An AARP survey laid out some hard truths about Americans approaching retirement age.
One-fifth of adults 50 and older have no retirement savings, and more than half (61%) are worried they won’t have enough money to pay the bills in retirement — at least in the United States, which has the 12th-highest cost of living among 146 countries analyzed by Numbeo. To work around the problem, many seniors want to retire overseas, including in Italy.
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The cost of living in Italy offers “significant savings” for American retirees, according to a blog from Green.org. It cited data showing that the cost of living in Italy is about 45% less than in the U.S. and that rent prices in the U.S. are 151% higher than in Italy.
For seniors on a tight budget, expenses across many spending categories are much more manageable in Italy than in the U.S.
Certain Italian cities “offer a unique blend of lifestyle, culture and amenities,” said James Kinsella, a travel expert from TurtleTrip. “With relatively affordable living costs, your retirement can be as active or as laid-back as you wish.”
Here’s why some Americans are choosing to retire in Italy:
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How Long Will Your Nest Egg Last?
No matter where you live in Italy, retirement savings should last much longer there than in other popular overseas destinations. For example, a nest egg of $1 million will likely last more than 56 years in Italy, compared with less than 30 years in pricey destinations like Bermuda, Hong Kong and Switzerland.
Italy also ranks among the top 20 countries with the most generous retirement systems, Business Insider reported. And as Green.org noted, healthcare is “notably less expensive” in Italy, with private healthcare for an elderly couple ranging from 1,500 to 2,800 euros a year, or about $1,620 to $3,020.
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Other Reasons To Retire in Italy
Affordability isn’t the only reason Italy has become a popular retirement destination. The country also has a rich history and culture, vibrant cities, endless natural beauty, and a cuisine that many foodies consider the best in the world.
Here are some other advantages of living in Italy, according to The Local.
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Life expectancy: Italy is known for its healthy lifestyle and ranks as having the sixth-longest life expectancy among European Union countries.
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Tax benefits: Expats retiring in Italy might benefit from a 7% flat tax rate for pensioners. This incentive is geared to seniors who transfer their residency to Italy and whose retirement income is from a foreign source. To get it, you’ll need to transfer your residency to a town in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Apulia with fewer than 20,000 residents. The benefit is available as long as you haven’t lived in Italy within the five previous years and you moved from a country that has a tax agreement with Italy. The incentive lasts for 10 years for retirees.
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Quality of life: Many expats say they enjoy a higher standard of living in Italy than in their home countries. That’s not only because of lower costs but also because of a milder climate, friendly communities, and access to so many cultural and historical landmarks.
Establishing Residency in Italy
There’s a lot you need to know about moving to Italy and setting up residency there. The quick version is that you need to apply for an Italian Elective residence visa if you can rely on passive income to support your living expenses in Italy. This visa requires proof of sufficient income or assets, proof of accommodations in Italy, and health insurance that’s valid across the European Union, Green.org reported.
After meeting certain time requirements and other requisites, you can apply for Italian citizenship. This typically takes between six and 18 months. To learn more about the various options and rules, visit this blog from Arletti & Partners.
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This article originally appeared on GOBankingRates.com: Can’t Retire in the US? Why Many Americans Are Choosing This Country Instead
