So there are two alternative solutions:
This is for the many folks who have made okay money but are not wealthy or ultra high net worth individuals.
So, in effect America is trying to export its retirees.
This is a small number right now, in the thousands. This solves the problem of healthcare for the old and also helps the older folk’s money go farther.
2. For the immigration problem we have solutions as well.
This is a slightly larger number, 65,000 each year. This solves the problem of new talent for companies and also helps young aspirants get a better shot at a better life.
Every year, America also imports new fresh talent.
Think of this like a balance sheet. Immigration imbalance occurs constantly. Right now America does not export as many retirees as it imports immigrants.
Which is why many folks are up in arms about raising the # of allocated H1B visas to foreign legal immigrants.
The reason we get so many immigrants is because it is attractive to be in America.
The reason many retirees don’t leave is because it is not attractive yet to live outside America.
Why is not so attractive to live outside the United States right now?
First, there’s a standard of living issue – access to quality services is just not as good abroad as it is in America,
Second, there is living away from friends and family, and finally
Third, there’s fear of the unknown.
Most older Americans move to Florida or a state in the south so they can get better weather and pay fewer taxes anyway. So, the living away from family is something they are quite used to and they actually end up making new friends.
If we help some of the countries in the “top places to retire” help to build better services, such as transport, healthcare and support, then they become more attractive.
To solve the fear of the unknown, I think the best solution is to educate older Americans on these countries and their culture, unique offerings, weather, etc.
Finally if we eliminate double taxation for Americans going abroad or “suspend” tax filing and payment when they spend, say, more than 80% of their time in their “retirement” country, then you make retiring abroad, more attractive.
That should increase the number of people leaving annually to say about 50K from the current 5K and help “keep the distribution even in the people import/export balance sheet”.
What do you think?