Retiring Overseas in Style on Social Security

Many Americans haven't saved enough money for a carefree retirement - here in the United States. But Kathleen Peddicord says those same people could retire comfortably - and with a bit of luxury - on the average $1,200 monthly Social Security check if they ventured overseas.

Peddicord, author of How to Retire Overseas: Everything You Need to Know to Live Well (for Less) Abroad , says there are at least a dozen places to retire in comfort on just that Social Security check alone. "These are safe, friendly and stable places that welcome Americans and have cities with amenities and a support system that the average American is looking for," says Peddicord, 46.

What's more, Americans can afford services overseas that are considered luxuries in the United States. You can hire household help to cook, clean, iron and drive for about $150 to $200 a month, she says. Peddicord knows what she's writing about. A writer, editor and founder of Live and Invest Overseas, she's covered the topic for 25 years. But 12 years ago, she started to live the overseas life firsthand, first moving to Ireland, then France and now Panama.

She's moved pets, given birth, bought and sold real estate, and even renovated a house in foreign countries. "Frankly, the more experience I have, the more I understand that for the average person, (moving overseas) can be really intimidating," she says. ""But it's also a romantic, appealing, adventuresome idea."

Here are three of her top recommendations:

• Cuenca, Ecuador: Retirees come for the low cost of living, thriving expat community and lively entertainment scene that's filled with festivals, theaters and museum events in a Spanish-Andean culture that has changed little through the decades. A single retiree can expect to spend $700 to $800 a month on rent, food, utilities and a basic allowance for transportation, Peddicord says.
  
  
• France:Paris isn't a budget option," Peddicord says, "but in the countryside you can live on a very modest budget." She estimates $1,200 to $1,300 a month. The caveat is the euro/dollar exchange rate. "If the euro is stronger against the dollar, you'll pay more."
  
  
• Thailand and Malaysia: Both are inexpensive places to live--about $800 a month. The downside is that these countries are very far away. "You don't want to move to Malaysia if you want to be there for every event in your grandchildren's lives,' Peddicord says. Also, the culture shock may be greater than inEurope. "It's more exotic for the American to absorb."

Start thinking now about the retirement lifestyle and destination you want. Latin America? Europe? Asia? Where would you be comfortable? And be sure to take scouting trips to get a feel for the area. "Some people know right away if it's right for them," Peddicord says.