Is Retiring Abroad Really That Happy? With Atsuhiko Nakata's Return to Japan Making Headlines, Here Are the '8 Realities of Overseas Relocation' Seniors Need to Know!
In July 2026, it made headlines that Atsuhiko Nakata of Oriental Radio and his family returned to Japan after living in Singapore for about five years. The reasons they cited were their children's education and changes in their family's life stage. On the other hand, voices on the internet pointed out the limitations of so-called 'tax-saving migration,' asking, 'Do they go to countries with low tax burdens when their income is high, and return to Japan when it drops?'
While the tax-saving effect may have been a factor, regardless of the truth, this incident highlights the reality that overseas relocation is much harder to 'continue' than it is to 'start'.
And this is not limited to celebrities. I have several acquaintances who have moved abroad; some have succeeded, while others have failed and returned.
'Enjoying a leisurely second life in a country with a low cost of living'—retiring abroad is often spoken of with such ideals. Is the cost of living really that low? In fact, there are areas in Southeast Asia where you can live on one-half to one-third of the cost in Japan, and stories of people living comfortably on just their pension are common.
But is that really the case?
Moreover, it is important to note that the challenges faced by working-age, wealthy individuals like Mr. Nakata are 'completely different from those faced by retirees relying on a pension.' While the Nakata family mainly struggled with 'the exit path for their children's education' (presumably), the issues that weigh heavily on retirement migration are much larger problems directly linked to daily life, such as prices, exchange rates, medical care, living expenses, and taxes.
If you decide to move based only on an idealized image, you may find yourself thinking, 'This isn't what I expected,' a few years later. In this article, using retirement migration to Southeast Asia (Thailand, Malaysia, the Philippines, Vietnam, etc.) as an example, I will organize the realities you must understand before making a decision.
1. Cost of Living: The Pitfall That 'Cheap' Only Applies to Some Things
It is true that the cost of living in Southeast Asia is lower than in Japan. Street food, local transportation, and local rent can be managed for amounts unthinkable in Japan.
However, you must be aware that 'not everything is cheap.' Furthermore, it will not stay cheap forever.
Japanese food products, imports, home appliances, and medical services equivalent to those in Japan—these 'things you want to live comfortably as a Japanese person' are often actually quite expensive. It is cheap if you live the same way as the locals, but if you try to bring your Japanese standard of living with you, your expenses will skyrocket. It is often said that these are 'countries where you can choose your level of living,' but the flip side is that 'comfort costs money.'
Furthermore, Southeast Asian countries are in the midst of economic growth, and 'prices are continuing to rise.' Just because it is 'cheap now' does not mean it will be in 10 years. You moved to keep living expenses down, but rising local prices make life difficult—this risk should always be kept in mind.
2. Exchange Rates: The 'Biggest Risk' of Receiving in Yen and Spending in Local Currency
This may be the biggest pitfall of retirement migration.
Japanese pensions are 'paid in yen.' Moreover, taxes are deducted in Japan. You then send that money abroad and 'live in the local currency.' In other words, your household budget is entirely exposed to exchange rate fluctuations.
For example, if you receive a pension of 200,000 yen per month,
At 95 yen to the dollar → approx. 2,100 dollars
At 110 yen to the dollar → approx. 1,818 dollars
Even with the same 200,000 yen, the amount of money you can spend drops by more than 10% just because the yen weakens.
If the recent trend of a weak yen continues, a situation could arise where the 'pension that was sufficient when you moved' becomes 'completely inadequate' a few years later. A country that should have a low cost of living can turn into an 'expensive country' due to the weak yen. For elderly people living on a fixed income like a pension, this exchange rate risk cannot be ignored.
3. Language: 'Hospitals and Government Offices' Are Bigger Barriers Than Daily Conversation
For sightseeing, broken English or a smartphone translation app is enough to enjoy yourself. However, when it comes to "living" there, it's a different story.
Particularly challenging are "hospitals and administrative procedures".
When you fall ill and need to see a doctor, you must accurately convey your symptoms, understand the doctor's explanation, and make decisions about treatment plans—doing this in a foreign language is not easy, even for young people. The same applies to residency procedures at government offices, banking, real estate contracts, and dealing with problems. Even if you can handle daily conversation, it often doesn't suffice in situations involving technical terminology.
Furthermore, the hurdle of learning a new language increases with age. The language barrier eventually leads to "social isolation." Many people find themselves unable to integrate into the local culture, spending all their time within the Japanese community, and ultimately feeling that "it would have been freer to stay in Japan."
4. Medical Care and Nursing—A Problem That Weighs Heavily in Old Age
In retirement, medical care and nursing are unavoidable. As you get older, your interactions with hospitals increase. That is precisely why the medical environment of your destination is the most important factor to consider.
There are three points you must grasp.
"① Public health insurance cannot be used." For example, Malaysia does not have a universal health insurance system like Japan. For treatment of illness or injury, you must either join a private medical insurance plan or pay the "full cost out-of-pocket." If you move abroad and remove your resident registration in Japan, you are also removed from Japan's National Health Insurance. Even if you return to Japan temporarily to visit a hospital, you cannot use that insurance.
"② Overseas travel insurance and medical insurance have barriers regarding age and pre-existing conditions." While there are overseas travel insurance plans available for those over 70, the premiums increase as you get older. An even bigger barrier is "pre-existing conditions." In reality, if you are currently visiting a hospital, undergoing treatment, or taking medication, you are often refused coverage. Even if you are fine while healthy, you could end up in a situation where you cannot get insurance once you develop a pre-existing condition, forcing you to pay for all medical expenses out-of-pocket.
"③ Quality of medical care and language support." While top-tier private hospitals locally may have good facilities and Japanese-language support, the costs are high. On the other hand, if you choose local medical institutions to keep costs down, you may face concerns regarding language and the standard of care. The reality is that it is quite difficult to find medical care that is "cheap, high-quality, and speaks your language."
5. Living Expenses—Don't Judge Based Only on "Visible Costs"
Finally, there is the total cost of living. While low rent and food costs are often emphasized, the true cost of retiring abroad lies in the parts that aren't immediately apparent.
Commonly overlooked expenses include the following:
"Medical expenses and insurance premiums" (as seen above, a major burden in old age)
"Loss in value due to exchange rate fluctuations" (the cost of a weak yen is a "hidden expense")
"Costs for returning to Japan" (more round trips for family ceremonies or your own medical visits)
"Costs of a dual life" (maintenance fees if you keep your home or bank accounts in Japan)
"Inflation" (which gradually takes its toll year after year)
If you live a frugal lifestyle, it is possible to live on your pension alone. However, when you include comfort, medical care, travel, and trips back to Japan, in many cases, "pension income is not enough." Having a "cushion"—such as savings or investment income—that can withstand fluctuations in exchange rates and prices is a condition for living with peace of mind.
6. Taxes—The Assumption That "Moving Abroad Saves Taxes" Is Dangerous
One thing that is surprisingly often overlooked is taxes. Many people have the image that "if you live abroad, you will be freed from Japanese taxes," but in reality, it is not that simple. For retirement migration, the two things you need to keep in mind are "income tax" and "inheritance tax."
Income Tax: The Possibility of Being Taxed on Pensions in Both Japan and the Local Country
Even if you move abroad and become a "non-resident," "income generated within Japan is subject to taxation in Japan." Pensions are one such example, and in principle, they are subject to withholding tax at the time of payment.
However, if your destination country has a "tax treaty" with Japan and that treaty includes a pension clause, you may be able to receive an exemption from Japanese withholding tax by submitting a "Notification of Tax Treaty." What you should be careful about is that "there are countries, like Thailand, that have tax treaties but no pension clauses, meaning this exemption cannot be used." The treatment depends on the destination. On the other hand, you may also be taxed in your destination country. Many countries consider you a "resident" if you stay there for 183 days or more per year (180 days in some countries), and residents are subject to income tax. For example, in Thailand, there is a rule where if you become a resident, you may be taxed if you bring foreign-sourced income into the country. Double taxation is adjusted through tax treaties or foreign tax credits, but "the procedures are complicated and you must manage them yourself." Furthermore, payment slips for things like Japan's fixed asset tax will not be delivered overseas. If you leave real estate or other assets in Japan, you must appoint a "tax agent."
Inheritance Tax: The "10-Year" Threshold
Overseas migration is sometimes discussed as an inheritance strategy for the wealthy, but you should also understand the mechanism when considering retirement migration.
The key is the "10-year rule." It used to be 5 years, but it was extended to 10 years in the 2017 revision. Roughly speaking,
"Both the decedent (the person leaving the assets) and the heir (the person receiving them) have lived outside of Japan for more than 10 years." In addition, "the assets must also be located outside of Japan." Only when both of these are met are foreign assets excluded from Japanese inheritance tax.
If either party lives in Japan, in principle, "all assets worldwide" are subject to Japanese inheritance tax.
"Real estate and deposits located within Japan are subject to taxation regardless of where you live."
In other words, the understanding that "if you move, you won't have to pay inheritance tax" is incorrect. If you intend to save on taxes, you would need to continue living abroad as a family for over 10 years and move your Japanese assets abroad, which is a case that rarely fits the reality of retirement migration. Moreover, when moving Japanese assets overseas, there is another barrier called the "exit tax" (income tax on unrealized gains), which applies to people who hold 100 million yen or more in securities and other assets.
The tax system is complex, frequently revised, and the treatment varies by destination country. Please consider it essential to consult with an expert (a tax accountant specializing in international taxation) if you are thinking about retirement migration from the perspective of "tax savings."
7. End-of-Life Planning: The Most Important Question of "Where and How to Spend Your Final Moments"
When talking about retirement migration, the perspective of "end-of-life planning" is the most overlooked, yet the most essential. People tend to focus on "starting" the move, but retirement migration should fundamentally include thinking about "how to end your life."
Whether you decide to spend your final moments locally or wish for your family or funeral to be in Japan, there are realities you cannot avoid.
"1. Dying abroad places a heavy burden on your family." If you pass away at your destination, the local police or hospital will contact the Ministry of Foreign Affairs via the diplomatic mission (embassy/consulate), and then the message will reach your family in Japan. The bereaved family will need to gather the necessary documents and head to the location, but as a rule, "they must arrange their own flights and accommodation." Procedures vary by country, and they will have to deal with foreign-language documents in an unfamiliar land.
"2. Returning remains to Japan is expensive and time-consuming." If you do not cremate locally and instead transport the body to Japan, it must be embalmed and then air-freighted, with "costs estimated at roughly 1 to 1.5 million yen." If the death certificate is in a foreign language, a Japanese translation must also be attached. The wish to "be buried in a Japanese grave" also comes with corresponding costs and effort to realize.
"3. Inheritance procedures become complex across borders." If you pass away leaving real estate or savings abroad, the investigation and procedures for those assets must be carried out "in accordance with local laws." Depending on the country, the laws of the location of the real estate may apply, and procedures separate from Japanese inheritance will arise. Living abroad also causes unexpected trouble with Japanese procedures, such as the fact that overseas addresses are not recorded on family register supplements or resident records. It is not at all rare for the surviving family to be chased by inheritance processing in two countries with different languages and systems.
To reduce these burdens, preparation while you are still healthy is indispensable. Specifically,
Clearly state your wishes regarding the place of your final moments, funeral arrangements, and the handling of your remains in an "ending note or will."
Create a list of your assets (in Japan and locally) so that your family can keep track of them.
Appoint a 'tax agent or contact person' in Japan.
Establish connections with 'local Japanese communities or diplomatic missions' to ensure you have someone to consult in case of an emergency.
It is not just about 'moving while you are healthy,' but whether you can specifically imagine 'what happens when you can no longer move' or 'when the end comes.' Only when you can envision that far does retiring abroad become a realistic option.
8. 'When Left Alone'—The Biggest Blind Spot of Moving Abroad as a Couple
Retiring abroad often begins as a couple. When there are two of you, you can support each other even if you are not fluent in the language. If one person falls ill, the other can accompany them. The sense of loneliness is also halved. That is why it works—that is the reality of moving abroad as a couple.
However, there is a major blind spot here: 'It is almost never the case that two people end their lives at the same time.' One will pass away first, and the other will be 'left alone.' How much have you faced this reality before deciding to move?
When left alone, all the risks we have looked at so far 'will suddenly weigh heavily on you all at once.'
1. The barriers of language and procedures remain for both people: The person left behind will have to shoulder everything that their spouse previously handled—hospitals, banks, government matters, and contracts. 'My husband was good at languages,' or 'My wife handled the local social interactions.' That division of labor collapses the moment you lose one person. Moreover, this happens at the time when your energy is at its lowest, right after losing your spouse.
2. Isolation can be life-threatening: When you are alone in a foreign country with few people to rely on, isolation deepens rapidly. There is no one to talk to, and no one to notice if your health changes. Living alone as an elderly person is difficult even in Japan, but in a foreign country where you don't speak the language, that risk is multiplied many times over.
3. There are times when you 'cannot return to Japan even if you want to': Even if the person left behind thinks, 'I want to go back to Japan,' by that time, they may have given up their home in Japan, their personal connections may have faded, and their physical and mental health may have declined, making 'the return itself a huge burden.' The hurdle of returning, which was low at the age you moved, can become an insurmountable wall 10 or 20 years later—this is entirely possible.
That is why there are things you must discuss as a couple before deciding to move.
Decide in advance on the criteria for 'whether to stay locally or return to Japan if one of you is left alone.'
Ensure that 'the person left behind can handle procedures and daily life on their own' (both should be able to handle language, driving, and financial management at a minimum).
Do not completely let go of your 'place to return to' in Japan (keep your home, relationships with family, and administrative ties).
Share roles with your children or relatives for 'what to do in an emergency.'
Behind the 'having fun as a couple' is the question of 'what to do if I am left alone.' If you and your spouse haven't answered this question, it might still be too early to move. Conversely, if you are a couple who has discussed that much, you should have few regrets regardless of the choice you make.
Still, those for whom moving abroad leads to happiness and those for whom it does not
I have laid out some harsh realities here, but I do not mean to deny the idea of moving abroad itself. In fact, there are many people who are living a rich second life locally.
'These are the types of people who are more likely to find happiness.'
Having more than enough assets beyond your pension to absorb fluctuations in exchange rates and prices
Being in good health, with little concern about obtaining insurance due to pre-existing conditions
Having a personality that can "enjoy" language learning and adapting to a different culture
Being able to build friends, a community, and a reliable network locally
Keeping the option to "return to Japan if it doesn't work out"
Having considered where you will spend your final days and shared that with your family
Being prepared as a couple so that life can continue even if one of you is left alone
Conversely, it is dangerous to burn your bridges and move abroad just because "it's cheaper than Japan." Prices, exchange rates, and medical costs are factors you cannot control yourself.
Summary
While retiring abroad is often discussed in terms of "longing," it comes with realities that cannot be ignored: "prices, exchange rates, language, medical care, living expenses, and taxes."
What is important is not an idealized image, but examining these realities one by one by applying concrete numbers to your own situation. If possible, rather than aiming for permanent residency right away, try "living" there first with a long-term stay of several months. That might be the shortest path to avoiding regrets.
The return of the Nakata family mentioned at the beginning—Nakata is still young, and from another perspective, it may have been a flexible decision that "if it doesn't fit, we'll go back." Being able to calmly choose whether to continue or return is far more important than starting the move.
Moving abroad is a means, not a goal. When you think backward from "how to live happily" rather than "where to live," is the answer abroad, or is it in Japan? Why not take a careful look at that first? I have also had times when I considered moving abroad, but thinking about it again, there are really many hurdles... There are many options, such as living abroad, living in the countryside, or living in the city, but you need to carefully compare them with your own lifestyle and assets before making a decision.
Satoshi Umeki
Born in Oita City, Oita Prefecture, in 1978. Started his career at the age of 20 with a clear vision: "First training, then becoming an entrepreneur." Starting in the corporate planning office of Honma Golf, he moved to the president's office and human resources division of Hikari Tsushin. He spent about seven and a half years honing his skills on the front lines of management and served as an auditor for multiple companies. Later, he became a director and head of the administration division at Hasegawa Holdings, where he worked as a practitioner of financial strategy, leading the procurement of approximately 9 billion yen through bank loans and third-party allotment of shares. Subsequently, he served as head of sales and marketing at Ligua (now listed on the Tokyo Stock Exchange Growth Market), contributing to the company's listing. He has also handled turnarounds for 10 companies.
In June 2022, he established AXIA and became independent. Currently, he provides a wide range of consulting services, including financial strategy and fundraising, building systems for sales improvement, organizational development and hierarchical training, marketing, and business model design. He supports a wide range of clients, including those in the defense, medical, retail, and IT sectors. He has given seminars to 8,000 to 10,000 people annually, with a cumulative total of approximately 50,000 attendees.
With the motto "It's not what you do, but who you do it with" and "24/7 business," he continues to run at full speed today to achieve both corporate growth and the resolution of social issues.
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