This year, a record number of Americans are turning 65, and many are looking to retire in other countries. For these former U.S. residents, also known as “expats,” moving abroad seems like a great way to escape the high costs of living and healthcare in the United States. However, retiring abroad isn’t all sunshine and rainbows; there are challenges to consider.
A New Life by the Beach
Take Jeff Natale, for example. At 68, he’s living his best life in Playa del Carmen, Mexico. After years of enduring harsh winters in New York and New Jersey, Jeff wanted a warm, sunny place to call home. He dreamed of returning to Mexico after a high school trip sparked his love for the culture and relaxed lifestyle.
In 2014, he bought a condo in Playa del Carmen, and after five years of planning, he finally made the move in 2019, arriving with just five suitcases and his pet parrot. Jeff is now enjoying life in a vibrant town filled with diverse people, delicious food, and a community atmosphere.
Popular Destinations for Expats
Many Americans are following in Jeff’s footsteps, with countries like Mexico, Panama, Colombia, Brazil, Spain, the Philippines, and Thailand being popular choices. These locations offer lower living costs and a more relaxed pace of life. The number of Americans collecting Social Security while living abroad has risen sharply over the years. In 2008, around 306,000 retirees were doing this, and by 2021, that number had jumped to over 443,000.
The Appeal of Affordable Healthcare
One of the biggest draws for retirees is affordable healthcare. Jeff has found that medical services in Mexico are reasonably priced, especially compared to the U.S. For example, an emergency room visit can cost as little as $6! While public healthcare is cheaper, many expats prefer private healthcare for quicker service and better facilities.
In places like Mexico, expats can access good medical care without breaking the bank. With around 1.4 million Americans traveling abroad for healthcare by 2017, it’s clear that many are seeking better options.
Why People Are Leaving the U.S.
For some, the decision to retire abroad stems from dissatisfaction with life in the U.S. Mike Jansen, who has spent 15 years in the Philippines, cites unhappiness with politics and how veterans are treated as reasons for his move. He enjoys a lower cost of living and a supportive community in his new home.
Retiring abroad is also becoming increasingly attractive due to financial pressures. A study found that about 47 million households with older adults are struggling financially. Many retirees fear they won’t have enough money to last through retirement, prompting them to look for more affordable lifestyles elsewhere.
Planning for the Move
While retiring abroad has its perks, it also comes with challenges. Expats must learn to navigate different legal systems and understand local customs. Financial advisor Michael Hurckes emphasizes the importance of proper planning, including residency requirements and tax obligations. Many retirees choose to move for favorable tax laws and better estate planning options.
Overcoming Obstacles
For Jeff, adjusting to life in Mexico wasn’t always easy. He faced challenges like learning the language, being away from family, and dealing with local bureaucracy. Getting his pet parrot into Mexico took nearly a year, and he even faced the risk of being sent back upon arrival. Yet, he persevered and has since fully embraced his new life.
A New Home, A New Beginning
Now, Jeff feels at home in Mexico. He shops locally, enjoys the culture, and has built a strong community around him. Similarly, Mike Jansen is happy in the Philippines and hopes to stay there forever.
More Americans are finding their dream retirements abroad, seeking warmer climates, lower costs, and vibrant communities. While challenges exist, the rewards of a new life in a different country can be worth the effort. Who knows? Perhaps the perfect retirement destination is waiting just beyond the borders of the U.S.
