If you love to travel, retirement may not just be a case of when, but also where. At least five million American retirees are currently living abroad.
However, an idea gaining steam as of late is retiring abroad at an all-inclusive resort. The idea is not that far-fetched: All-inclusive resorts offer a lifestyle where convenience meets luxury, and where retirees can get a full vacation experience as well as many basic amenities for one price.
Let’s break the idea of retiring to an all-inclusive resort down.
The All-Inclusive Resort Retirement: What Can You Expect?
Retiring at an all-inclusive resort could mean you’ll never have to cook or clean again, as all your meals and housekeeping will be rolled into your rate.
Activities and amenities like pools, spas, and gyms might also be included. Best of all, these resorts tend to be located in stunning locations, so you’ll feel like you’re on vacation every day. While retirement homes focus on providing medical care and support, resorts lean more into relaxation, recreation, and luxury.
While each resort is different, most all-inclusive resorts will include:
- Lodging, including utilities like water and electric
- All drinks and meals
- Access to internet, cable TV, and an on-site gym or fitness center
- Housekeeping services and or/ basic laundry access
- Access to various recreational activities, such as water sports, fitness classes, and cultural excursions
- On-site amenities like swimming pools, spas, and golf courses
- Community events and social gatherings
Popular Destinations For Resort Retirement
While many think of the Caribbean when they think of all-inclusive resorts, there are all-inclusive resorts all around the world, from ranches in the mountains to properties in ski resorts high above sea level. Which one you pick depends on your interests, though some of the most popular destinations with the best rates are in the Caribbean, Mexico, and Central America.
Long-Term Stay Policies
Many all-inclusive resorts allow you to stay for around 30 to 45 days. Such long-term stays may receive discounted rates, but it’s not guaranteed. You may, however, be able to work out a custom rate agreement with the resort if you plan to stay several weeks and they allow this.
However, keep in mind that this means that you’ll have to move around between resorts. A good idea is to settle somewhere with a high density of all-inclusive properties so that you can easily move around between them.
Cost Breakdown: All-inclusive Resort vs. Retirement Home
One of the main considerations when thinking about retiring at an all-inclusive resort is the cost. While it may seem like a dream come true, the level of luxury may cost you since the expenses can quickly add up.
It all depends on the resort you choose, the included amenities, and your location. For example, the Allegro Resort in Cozumel, Mexico, starts at just $113 per night for an all-inclusive stay. There are five restaurants and bars on the property as well as several pools and activities, wellness services, laundry service, and more. A 30-day stay in a Superior Premium Level Room will cost you $5,287.
Meanwhile, the Sandos Finisterra Resort in Los Cabos, located on a clifftop with panoramic ocean views, a spa, restaurants, and activities, would cost you at least $13,000 for 30 days.
"Retiring in Brazil has enabled many U.S. citizens to enjoy a lifestyle they could not back home. The cost of living is substantially lower, and the retirement check will go further in such countries. Additionally, living in Brazil may feel like you are in a resort given how friendly people are and the options of leisure," says Luciano Oliveira, managing partner of Oliveira Lawyers, a U.S. law firm with offices in Dallas and Los Angeles.
Hotel Marsol Beach Resort in Rio Grande do Norte is an all-inclusive beachfront resort that offers apartment and luxury suite accommodations. This resort offers several restaurants, Wi-Fi, a fitness center, laundry services, and more. A 30-day stay in a luxury apartment with a balcony and hot tub is only around $3,001.31.
Staying at one of these resorts would eliminate a lot of your monthly expenses, but you’ll still need a budget for things like:
- Food and activities off the resort
- Transportation when you need to leave the resort
- Medical/healthcare costs
- Phone plan
- Any subscriptions or memberships
- Discretionary spending
Now let’s compare this to living in a traditional retirement home where costs equally vary depending on your location, personal needs, and amenities included.
According to AssistedLiving.org, living in an independent retirement community can cost anywhere from $1,500 to $4,000 per month, while an assisted living facility can cost anywhere from $3,500 to $10,500 per month.
What may give retirement homes a leg up against all-inclusive resorts is that they usually include access to medical care, transportation, and support for daily living. If you anticipate needing these services, you'll need to factor in the cost of healthcare or extra assistance at a resort to your retirement budget as well.
Legal and Financial Considerations of Retiring Abroad
Retiring at an all-inclusive resort in a foreign country comes with its own set of legal and financial considerations. Before making any decisions, it's wise to consult with experts who can help you navigate the implications.
One of the first things to consider is your visa status. Each country has its own rules regarding long-term stays, and you may need to apply for a special retirement visa. These visas often require proof of income or savings to ensure you can support yourself without working.
Health insurance is another major consideration. Medicare won’t cover you overseas, so you’ll need to explore private insurance options or the local healthcare system in your chosen destination.
“While some resorts in popular retirement destinations may have on-site medical facilities, retirees would need to ensure they have adequate health insurance and access to hospitals or specialized care,” says Duncan Greenfield-Turk, CEO of Global Travel Moments.
He also warns against inflation and changing resort policies throughout your retired years.
“Resort prices and policies may change over time, and a sudden price hike or policy shift could make it unsustainable to live there long-term,” says Greenfield-Turk.
Finally, you’ll need to consider the tax implications of living abroad. The U.S. requires Americans who retire in another country to file a U.S. tax return and the country you reside in may require you to file taxes there as well. Seeking advice from a tax professional can help you avoid any unpleasant surprises.
Pros and Cons of Resort Retirement
Like any retirement plan, retiring at an all-inclusive resort has its pros and cons. Here's a balanced view to help you make an informed decision.
Pros:
- All-inclusive amenities: One of the most significant advantages of resort retirement is that many of your basic living needs are covered in the room rate. This includes lodging, food, utilities, and often also entertainment.
- Exotic locations: You could spend your days in a tropical paradise or a serene mountain retreat.
- Activities: Whether you're interested in water sports, yoga, or cultural excursions, there's always something to do.
- Flexibility: You don’t have to make a long-term commitment with this retirement option, and you can change resorts or even countries as you please.
Cons:
- Limited medical care: Resorts are not equipped to handle long-term medical needs. You may need to pay out-of-pocket for additional healthcare or move to a retirement facility later.
- Visa and residency hurdles: Retiring abroad can involve complex financial and legal requirements when it comes to getting your visa and understanding the specific tax implications in that country.
- Lack of community support: Unlike retirement homes or your hometown, resorts don’t typically offer the built-in social and support structures that retirees may need, although you may still meet like-minded people.
- Limited personal items: Since the resort provides basic amenities, furniture, and supplies, you won’t need to bring a ton of your own items. However, limited space and possibly moving around frequently also mean that you probably won’t want to bring too many personal items. You may have to consider the added cost of a storage unit back home or nearby.
The Bottom Line
Retiring at an all-inclusive resort may or may not save you money. You’ll need to run the numbers, but it can be ideal for the right type of person. If you’re looking for a change of scenery and you love traveling and participating in a range of activities, this could be a solid option for your golden years. Also, since everything is included in one cost and there shouldn't be any surprises to contend with, it allows for easy budgeting as you can map out your personal finances ahead of time without much fluctuation.
However, if you value being close to family and having access to familiar healthcare services, it might not be the best choice. Alternatively, you could consider a hybrid approach. Spend part of the year at an all-inclusive resort and the rest of the time at home. This way, you get the best of both worlds — adventure and stability. Ultimately, the key to a fulfilling retirement is finding a plan that aligns with your goals and lifestyle.