The Popularity of Retiring Abroad Among Americans
As a record-breaking number of Americans reach the age of 65 this year, many are considering retiring abroad. Former U.S. residents, or “expats,” view this as a solution to the escalating costs of living and healthcare in the United States. However, this dream comes with its own set of challenges in foreign countries.
For some expats who have reached retirement age, a slower pace of life, a sense of community, and a temperate climate were sufficient reasons to relocate. Jeff Natale, a 68-year-old living near the sunny shores of Playa del Carmen in Mexico, is one such individual. After years in New York and New Jersey, he decided he'd had enough of harsh winters and urban sprawl. He was inspired to live a different kind of life after a high school trip to Mexico’s Yucatan peninsula in 1982. Over 30 years later, after marriage and raising a family in the United States, he returned to live in Mexico.
Latin American countries such as Mexico, Panama, Colombia, and Brazil are top choices for living, according to the expat resource InterNations. In Europe, Spain ranks in the top 10 for best expat destinations, alongside the Philippines and Thailand in Southeast Asia.
The number of Americans collecting Social Security income abroad has increased significantly in recent years. In December 2008, the number of retired workers collecting benefits abroad was 306,906, according to the Social Security Administration. That number reached 443,546 by December 2021. As of this year, more than 760,000 total Social Security beneficiaries living abroad receive a total of $7.5 billion in payments. That’s represents an almost 40 percent increase of total beneficiaries collecting from another country since 2008.
Healthcare Considerations for Expats
When asked why he chose Playa del Carmen, Natale said the seaside town is a vibrant “melting pot” of people, food, and lifestyles from all over Mexico. He also mentioned that medical services are good and can be affordable. However, pricing varies in Mexico’s healthcare system. Public healthcare is inexpensive by U.S. standards, but services can be limited in the public sector, especially in rural areas. Private healthcare is considered the gold standard in Mexico, offering access to a larger network of hospitals and specialists, better infrastructure, and a higher number of English-speaking staff, according to the insurance provider Allianz Care.
Mexico has been a popular medical tourism destination for years. Thanks to the rising number of U.S. residents seeking healthcare abroad, retirees now enjoy well-established infrastructure and English-speaking care providers. In 2007, roughly 750,000 Americans traveled to other nations for healthcare. That number surpassed 1.4 million by 2017, according to a study published in The American Journal of Medicine.
Challenges and Planning for Retirement Abroad
An estimated 80 percent of households with older adults—around 47 million—are either financially struggling or not far from it, according to a National Council on Aging study. Being able to afford retirement in the United States is a growing concern. This is reflected in a recent CNBC survey where one in every five retirees said they have no retirement savings. Another 15 percent said they have less than $50,000 saved. More than half of respondents feel they don’t have enough money to last for the duration of their retirement, and 86 percent said inflation has impacted their savings.
However, despite the perks of finding cheaper, sunnier shores abroad, there are still hurdles to navigate. “Challenges for retirees often involve understanding and integrating into local legal systems,” attorney Michael Hurckes, managing partner at MAH Advising, told The Epoch Times by email. Retiring abroad requires a lot of preparation. According to U.S. Bank’s wealth management division, retirees should consider residency requirements, tax obligations, banking, and real estate before moving overseas.
Bottom Line
Retiring abroad is becoming an increasingly popular option for many Americans due to the high cost of living and healthcare in the United States. However, this decision comes with its own set of challenges, including navigating foreign legal systems and healthcare. Despite these hurdles, many retirees find the benefits outweigh the difficulties, enjoying a slower pace of life, a sense of community, and a temperate climate in their chosen countries. What are your thoughts on this trend? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing which is every day at 6pm.
The Popularity of Retiring Abroad Among Americans
As a record-breaking number of Americans reach the age of 65 this year, many are considering retiring abroad. Former U.S. residents, or “expats,” view this as a solution to the escalating costs of living and healthcare in the United States. However, this dream comes with its own set of challenges in foreign countries.
For some expats who have reached retirement age, a slower pace of life, a sense of community, and a temperate climate were sufficient reasons to relocate. Jeff Natale, a 68-year-old living near the sunny shores of Playa del Carmen in Mexico, is one such individual. After years in New York and New Jersey, he decided he'd had enough of harsh winters and urban sprawl. He was inspired to live a different kind of life after a high school trip to Mexico’s Yucatan peninsula in 1982. Over 30 years later, after marriage and raising a family in the United States, he returned to live in Mexico.
Latin American countries such as Mexico, Panama, Colombia, and Brazil are top choices for living, according to the expat resource InterNations. In Europe, Spain ranks in the top 10 for best expat destinations, alongside the Philippines and Thailand in Southeast Asia.
The number of Americans collecting Social Security income abroad has increased significantly in recent years. In December 2008, the number of retired workers collecting benefits abroad was 306,906, according to the Social Security Administration. That number reached 443,546 by December 2021. As of this year, more than 760,000 total Social Security beneficiaries living abroad receive a total of $7.5 billion in payments. That’s represents an almost 40 percent increase of total beneficiaries collecting from another country since 2008.
Healthcare Considerations for Expats
When asked why he chose Playa del Carmen, Natale said the seaside town is a vibrant “melting pot” of people, food, and lifestyles from all over Mexico. He also mentioned that medical services are good and can be affordable. However, pricing varies in Mexico’s healthcare system. Public healthcare is inexpensive by U.S. standards, but services can be limited in the public sector, especially in rural areas. Private healthcare is considered the gold standard in Mexico, offering access to a larger network of hospitals and specialists, better infrastructure, and a higher number of English-speaking staff, according to the insurance provider Allianz Care.
Mexico has been a popular medical tourism destination for years. Thanks to the rising number of U.S. residents seeking healthcare abroad, retirees now enjoy well-established infrastructure and English-speaking care providers. In 2007, roughly 750,000 Americans traveled to other nations for healthcare. That number surpassed 1.4 million by 2017, according to a study published in The American Journal of Medicine.
Challenges and Planning for Retirement Abroad
An estimated 80 percent of households with older adults—around 47 million—are either financially struggling or not far from it, according to a National Council on Aging study. Being able to afford retirement in the United States is a growing concern. This is reflected in a recent CNBC survey where one in every five retirees said they have no retirement savings. Another 15 percent said they have less than $50,000 saved. More than half of respondents feel they don’t have enough money to last for the duration of their retirement, and 86 percent said inflation has impacted their savings.
However, despite the perks of finding cheaper, sunnier shores abroad, there are still hurdles to navigate. “Challenges for retirees often involve understanding and integrating into local legal systems,” attorney Michael Hurckes, managing partner at MAH Advising, told The Epoch Times by email. Retiring abroad requires a lot of preparation. According to U.S. Bank’s wealth management division, retirees should consider residency requirements, tax obligations, banking, and real estate before moving overseas.
Bottom Line
Retiring abroad is becoming an increasingly popular option for many Americans due to the high cost of living and healthcare in the United States. However, this decision comes with its own set of challenges, including navigating foreign legal systems and healthcare. Despite these hurdles, many retirees find the benefits outweigh the difficulties, enjoying a slower pace of life, a sense of community, and a temperate climate in their chosen countries. What are your thoughts on this trend? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing which is every day at 6pm.
