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Will Living In China A Long Period Of Time Hurt Financially?


Pianote
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I'm 24 and want to stay in China at least 10 years- maybe 20- as I am paying off student loans and just like it here.  But I want to have money For retirement,  401 k, and anything else.  Will living in China 10-20 years hurt me financially?   

Is it realistic to want to stay in China until retirement age? 

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many do, getting your money out is a different story but can be done.

 

Also you may feel very different about China in ten years time. For some it starts to eat at you slowly over time especially when you go back to your own country and see the difference. 

Just see how it goes and think about what you will do in your mid 30's Will your experience help you later on etc

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Secondary to your main question, you could move out savings via cryptocurrency. Tertiary to this is how difficult it is to use cryptos in China now because exchanges were clamped down on by the government.

 

Anyway, I think DavyJones hit the nail squarely on the head.

 

 

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You can move legally earned and taxed money out of China via bank wire transfers. You need to show the bank tax information (school should get this for you) that shows you’ve paid tax on income, then there’s also a form to fill in concerning tax. Finally you bring your contract. 

 

Google the 5 year tax rule for foreigners in China and keep that in mind too. 

 

Otherwise, agree with the above posters. 

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22 hours ago, Pianote said:

I'm 24 and want to stay in China at least 10 years- maybe 20- as I am paying off student loans and just like it here.  But I want to have money For retirement,  401 k, and anything else.  Will living in China 10-20 years hurt me financially?   

Is it realistic to want to stay in China until retirement age? 

 

What are you doing in China exactly? Teaching English?

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What is your earning and savings potential in China vs your earning and savings potential in your home country?

 

How big is the difference on an annual basis?  Multiply that by the years you plan to spend in China, and that's a rough ballpark of how much better or worse off you'd be.

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On 1/10/2018 at 5:33 PM, Pianote said:

retirement,  401 k

random question from a non-US citizen:

can Americans open an account and make payments into Social Security (I understand this is the retirement thing) and 401k while abroad?

Both legally and technically (won't the relevant services want to see you in person at least once?)

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1 hour ago, Pianote said:

Yes, teaching English.

 

Just out of curiosity, is it possible for you to make some kind of "career" out of that in China or will you just be bouncing between various schools? Do you plan for example to take some work in a 3rd tier city and then slowly work your way up to getting a better paycheck in a richer city?

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" . . . can Americans open an account and make payments into Social Security"?

 

Americans overseas who are self-employed must pay Social Security tax. Americans overseas who work as employees are not subject to Social Security tax (except in the relatively rare case the employer is an American company, like a U.S. bank or airline) and cannot make voluntary Social Security tax payments.

 

So salary received by a U.S. citizen as a teacher at a Chinese school is not subject to Social Security tax. But payments for private tutoring are, if more than US$400 in a year.

 

Americans who spend most of their career outside the U.S. should be aware that they need at least 10 years of Social Security tax payments to qualify for Social Security benefits and to get Medicare coverage.

 

(Treaties may change these rules in some countries, but not in China.)

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I don't know if the regulation has been changed, but Chinese nationals could also transfer up to a certain amount (tens of thousands of dollars) per year with nothing required except their ID card. 

 

If you have a Chinese friend you can trust just take them with you to the bank and get them to transfer the money to your overseas account. 

 

I used this method several times with good success. 

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Chinese people can transfer 50k in one year relatively easily. They can also transfer that amount in one go if they want. Easiest way for them is just to use Alipay to do it.

 

As for for a limit on transfers, it may be if you’re earning millions but we can transfer as much as we can show we’ve paid tax on. I’m an International school teacher. 

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