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AARP’s research reveals harsh truths about Americans approaching retirement age.
One-fifth of adults over 50 have no retirement savings, and more than half (61%) worry they won’t have enough money to pay for their retirement, with at least the 12th highest in the US. I am. Cost of living in 146 countries analyzed by Numbeo. To avoid this problem, many older people want to retire abroad, including in Italy.
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The cost of living in Italy represents “significant savings” for American retirees, according to the Green.org blog. It cited data showing that the cost of living in Italy is about 45% lower than in the United States, and that rent prices in the United States are 151% higher than in Italy.
For seniors on a budget, spending across many spending categories is much more manageable in Italy than in the United States.
James Kinsella, travel expert at Turtle Trip, says certain cities in Italy offer a “unique blend of lifestyle, culture and amenities.” “With a relatively affordable cost of living, you can spend your retirement as active or leisurely as you want.”
Here’s why some Americans choose to retire in Italy:
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How long will your nest egg last?
No matter where you live in Italy, your retirement savings will last much longer than in other popular international destinations. For example, a $1 million nest egg is likely to last more than 56 years in Italy, compared to less than 30 years in expensive destinations like Bermuda, Hong Kong, and Switzerland.
Business Insider reports that Italy is among the top 20 countries with the most generous retirement plans. And, as Green.org pointed out, healthcare costs are “significantly lower” in Italy, with private healthcare costs for an elderly couple ranging from 1,500 to 2,800 euros a year, or about $1,620 to $3,020.
Read next: Here’s how much you need to save for a wealthy retirement in America’s biggest cities
Other reasons to retire in Italy
Affordability isn’t the only reason Italy is a popular retirement destination. The country has a rich history and culture, vibrant cities, endless natural beauty, and a cuisine that many foodies consider the best in the world.
According to The Local, other benefits of living in Italy include:
Life expectancy: Italy is known for its healthy lifestyle and has the sixth highest life expectancy among European Union countries.
Tax benefits: Expats retiring in Italy may benefit from a flat tax rate of 7% for pensioners. This incentive is aimed at older people who have moved their residence to Italy and whose retirement income comes from abroad. To obtain this, you must transfer residency to a town with fewer than 20,000 inhabitants in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, or Puglia. This benefit is only available if you have not lived in Italy within the past five years and have moved from a country that has a tax agreement with Italy. Incentives for retirees last for 10 years.
Quality of life: Many expats say they have a higher standard of living in Italy than in their home country. This is not only because of its low costs, but also because of its warm climate, friendly community, and access to so many cultural and historical attractions.
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Establishing the right of residence in Italy
There are many things you need to know in order to immigrate to and reside in Italy. Simply put, if you can cover your living expenses in Italy with passive income, you should apply for an Italian selective residence visa. According to Green.org, the visa requires proof of sufficient income or assets, proof of accommodation in Italy, and health insurance valid throughout the European Union.
After meeting a certain period of time and other requirements, you can apply for Italian citizenship. This typically takes 6 to 18 months. To learn more about the different options and rules, check out this blog from Arletti & Partners.
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This article originally appeared on GOBankingRates.com: Can’t you retire in the US? Why do so many Americans choose this country?
