Retiring Abroad Isn’t Just for the Rich Anymore

The United States is growing increasingly expensive — and with the promise of new tariffs by President-Elect Donald Trump, more people than ever are worrying about the state of their financial future. “I’m thinking of moving abroad,” has been a common refrain across the country. More people than ever before are considering becoming expats (people who live abroad). This is especially becoming true for Baby Boomers and people who are preparing for retirement — even though political changes aren’t always at the forefront of their decisions. Retiring abroad is an attractive idea. Many countries offer a more relaxed and beachier lifestyle, more affordability, and even lower taxes. For people who are looking to enjoy the last few decades of their life in a little more opulence than they might have in America, seeking residence somewhere else isn’t a bad idea. (I thought retirement was a pipe dream…until I made these three changes.)

As it stands right now, millions of Americans live overseas, and retirees make up a large portion of that population because they can stretch their retirement savings further. Here, 24/7 Wall St. set out to determine where Americans are flocking to the most for their retirement years. To do so, we’ve checked into sources like the U.S. State Department, Global Citizen Solutions, Immigrant Invest, Condé Nest Traveler, and others. We listed the countries in order based on available current populations of U.S. retirees.

Overseas Retirement: An Option for Everyone

Overseas retirement is not just for the rich.

Retiring outside the United States is not just an option for rich people. In fact, in many cases, it is a way for middle-class people to enjoy a nicer retirement than they could afford if they stayed in the U.S.

Let’s imagine, for example, a couple retiring at 65 with a nest egg of $500,000. The average home price in the U.S. is now over $400,000, so a middle-class couple that otherwise has little savings for retirement might find most of this money in their home equity. Experts say you can withdraw 4% of your nest egg each year to stretch it for 30 years. This would give the couple $20,000 a year, not including Social Security. While this is below the poverty line in the United States, it can provide a reasonably comfortable life in Mexico where the cost of living is nearly 50% lower and healthcare 60% lower than in the United States.

What Should You Consider Before Retiring Abroad?

Flexible, adaptable people with an adventurous spirit do best living overseas.

We get it: packing your bags and heading to a different country — especially one with a nice beach and a low cost of living — might sound great. If you’ve been dealing with any stressors lately, getting away from it all might sound even greater.

But before jumping on the living abroad bandwagon, here are some questions you should consider:

• How often do you want to visit your friends and family back home?
• Are you willing to learn a foreign language?
• What climate agrees with you best?
• What lifestyle changes would you be willing to make?
• Do you have an adventurous nature and like to try new things, or do you prefer what is familiar and comforting?
• Do you have health conditions that will limit where you can live and what medical facilities need to be nearby?
• Are you willing to divest yourself of your possessions and live a more minimalist lifestyle abroad, if your income requires it?
• Will you be able to receive your Social Security payments in the country you have chosen?

Most Popular Overseas Retirement Destinations

Many of the most popular vacation destinations are also popular choices for retirement.

The most popular overseas retirement destinations are also some of the most popular vacation spots. These are some of the world’s most developed economies, offering a standard of living comparable to that in the United States. Some Americans choose to retire there because they have previously vacationed there or have family ties there. Healthcare costs are often less expensive than in the U.S., and when the dollar is strong many other goods and services can be affordable. However, currency fluctuations in such strong economies can erode the value of the dollar and make your retirement more challenging. All of this speaks to the need to invest wisely in the years leading up to your move.

Here are the ten countries that American retirees love to move to:

10. Spain

• U.S. Retirees: 57,112
• Pros: Spain has an affordable cost of living, a beautiful Mediterranean climate, a relaxed culture, and tasty and healthy cuisine. It’s also easy to get settled there, as Spain places few obstacles in the way of foreigners trying to buy property.
• Cons: You’ll need to put time and effort into learning the language. The country has more economic struggles than some of Europe’s stronger economies. If you’re someone who wants things to happen on time and efficiently, you’ll have to adjust to a more relaxed and free-flowing lifestyle.

9. Japan

• U.S. Retirees: 58,340
• Pros: Japan is safe, clean, and friendly. It has a high standard of living and technologically advanced healthcare, which is available to all citizens.
• Cons: Retiring in Japan requires going through a 10-year process to earn citizenship, learning Japanese, and having a minimum income of $32,200 a year.

8. France

France has a global reputation for high culture and romance.

• U.S. Retirees: 61,668
• Pros: France is a technologically advanced, modern country that retains Old World charm and history. Its culture is often associated with prestige, luxury, and romance. Housing can be quite affordable away from the beaten path. Plus, who doesn’t love the chance to enjoy wine, cheese, and baguettes on a budget?
• Cons: The language can be difficult to learn to perfection. Citizens in large tourist areas like Paris can become weary of interaction with foreigners, which means that they’re often less friendly. More recently, France has also faced a wave of violence and terror attacks — though these have not been very deadly.

7. South Korea

South Korea is a friendly, culturally rich place for Americans to retire.

• U.S. Retirees: 68,050
• Pros: South Koreans generally love Americans and interact with them with curiosity, appreciation, and respect. In Asian cultures, older individuals are accorded special honor and respect. About 40,000 American troops are stationed in the country, which can enhance your sense of security living there.
• Cons: The Korean peninsula is one of the most dangerous flashpoints for conflict in the world, with a nuclear-armed North Korea poised to attack the South without warning. The Korean language is also one of the most challenging languages for Americans to learn.

6. Israel

Americans of Jewish heritage may feel a special affinity for retirement in Israel.

• U.S. Retirees: 76,794
• Pros: Israel has an idyllic Mediterranean climate, a first-world standard of living, many English-speaking people, and a special cultural and historical significance for Jewish Americans. The food is delicious and the culture of bartering in markertplaces means you’ll often not spend full price on what you want to buy.
• Cons: The region is prone to terrorism and war and the government is not able to completely protect the security of residents. The Hebrew language is difficult to learn. Right now, there is also a lot of controversy given the conflict between Israel and Gaza. 

5. Australia

Australia is a great retirement destination for active retirees who enjoy the outdoors.

• U.S. Retirees: 116,620
• Pros: Australia has over 10,000 beaches, more than any other country in the world, and 85% of the population lives within 30 miles of the coast. The culture is friendly and laid-back. Americans generally don’t have too much difficulty understanding the Australian accent and find it pleasing to the ear.
• Cons: The country is geographically distant, so it is expensive and time-consuming to fly back and forth. Australia is also infamous for its dangerous snakes, insects, and marine life. The climate can also be extreme, with flooding, droughts, sandstorms, and wildfires.

4. Germany

Germany has one of the strongest economies and highest standards of living in Europe.

• U.S. Retirees: 152,639
• Pros: Germany is rich in culture and history, and has a strong economy and a comprehensive social safety net. It is centrally located and a member of the European Union, so residents can easily visit neighboring countries using the region’s high-speed rail network.
• Cons: The cost of living is quite high. Though many people speak English they can be shy about doing so. It will be necessary to steadily learn and improve in the German language. Americans may find the high taxes, rules, and regulations of Germany oppressive. German people can be more shy and reserved than some Americans, so making friendships may be a slow and gradual process.

3. United Kingdom

The United Kingdom has a rich history as well as a vibrant contemporary culture.

• U.S. Retirees: 170,771
• Pros: You won’t have to learn a foreign language, though you may find some regional accents challenging to understand. The U.K. has a strong economy. Major cities are vibrant centers of international culture. The country is steeped in history and culture. You’ll also enjoy some of the most delicious tea you’ll ever find — multiple times a day, in fact.
• Cons: The social class system can present unspoken barriers to a foreigner trying to form friendships with local people. British politics can be chaotic and include abrupt changes such as Brexit that affect the economy for better or worse. The weather can be abysmal and depressing. Budget for an occasional Mediterranean vacation!

2. Canada

Americans may find life in Canada comparable, but certainly not identical to, life in the States.

• U.S. Retirees: 273,226
• Pros: Canadian culture is similar to that of the United States. 90% of Canadians live within 100 miles of the U.S. border, so it can be an easy drive or short flight to visit folks back in the States. Canadian people are unfailingly courteous and welcoming, so you’re likely to feel at home.
• Cons: Citizens of the U.S. can underestimate the real cultural differences they have with Canadians and can come across as arrogant and insensitive. Some Americans will chafe at the taxation and regulations in Canada that support a more robust social safety net.

1. Mexico

Mexico is affordable and has a wide choice of gorgeous places to live and vacation.

• U.S. Retirees: 799,248
• Pros: Mexico borders the U.S. and is easily accessible by car or plane. Spanish is one of the easier languages for English speakers to learn. The cost of living is about 50% that of the U.S. There are a variety of climate zones in the country to choose from, including tropical, temperate, and arid.
• Cons: Poverty and crime are serious problems, including drug cartel violence. The country is subject to natural disasters like earthquakes and hurricanes. Changing U.S. immigration policies can contribute to refugee problems in border areas.

More Affordable Retirement Destinations

Bangkok illustrates the fusion of traditional and modern, East and West that retirees can enjoy in Thailand.

The countries that have attracted the most American retirees up until now are those with high standards of living and strong economies, as well as places like Mexico where a large number of Americans have family connections. Global Residence Index suggests the following countries that are a little more off the beaten path but might be more affordable for retirees on a limited budget:

• Costa Rica: a peaceful, scenic country known as the “Switzerland of Central America.”
• Belize: the only English-speaking country in Central America. You’ll find tropical rainforests, Mayan ruins, and spectacular diving.
• Thailand: a popular destination for medical tourism with a warm climate, rich cultural heritage, and great beaches.
• Philippines: this former U.S. colony has a large number of English speakers and is a popular retirement destination for retired military.

Perhaps most of all, people considering retiring abroad should remember they are not selecting a place to vacation, but a new home, perhaps for the rest of their lives. Quality of life, climate, culture, and cost of living will all be important considerations to help make this time of your life truly your golden years.