Former Baltimorean Kathleen Peddicord, pictured here outside the Louvre at her new home base in Paris, divides her time between France and Panama. Peddicord has been writing about traveling, living and retiring overseas for more than 30 years. Photo courtesy of Kathleen Peddicord

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[The following is an excerpt from the just-published book, At Home Abroad: Retire Big on Little, by former Baltimorean Kathleen Peddicord.]

Traditionally, retirement has been about withdrawing from the rest of the world and a formerly busy life. I’ve never understood why anyone would want to do that. After decades of working hard, paying taxes, raising kids, and deferring what you wanted to do because you had no choice but to spend your time doing what you had to do, this phase — no matter at what age you’re fortunate enough to embrace it — is your chance to be more engaged than ever in the world, in life and in the pursuit of happiness.

Retirement is an opportunity to think big and act boldly, a chance to broaden your perspective and your world, to leverage your decades of experience to take control of your future. Retirement is your chance to add a dose of swagger to your lifestyle.

As you prepare for this critical juncture, don’t let geography get in the way. Looking beyond your borders is the key to ensuring yourself the richest retirement possible.

I made my first international move from Baltimore, Maryland, to Waterford, Ireland, with the support of my longtime employer. He sent me off to establish an EU base for his publishing firm.

When I left Baltimore bound for a job in Ireland in 1998, I had no idea where that move would lead. No idea that seven years later I would swap Waterford for Paris…then, four years after that, Paris for Panama City. Had I tried to plan for the long term, I might never have left Maryland. Looking too far into the future can be overwhelming.

Taking the all-important first step requires a leap of faith.

Whatever nest egg you’ve got — shoestring or luxe — that budget will buy you a more engaging, more satisfying, and more adventure-filled lifestyle in many, many places around the world than wherever you’re moving from.

Retiring overseas equals retiring up. A Pacific beach home in Panama costs a fraction as much as one on the coast of California, and a penthouse in Medellín, Colombia, one of the most fully appointed cities in the world, can cost less than a single-story duplex outside Des Moines.

Meeting new people

Another concern for people considering an overseas move is whether they’ll find like-minded friends, a welcoming community, and, in some cases, love.

One of the most unexpected and welcome surprises for many senior expats is the discovery that in their adopted country, their age earns them a level of respect not found back home. Western culture places a higher value on youth than most other cultures. The overall trend in elderly care in the United States has most older folks removed from society at a certain point. This is not how things operate elsewhere.

Other cultures, particularly in Asia, have traditions of treating older people with more consideration. Seniors are recognized for the unique contributions they can make to society at this stage.

As an older woman living overseas, you might find yourself on the receiving end of acts of chivalry such as having the door held open for you. Some Americans may view this as a form of sexism, but in many cultures it’s a sincere form of courtesy and respect.

The family is still the center of society across many Latin American, Asian, and European cultures, and older people are visible participants in that society. Communities across Portugal provide programs for seniors at schools, libraries, plazas, churches and civic centers. In Spain, it’s common to see groups of elegantly dressed elderly ladies socializing over drinks in the town plaza.

And in Vietnam you’ll see groups of seniors gathering for exercise and dance classes in local parks. Such activities are a great way for seniors, especially single seniors, to make connections.

Health Insurance

The next important practical issue you should address early in your retire-overseas planning is health insurance. You have four options: an international policy, a local policy, a travel policy, or no policy at all.

The final option can be more reasonable than it may seem. In some places — Thailand, for example — medical care is so affordable that it can make sense to pay for it as you need it rather than insuring against it.

Local insurance is cheap but limited in its coverage. International insurance is more expensive — though less expensive than comparable coverage in the United States — and can cover you anywhere you roam.

One of the main advantages of an international health insurance policy is that it can cover you under all circumstances anywhere in the world, making it a good option if you plan to move around among two or three countries. It’s also perfect if you intend to divide your time between your chosen overseas haven and the United States, because it can be possible to purchase an international health policy that will also cover you when you return or pass through Stateside.

This is the kind of coverage my husband and I carry through Azimuth. Our policy covers us anywhere in the world, including in the United States. It’s a relative bargain at $400 or $500 a month or less. Local medical insurance is even more affordable. Coverage can cost less than $100 a month. In some countries, depending on your age, it can cost less than $50 a month.

However, local insurance providers accept new policyholders only through a certain age that is typically younger than the cutoff age for an international policy. You should speak with an expert to decide what makes most sense for you.

Take a test spin

So don’t sell your home. Keep your car if you like it. Lock the lawn mower in the garage. Pack a few bags and head off to some place that’s got your attention for a month or two. Don’t even think about buying a house or anything else. Rent small and modest or arrange an extended stay in a B&B or guesthouse. Keep it low-key and low pressure.

Because this doesn’t have to be like jumping off a cliff; you can ease into the idea. Then, if you find the place you take for a test spin disappointing in some way, you can return home (remember, your car’s waiting for you in the driveway) and begin planning your next “go-overseas” holiday. Give someplace else a chance.

You could continue like this for years. You’d be enjoying some of the benefits of a new life in a new country (maybe a dramatically reduced cost of living, better weather, cheaper medical care, new friends, grand adventures, plus little luxuries you probably can’t afford now like full-time household help), but you’d have a safety net.

What you’ll find is that with each go-overseas foray your confidence will build and your plan will evolve.

You could begin renting out your place back home when you’re not using it. This income would help to subsidize the expense of your adventures abroad. You could, eventually, invest in new digs in a place you decide you like well enough to want to return to regularly.

Take it one step at a time and let your retire-overseas plan develop organically. Just as there’s no one-size-fits-all overseas haven, neither is there a go-overseas plan that suits everyone.

Retired overseas, you’ll become a better you. Everything and everyone will be different. Every day will present discovery. Your brain will work overtime to connect new dots and create new routines. You will grow more resourceful, more self-assured, and quicker on your feet in real time. Six months after you’ve made your move, you might not recognize yourself.

Excerpted from At Home Abroad: Retire Big on Little. Reprinted with permission. Note: Other chapters of Peddicord’s book address practical issues such as paying taxes, shipping your belongings, pets and more.

Kathleen Peddicord is co-owner of Live and Invest Overseas. She wrote her first book on retiring abroad at the age of 24 and has spent time in 75 countries since then. She divides her time between Paris and Los Islotes, Panama.