cruising can be more cost-effective than relocating overseas or living in a retirement home. On board, there's no property tax (most retirees have already sold their house) to worry about and no costs tied to owning a property or a car. Retirees only pay for their cabin package, meals, and any extras they choose (sports, shows, and so on).

Endless cruising: An eternal "honeymoon"?

But do endless cruises really combine the best of travel and relocation? Yes, according to industry giants, since they point to the tedious paperwork that comes with relocating overseas. Cruises, on the other hand, offer an "endless honeymoon" experience, letting you focus only on the positive side of travel. The retiree becomes something like an eternal tourist, surrounded by other tourists chasing the same "dream".

Others are more cautious and point to issues like technical problems on board, occasionally fatal incidents, seaworthiness certificates sometimes called into question, and risks in the event of an outbreak. Endless cruising simply isn't suited to every budget or every health condition.

Those who want to dream big while keeping one foot on solid ground may opt for a middle-ground solution: a cruise lasting one or several months, rather than an endless one.

The trick to cutting costs during an endless cruise

If you're on a tighter budget, you can cut costs by choosing a cabin without a porthole and a cruise with no destination and no stops. Some retirees choose this option to save money, but that's not the only reason. On these massive cruise ships, life happens entirely on board. The ship itself becomes the journey. Seniors who have trouble getting around also benefit from onboard facilities designed so they never need to leave the ship.

Spending your retirement years in a motorhome?

If you're very family-oriented, travel has a clear advantage over relocation: you can experience a change of scenery without ever leaving the country, and you're guaranteed to come home. Moreover, you can bring one or more family members. Rather than moving abroad, many retirees are choosing to travel instead. The rising cost of living has led to an unexpected trend: a surge in sales of motorhomes and other "recreational vehicles".

This trend has picked up speed since the global health crisis. For retirees who've taken the plunge, a motorhome is an affordable way to travel without breaking the bank. Rather than moving abroad, they prefer traveling within their own country. More adventurous retirees sometimes extend the experience into a neighboring country (an easier option when their nationality allows visa-free travel).

Reinventing family relationships when retiring abroad 

Since this "second life" as a retiree is on the table, why not live it to the fullest? Retirees who have taken the leap might reason: Why settle for a simple trip when you can live a full-blown adventure abroad? Why keep "making do" with family life when you can finally live for yourself? This mindset doesn't mean these retirees love their families any less. It simply reflects their determination to keep pursuing their dreams.

For many, the plan to live abroad fulfills a long-held dream. Moving to a new country becomes the reward for a lifetime of hard work. Technology now makes it possible to reinvent family relationships. The Sunday family lunch still happens, just over a screen. "Zoom happy hours" are back in fashion. Calls and video chats become more frequent. Paradoxically, distance can actually strengthen family bonds. You share stories of your new life as a retired globetrotter and rediscover your loved ones' lives through your fresh perspective as an expat. You introduce them to your host country's culture through photos and other surprise gifts.

Should you prioritize travel or long-term immigration?

Whether you travel or move abroad, you'll need to plan how to finance your project. Money matters just as much as family considerations. First, make sure your retirement pension will still be paid to you even after an extended trip (say, traveling through several countries in a row).

Next, run the numbers: will your pension actually follow you if you take multiple trips? What about long-term immigration? Once again, each option has its pros and cons. And once again, travel has an obvious advantage: since you'll return home between trips, you don't need to worry about the administrative formalities tied to receiving a pension abroad. This applies to short trips, of course. For this type of travel, you generally don't need to notify your pension fund of your departure. If you move abroad, however, you'll need to inform your pension fund, and possibly request travel authorization. It's also worth planning your move together with your pension fund.

Pension questions naturally lead to broader financial ones. The budget for an international relocation is, of course, much bigger than that of a simple trip (unless you're planning a whole series of trips). Besides your pension, do you have other income sources (rental income, for example)? Some residence permits allow foreign retirees to start a business or work part-time. Do you have such plans? Answering these questions will help you shape your project.

Settling in during retirement is the real challenge 

The real challenge, though, is integration. Retirees on holiday don't need to think about this. They travel for a few weeks and then head home to enjoy their retirement. Retirees living abroad, however, need to consider this from the very start of their new life.

Of course, specialized agencies often promote "expat villages", where communities of foreigners live among themselves while still enjoying the perks of life in their host country (such as tax benefits, stunning scenery, and so on). But is this kind of life, kept apart from locals, really what you're after? While many countries speak out against communities living in isolation, some retirees who've moved abroad are building their new lives around connections with locals (living like a local also helps save money). They also find richness in these exchanges. You might be one of those seizing retirement as a chance to learn a new language (it's never too late to learn). Others prefer to settle in a country where they already speak the language. Either way, the goal is the same: to live like a local.

Settling in a new country brings other challenges too, like the essential paperwork involved (visa, residence permit, health insurance, housing abroad...). Are you ready to take on this sometimes tedious process?

Is it better to start a new life abroad or travel during retirement?

At the end of the day, there's no single right choice, just trade-offs to weigh based on your situation. Your circumstances won't be the same as another retiree's. To help you decide, ask yourself this: do you want to use retirement as a chance to start a new life abroad? Or would you rather use it to travel from time to time? The best choice is the one that fits your vision for retirement. Still, the popularity of both travel and relocation among retirees confirms one thing: far from being a time to slow down, retirement is a fresh start and a chance to finally live your dreams.