Retire in Colombia

"Medellin is a beautiful city, and it is very easy to live here. We can walk to at least 200 places to eat from our apartment. We have access to the metro train or a huge amount of buses that can take us all over the city and all over Colombia. One of my favorite activities is walking Poblado Avenue Sunday mornings. Half of the Avenue is shut down to all motorized traffic. Thousands of people walk, skate, ride bicycles, etc. You wouldn't believe the number of people who walk their dogs - every kind of dog. I pass three different Zumba sessions on that walk," remarked one retiree in Medellin.

"Life in Colombia for retirees is generally very pleasant and active. There is a vibrant expat community in many of the larger cities, like Bogota, and plenty of cultural attractions, such as the Caribbean Coast and the Sierra Nevada Mountains. Retirees have a number of leisure activities to choose from, such as golfing, biking, and seafood. There are plenty of clubs and restaurants where retirees can socialize and enjoy the nightlife. Colombia is also known for its diverse cultural offerings, from its historic colonial cities to modern coastal towns and its incredible biodiversity. With such a wide range of activities and destinations, it's easy to find something to do in Colombia as a retiree," said a retiree who moved to Colombia.

"If you are thinking about it, do it as soon as you can. You do not need nearly as much money as you would need to live in a retirement community in the US," commented one retiree living in Medellin, Colombia.

"To my mind there are many, well known reasons for retiring as an expat in Colombia, but it would be prudent to not overlook some disadvantages that may, sometimes apply.Firstly, whilst your pension incomes when you first arrive in Colombia may make you feel very comfortable in comparison with that you enjoyed in your "home" country. However, beware; this initial advantage may (will?) erode over time. The rates of inflation in your "home" country and Colombia are usually very different so your COP based living costs will increase much faster than your (say) US$ based living costs in the USA. Unfortunately, this differential in inflation rates links directly to your pension incomes which will normally be based on inflation in the USA. Result, your COP living costs are increasing at a faster rate than your pension incomes. In my case, this has been a significant factor over the 20 odd years I have been living in Colombia and my initial "comfort" level has gradually been decimated. Of course, this disadvantage can (will?) be offset by the relative strength of the US$ to the COP, but this can be very variable and, in any event, the US$’s relative strength may be useful in this "costs" context, but it will be prejudicial if you have Colombian tax liabilities arising on your US$ pension incomes.So, the other factor to take into account is your liability to Colombian taxes. If you intend to live in Colombia, the famous 183 day rule on determining where you are deemed a tax resident will apply. This is a very complex and much debated factor which very few people, me included, do not fully understand. What is sure however is that the higher graduated tax rate levels will quickly impact any Colombia tax liabilities. For instance, if you are deemed a resident of Colombia for tax purposes, your USA based incomes will very quickly attain the highest tax rates in Colombia (say 35%) once your USD incomes are converted to COP. You could, very quickly end up being taxed at high rates in Colombia, whereas your equivalent taxes in the USA were nil, or very little. The above is just the darker side of the Pension Rainbow; there are plenty of good factors to add flavor to the overall taste," explained one retiree living in Colombia.

"The question seems simple enough but I doubt if one simple response can cover the multitude of factors that need to be taken into account. However, I have now reached 50 years expatriation in one country, or another, and I believe the following two factors are all important: (A) COVER YOUR REAR. So often, expats relocate convinced "That is it forever", only to discover nostalgia, or other arguments lead them back "home". There is nothing shameful in such a decision, but its possibility would be best attended to by retaining the keys to the doors of a return "home" by NOT investing everything on a forthcoming, "forever expatriation"; but leave something behind, like a property that allows you to retain one foot on the property accession ladder. (B) IT MAY LOOK CHEAP NOW BUT WILL IT STAY LIKE THAT? I retired 23 years ago and was aware my pension incomes would not be uprated at the same rate as inflation. Those 23 years have not only confirmed my original precaution, but demonstrated how much I had underrated this factor; all the more so, when the inflation rates of the source pension incomes, and the country of expatriation are different. Thus, if the average inflation rate in your "home" pension source country is 3% p.a., but the inflation rate in your expat residence is 10% p.a., then you will have to bear a constant decrease in your capacity to control your cost of living, unless the differential between the relative exchange rates can compensate (Which can never be guaranteed)," said one retiree in living in Colombia.

"One idea... I DID discover from the Social Security office is, that IF you are able to keep a US Bank Account & have your SS deposited THERE... you will NOT have to worry about this "Are You Still Alive" document they send out every few years. This was a HUGE concern for me... from reading all the Blogs, I was terrified that I would MISS receiving this document, you only have a month or so to return it & if they don't receive it, YOU'RE DEAD & have fun getting THAT reversed. I guess the last thing I think. I'm thinking that a lot of MY retiring process to Cali, Colombia is easier than the average person in that I have my Colombian husband. I have been able to more easily accomplish things because of our marriage. Good luck & if you decide against Colombia? My advice is to NOT rule out someplace... the rewards are amazing!!," explained a retiree in Cali.

"One of the most challenging aspects of retiring in Colombia is navigating the complicated bureaucratic process of obtaining a resident visa or other work permits. The cost of living in Colombia is also high in comparison to other Latin American countries, and the cost of healthcare services and insurance can be prohibitive for retirees who may have limited income. Additionally, language can be a barrier for some retirees, as Spanish is the primary language spoken in Colombia and proficiency is often necessary in order to take full advantage of the country's services and amenities. Finally, some areas of Colombia have safety concerns, and retirees should consider carefully their options for living in a safe and secure neighborhood and setting," explained one retiree living in Colombia.

"Fresh air, healthy, preservative free food, excellent health care, a warm, happy extended family, low cost of living index, beautiful scenery, a safer environment without so many guns and terrorist events," said one retiree in Medellin.

"Colombia has a well-developed health system that provides a range of health services to the population, including primary care and specialist services. The health system includes a mix of public and private actors, including health-care providers and health-financing entities such as social security and insurance companies. Most Colombians are enrolled in a health insurance plan and receive their primary care services in the top public system known as 'serivicio preferencias' (preferred services). The services are generally good quality, with adequate access to medication and hospital services. Colombia has an increasing number of medical graduates exceeding the number of posts available in both the public and private sectors, thus increasing competition among the providers, and keeping costs relatively low. In addition, many health organizations, public and private, provide programs to educate on health promotion and disease prevention topics as HIV/AIDS, maternal and child health and non-communicable diseases," said a retiree who moved to Colombia.

"Expats in Colombia often join a variety of social, cultural, and athletic activities available locally to make connections and meet people. Examples may include joining Meetup groups, attending language exchange events, enjoying outdoor activities such as cycling and hiking, or taking classes in music and dance. Expats may also get involved in sports teams like soccer, swimming, and fitness classes. Expats can also explore the culture by taking salsa and flamenco dance classes, visiting local cultural events, or joining volunteer activities. Additionally, many expats take advantage of Colombia's vibrant nightlife by checking out live music venues or adding themselves to salsa and bachata dancing groups," said one retiree in living in Colombia.

"Life for expats and digital nomads in Colombia can be incredibly rewarding. Colombia is home to a vibrant culture, a rich landscape, and friendly locals who are eager to show you a good time. The cost of living is much lower than in other parts of the world, making it an ideal destination for those who want to stretch their budgets. There are many opportunities to explore and experience the culture, while enjoying the excellent climate and landscapes. The country also has reliable Internet connections, allowing digital nomads to enjoy their time while remaining productive. Additionally, there are plenty of activities and events to take part in, providing lots of chances to meet new people and make friends," commented one retiree living in Colombia.

"In general, in my opinion, this is a very fine, large Latin city of over four million. Being Latin, families are very strong, work is strong, socializing is very strong and the people of Medellin are some of the nicest you will find worldwide. They welcome expats. This is a very diverse city, thirteen universities, excellent medical facilities, clean, excellent food, water, air (seasonal concerns). Worldwide metropolitan city that is very difficult to beat. You will look long and hard to find a better worldwide city," explained one retiree living in Medellin.

"A person can develop a beautiful life here, however, it will take time and not happen magically .The assets of this city are well worth the investment. Be kind to yourself and patient. Don't believe all you hear. Everyone (expat, other) has their best visa person, you can loose a lot of money on that one. Just because someone has lived here two years, or in four Latin countries, does not mean they are experts, at all. Find the ones who have lived here fifteen years. Listen to what people say, put what they say through your own filter system, use your head, you can do this. You can do this! You will make mistakes, everyone does! It is part of moving abroad. You will have to put some effort into this and give yourself three years in the long term. One has to learn how to live here, the resources are excellent and again, Medellinguru.com is very helpful. It is worth the investment of your time and energy to learn how to do this," said one retiree in Medellin.

"Before retiring in Colombia, expats should research the various options for health care and find out which insurance policies cover them for short-term and long-term care. Another important factor to consider is the preferred location in Colombia, as this would determine the cost of living, expat amenities and the availability of services and activities. It is also important to familiarise oneself with the local culture and understand the local laws and regulations that may affect expats. Lastly, expats should choose the right visa or residency status to ensure they are pension and tax compliant," commented one retiree living in Colombia.

"Near the Stadium (Estadio) there is a huge sports complex with a gigantic swimming pool and comprehensive sports options. The city is in a valley in the Andes mountains. The options for hiking are endless," remarked one retiree in Medellin.

"In Colombia, residents enjoy a variety of recreational facilities, such as parks, beaches, and sports complexes. Parks are a popular destination for families, offering plenty of green space for picnics, outdoor games, and leisurely strolls. Beaches are also a popular destination, with many offering a variety of activities such as swimming, snorkeling, and sunbathing. Sports complexes are also popular, offering a variety of activities such as basketball, tennis, and soccer. Additionally, many cities in Colombia have public pools, which are great for swimming and relaxing," explained one member in Colombia.

"People living in Colombia typically buy groceries and do other shopping at local markets, supermarkets, and convenience stores. Many people also shop online for groceries and other items. Additionally, some people may purchase items from street vendors or small shops," remarked one retiree in Colombia.

"Local stores are littered throughout every neighborhood. They provide both handy shopping for locals and a livelihood for many, so I like to patronize them. When there is something you can't find elsewhere, a large chain grocery/department store called Exito! has a store within walking distance. Lunch is a great meal to eat out, as there are many restaurants that only open for lunch, offer choices as simple as "which meat/fish do you want?" and it is a sit-down meal with soup, a large plate of food, and some fruit juice with the speed and convenience of fast food," explained one member in Medellin.