Determining The Best Time To Retire In Palau

By Jackson M. Henry —-

After investing years working or operating a business, there comes a time when you need to hang up your shoes and enjoy your golden years in life. Your golden years should be stress and struggle free so you can sail into the sunset of your life in joy and with a deep sense of contentment that you have lived a full and satisfying life.

But deciding when to retire in Palau can be a mind numbing question because of the financial, cultural and personal issues that sprout up. So when a person passes that magic 60 years of age or 30 years in the government, plundering your Pension Fund and Social Security benefits may not be the compelling reason. In the USA, delaying the start of SS benefits can mean 8% gain each year because it is inflation adjusted and offers unmatched spousal benefits. However, this may not be the case in Palau.

Because Palauan cultural obligations now heavily depends on cash, not to mention the mounting cost of living in Palau, the first question is; do you have enough nest eggs or positive cash flow to stop the earning from your present job or business? If not, then it is suggested that you payoff all those personal loans and other debts to lighten up your financial burden. I have always advised my clients to retire without any mortgage left on your house.

Second is to be sure you have some means to handle health expenses. Medical costs can be the biggest concerns for advancing ages during retirement. An insurance policy or even $25,000 in savings is a must if you encounter a catastrophic medical situation. Without a “safety net” in place, traumatic health issues can bankrupt you during your golden years. I know of a buddy from Guam who suffered a heart attack but, thanks to his insurance policy, he was medevaced to Manila and now lives a normal and healthy life.

Third is knowing what to do with all those leisure time when you call it quits. If you do not have plans to occupy your free time with meaningful or enjoyable pursuits, you may end up a couch potato or a regular at the coffee shop around town gossiping or politicking day in and day out.

Fourth, make sure you consult your significant other before making that life changing move to retire. If your wife disagrees on your transition to retire, you may have emotional baggage to deal with at home. Retirement is all about being happy and free of stress.

Fifth, get rid of bad and unhealthy hobbits before you retire. Many elder Palauans still chew tobacco and drink beyond their body’s tolerance. These hobbits not only tax your fixed income but take a toll on your health. Do not spend your golden years on a hospital bed but perhaps on the rock islands beach fishing and soaking up the beauty of Palau.

Retiring in Palau can be analogous to a Utopian dream that many retirees who live in large cities can only dream of. There is plenty of fish for the avid fishermen, fresh air everyday, cool weather all year long and beautiful sunsets in the evening for the romantic and nature lovers. So retiring here does not have to be rocket science. Just make sure that you spend below your earnings, do not co-sign loans for anyone, do not donate big money during funerals just to get two minutes of fame, and do not carrying large loans into your golden years.

Life is not all work. Pass on the torch to the best the next generation of Palauans and turn your golden years into fun filled blissful holidays.

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