Why Retire Abroad? 5 Ways That Changing Countries Can Make Your Life Better

For countless people in the United States, retirement is something they are eagerly looking forward to. After spending many decades working long hours just to survive, the idea of spending the rest of your days resting and indulging in several hobbies is just enticing.

But for many American retirees, retiring in the same country that they’ve lived in for all their lives is not what they wanted to do. In fact, this has now become a trend — people looking for the easiest countries to move to and then uprooting their lives to reside in another country. So, why retire abroad?  

According to a 2018 study, about 12% of Americans have thought about making the transition and in 2019, roughly 431,000 U.S. workers were living overseas when they received their Social Security benefits. That is definitely quite the number to consider.

But why is this the case right now? Why do Americans love to live abroad for their retirement? And should you also think about retiring overseas? To help you understand this scenario and see if this is something you’d like for yourself, here are the five most popular reasons why many Americans prefer to live overseas when they’re of old age.

5 Reasons Why Americans Retire Abroad

Living in a New Country Means Having New Experiences

When an American retires in the United States, they can expect the same familiar lifestyle that they have always lived for many years. This actually offers its own advantage: living the same lifestyle provides a great deal of comfort and ease. Aside from that, you have an established network of friends and family, so hanging out with your loved ones will always be a breeze.

But for many people, this kind of living gets stale and boring really fast. Conversing with the same people and doing the same routines doesn’t appear appealing anymore. For that reason, they ache for new adventures and experiences. Living abroad fixes that problem for you.

When you retire in a different country, you have the opportunity to meet new people and learn their interesting stories. You also get to travel to places you’ve never been to before and experience new fascinating cultures. All these new experiences will significantly enrich your life, and you will spend the rest of your days happy and fulfilled.

Long story short, living abroad allows you to realize the dreams of traveling and befriending interesting people – the dreams you’ve had since you were a working adult. 

Retiring Abroad Means a Lower Cost of Living

It’s a fact universally known that the United States is among the most expensive countries to ever live in. Statistics show that the median rent price for unfurnished apartments is $1,588, and the average daily spending of one consumer is $109. And all of that doesn’t even take into account having a family. If you have dependents, then the cost of living is significantly higher.

In other words, if you choose to retire in the U.S., you might get stressed out with all the high prices because you don’t have a source of income anymore. You might even be forced to work again just to afford the basic necessities.

This pattern gives an obvious answer to the question ‘why retire abroad?’ – because doing so is often cheaper. Americans want to leave the country and move somewhere else where the cost of living isn’t that high. Fortunately, there are so many countries in the world that have a low cost of living, so moving to one of them is an ideal situation.

The best thing about living in a country with a low cost of living is that you can budget without worrying too much. You can afford to accommodate all of your needs and still have some spare money to buy luxuries. Essentially, you don’t have to stress about losing too much money – instead, you can focus on living your best life to your fullest.

Living Outside the U.S. Gives You Access to Affordable Healthcare

Another glaring problem that the United States has is its healthcare system. Everyone – even those who are not in the country — knows that the American healthcare system is a complicated labyrinth full of expensive costs everywhere.

You need to get your own health insurance, there is no price control for medications and drugs, and doctor fees are high. As a result, when you need healthcare, you need to be ready to shell out a considerable amount of cash.

Because of this horrible system, many Americans tend to avoid going to doctors — even when they’re sick. Sometimes, when they get into accidents, they refuse to call the ambulance because they know they will have to pay thousands for just riding in an ambulance heading to the hospital.

It’s even highly recommended for people about to retire that they save up to $300,000 (after tax) to cover any healthcare expenses they might have during their retirement.

As such, it only makes sense that many Americans want to reside in a country with better and cheaper healthcare costs. And as luck would have it, many countries fit that bill. For example, if you think about moving to Spain, review your health insurance cost and to find the best choice for you.

Anyway, in countries outside US, medications won’t cost you an arm and a leg, and the cost of going to a doctor for a checkup is reasonable. Private hospitals that feature higher prices definitely still exist, but at least there are public hospitals as well, so you have options to choose from.

Long story short, when you live in another country, you don’t have to worry about not being able to afford healthcare. 

Some Countries Offer Incentives for American Retirees

The idea of uprooting your life and living somewhere else is a complex process — there are just so many things to plan and so many documents to go through. But there are actually countries that offer incredible incentives to convince retirees to relocate there.

For example, several towns in Spain, France, and Italy sell fixer-upper houses for only one euro to attract investments from ex-pats. Other countries — such as Panama, Greece, Malaysia, Portugal, Nicaragua, and the Philippines — offer other enticing promises, like visas that provide tax cuts, steep-discount programs, and other financial incentives.

Because of all these incentives, leaving the U.S. and relocating somewhere else sounds even more inviting now. As such, if you’re planning to retire abroad, you should start researching what countries offer incentives for retirees and then decide which one you would like to choose from the list.

You Get to Choose Country with a Climate You Like

Finally, the last common reason why American retirees are looking forward to living abroad is that they don’t like the climate they have been used to. The United States is a super vast country, so different states and cities experience different weather patterns. But all the same, a lot of Americans experience extreme weather — from really hot summers to freezing winters — and so, they dream of going somewhere else where the weather is to their liking.

Retiring abroad gives them the chance to fulfill that dream. There are countries with temperate climates, so you don’t need to be concerned about experiencing extreme weather conditions. Or you can also choose to go to a tropical country where it doesn’t snow at all if that’s what you prefer.

Basically, if you are tired of the American climate, then you have the freedom to choose another country with a climate that is more to your liking.

Conclusion

When we think of retirement, the first thing that comes to our minds is relaxation. Supposedly, when we’re retired, we don’t have to work anymore, and we’re allowed to spend countless hours every day just engaging with our hobbies and having fun.

Why retire abroad, then, given that you can easily relax this way in the United States.

Unfortunately, the United States is not exactly the best place to retire. With a high cost of living and expensive healthcare, we will only end up losing so much of our savings in just one year of retirement. For that reason, many Americans nowadays are hoping to leave the U.S. and reside anywhere else when they get older.

Retiring abroad has its own list of perks. Aside from offering affordable healthcare and a lower cost of living, you also get to experience a new adventure — one that you will never forget in your life. Aside from that, many countries offer incentives, so you get to save a lot of money as well. It’s just a win-win situation all-around.

That said, living abroad for retirement is not for everyone. So, if you are interested in doing this in the future, you need to do a lot of research first. Look up which countries you’d love to live in.

See if you are financially prepared to uproot your life and if you are ready to leave your family and friends behind. Once you have thought things through and finally made your decision, then you need to start preparing.

Wherever you have decided to live, hopefully, you will have the best time of your life. After all, that’s what your retirement is supposed to be: full of joy and radiance.