Is retiring abroad something for you? Important factors to consider now

A growing number of American retirees are choosing to move abroad after leaving the workforce. In fact, the number of beneficiaries collecting Social Security benefits while living abroad increased from about 500,000 in 2016 to 760,000 in 2024.

Granted, not all of these beneficiaries are retirees. The Social Security Administration (SSA) offers benefits to disabled employees and surviving relatives of retirees, as well as to people who have left the labor market at the end of their careers. However, studies also show that the number of Americans who would like to move to another country, with or without retirement, is increasing. US expats often cite several reasons for leaving the states: lower cost of living, higher quality of life and a desire to travel.

Are you thinking about moving abroad when you retire? Before you take the step, think about your goals, resources, and obligations. Here you can read what you should take into account.

Benefits of Retiring in the US

1. Closer to friends and family

The majority of retirees remain in their existing homes or move out of state. For many people, family is an important reason to stay at home, especially when grandchildren are in the picture. Others may stay close to their roots to take advantage of established social networks, which allow them to stay physically and mentally active without making new friends.

2. Maintain professional connections

According to a CNBC survey, only 11% of future retirees say they don’t plan to work at all in retirement. There are many reasons to roll up your sleeves professionally, from eliminating the fear of running out of money to enjoying a career you’ve spent a lifetime building. Either way, staying in the United States can make it easier to stay in touch with your professional network.

3. Enjoying continuity of care and support

You can stay with well-known doctors and hospitals, car mechanics, hair stylists, etc. if you stay where you are. Plus, you don’t have to deal with a language barrier or cultural differences.

Staying in the US also offers a degree of predictability in everything from the infrastructure to the brand of toothpaste available at your local supermarket. In short, you stay in your comfort zone and maintain your normal routine.

Disadvantages of Retiring in the US

1. Rising costs of living

The cost of living in the US is much higher than in many parts of the world. Housing, health care, and prescription drugs cost more in the United States than in many other countries.

Estimates show that a healthy 65-year-old couple retiring in the U.S. in 2024 will need about $330,000 (after taxes) to cover healthcare costs during retirement.

2. Quality of life

Rankings of countries with the best quality of life and happiest populations routinely place the U.S. below countries like Denmark, Switzerland, Canada and Germany. Many of these countries offer socialized medicine, better social safety nets, and less income inequality.

3. Lack of adventure

Not everyone wants life to remain the same. If you are someone who has always wanted to travel and experience new cultures, retirement can be a perfect time to make those dreams come true.

Benefits of retiring abroad

1. Adventure

Retire from the country is undoubtedly an adventure, but it can be more or less depending on your destination. From quiet beaches in Vietnam to hip cities in South America, you can choose a place that suits your comfort level in terms of modern conveniences, access, climate, activities, cuisine, healthcare, culture and customs.

2. Lower cost of living

It is possible to retire comfortably abroad for a fraction of the cost of staying in the US That helps if your budget is limited. (Don’t worry about your social securityalthough. That follows you almost everywhere. The same applies to civil servant benefits.)

3. Access to affordable healthcare

Depending on the country, there are public health care systems that provide good health care for free or at low cost. Private coverage is available in many countries for significantly less than comparable plans in the United States. Medicare does not cover healthcare abroad.

Disadvantages of retiring abroad

1. It’s far from home

Depending on where you’re going, a long, expensive flight could come between you and your friends and family. Think about how often you want to see your connections in the United States and plan trips into your budget.

2. Bureaucracy and paperwork

Retiring in another country means you will need to obtain a long-stay visa and other documentation that will allow you to stay in your new home. Some countries welcome foreign retirees and offer an easy path to residency, but others do not offer retirement visa schemes. Wealth opens doors to many countries through the availability of so-called golden visa programs, but these may be inaccessible to many retirees.

3. You are no longer on vacation

Your piece of paradise may be a great place to visit, but not so great to live there full-time. The goods, services and conveniences you have come to expect may not be readily available, or may not be available at all. Plus, you’ll need to immerse yourself in a new culture and maybe even learn a new language.

Change can be exciting, but it is also a challenge. Make sure you’re ready for a big change.

The bottom line

Retiring abroad can offer adventure, new experiences, a lower cost of living and a higher quality of life. But it’s not for everyone – and it’s not easy.

If you’re considering retiring abroad, start planning early. It can take months or years to create your financial plan and secure the necessary visas and other paperwork.

Also keep in mind that you will have to adapt to a new culture and possibly a new language. Consider making multiple trips to your future destination to get a feel for the transfer you’ll face if you commit.