Why more US retirees are choosing to move abroad—best countries revealed

Retirement often represents a fresh chapter in life, one that allows individuals to rethink how and where they want to spend their time. For a growing number of Americans, this chapter is taking shape far from home. Rising living costs, lifestyle preferences, and the promise of new cultural experiences are leading many retirees to consider international destinations as their ideal retirement setting.

While precise numbers on how many Americans are opting for this change are not available, agencies assisting in international relocation note a significant increase in interest. This pattern indicates more than mere curiosity; it points to a shift that might transform retirement for many.

Reasons why the desire to retire overseas is increasing

Relocation companies and expat advisory platforms have seen surges in traffic and questions about moving abroad, especially following major political or economic shifts in the U.S. For example, some experts note a sustained increase in interest that began after recent elections, driven by a combination of economic uncertainty and social considerations.

Monetary aspects are a major concern for numerous retirees. Prices for necessities like housing, rent, and medical care persistently increase in the United States, adding more pressure on those with fixed incomes. Recent data indicates that almost half of American households lack retirement savings, and over 17 million people in the U.S. aged 65 or older are deemed financially vulnerable—earning no more than twice the federal poverty threshold. For these individuals, moving to a nation with a notably lower living cost can be an attractive option.

Relocating to another country offers opportunities for reducing costs and experiencing new adventures. Numerous retirees see this as an opportunity to adopt a more relaxed lifestyle, savor improved weather, and engage with cultures they have admired for a long time.

Beyond aspirations: Real-world factors influencing the movement

Industry experts point out that interest in retiring abroad is more practical than aspirational. Prospective retirees are not just daydreaming about life in a villa overlooking the Mediterranean—they are asking specific, detailed questions about visa requirements, tax implications, and healthcare systems. This shift from hypothetical interest to actionable planning signals a lasting trend rather than a temporary spike in curiosity.

Platforms like Live and Invest Overseas and International Living report unprecedented growth in readership and event participation, with retirees making up the bulk of their audiences. These organizations offer detailed guidance on critical issues such as obtaining residency, managing taxes, and accessing medical care in different countries.

Their popular annual rankings of the best places to retire weigh factors including affordability, healthcare quality, climate, safety, and ease of integration. Among the destinations that consistently rise to the top are Panama, France, Malaysia, Spain, and Mexico—each offering its own unique blend of advantages.

Essential elements to consider prior to taking the step

While the thought of retiring abroad is exciting, it requires thorough planning and a realistic assessment of what life will entail in a new country. Here are some essential considerations for anyone thinking about making this transition:

1. Visa and residency prerequisites

Different countries have varying rules for granting long-term residency to retirees. Some nations offer special retirement visas that require proof of stable income or financial assets, while others impose stricter qualifications. It’s crucial to understand these requirements before committing to a move.

2. Healthcare plans and expenses

Healthcare is another major factor. While most countries on the list offer high-quality, affordable medical care, some require retirees to secure private health insurance as a condition for visa approval. It’s also important to note that U.S. Medicare benefits generally do not extend beyond American borders, except in rare circumstances.

3. Adapting to language and culture

Understanding the native dialect can facilitate assimilation and improve everyday experiences. Even though English is commonly used in certain locations, retirees need to be ready for cultural variations that might impact all aspects, from eating customs to societal expectations.

4. Financial implications and taxation

Relocating to a foreign country does not exempt U.S. citizens from their tax duties. U.S. citizens residing in other nations are required to submit federal tax returns, and sometimes also pay taxes in the nation they have moved to. Being well-informed about these regulations, and utilizing tax agreements when applicable, can help avoid expensive errors.

5. Lifestyle compatibility

Beyond legal and financial considerations, retirees should evaluate whether a location aligns with their preferred lifestyle. Climate, recreational opportunities, cost of everyday goods, and proximity to family are all important factors.

Five countries attracting American retirees in 2025

Panama

Panama has long been a top choice for retirees, and for good reason. It offers what many experts consider the most attractive retirement visa in the world—the Pensionado Program. Applicants need to demonstrate a monthly income of at least $1,000 from a government pension or similar source, with an additional $250 required for each dependent. The program grants extensive benefits, including discounts on airfare, entertainment, and healthcare services.

Health services in Panama are contemporary and cost-effective, offering substantial discounts on prescription drugs to legal residents who are of retirement age. Although English is not predominantly used outside of city areas, acquiring basic Spanish skills can significantly improve the experience.

France

Those who appreciate European culture will find that France blends sophistication with practicality. The country’s top-notch healthcare system is largely funded by the government, providing exceptional services to its inhabitants. Although France is famous for its luxury, numerous regions outside of Paris present cost-effective living options. The monthly rent for a family-size apartment in smaller towns can be just $1,100.

Those who are retired and thinking about moving to France should be mindful of the nation’s inheritance tax regulations and residency guidelines. France’s administrative processes can be intricate, and those who do not speak French might face difficulties. Nonetheless, retirees from the U.S. enjoy the advantages of a tax agreement that permits retirement accounts like IRAs and 401(k)s to maintain their U.S. tax classification.

Malaysia

Malaysia consistently ranks as one of the most affordable places to retire. Rent for a one-bedroom apartment in Kuala Lumpur can range between $300 and $500 per month, with utilities adding just $40–$60. Excellent healthcare, English-speaking medical staff, and a rich cultural mix make Malaysia an attractive option.

The Malaysia My Second Home (MM2H) initiative offers a renewable visa with multiple entries to retirees who fulfill specific financial criteria, like holding a fixed deposit in a Malaysian bank or demonstrating adequate monthly earnings.

Spain

Spain offers a combination of warm weather, vibrant culture, and affordable living, making it a perennial favorite among retirees. Its healthcare system ranks among the best in Europe, and its cost of living is generally lower than in many U.S. cities.

Individuals who have retired are eligible to request Spain’s non-lucrative visa. This visa necessitates demonstrating sufficient financial resources, approximately $2,600 monthly for one person applying individually. While Spanish remains the primary language, sizeable expatriate groups and outstanding transportation systems help new arrivals adapt more easily.

Mexico

Being near the United States makes Mexico an attractive option for retirees who wish to stay close to their loved ones. The country offers a low cost of living, thriving expat communities, and familiar amenities like streaming services that ease the transition. Healthcare is both affordable and accessible, and there are residency possibilities for those who fulfill the financial criteria.

However, retirees should research safety conditions and choose their location carefully, as crime rates vary by region. Popular retirement spots include San Miguel de Allende, Puerto Vallarta, and Mérida, all known for their charm and strong expat networks.

Aspects of healthcare and Medicare

A major worry for those who have stopped working is health insurance. Although healthcare costs in other countries are typically much lower than in the United States, Medicare usually does not pay for services received outside the U.S. Specialists advise maintaining Medicare insurance if feasible, even after moving abroad, as it offers a backup option in case returning for medical care becomes necessary.

Private health insurance or enrollment in a local medical plan might be necessary to obtain residency in various countries. For example, Spain and France demand evidence of coverage when applying for a visa.

How to prepare for an international retirement

Financial planning is critical. Evaluate how exchange rates, banking access, and potential taxes will impact your budget. Set up a financial safety net that includes access to funds in both U.S. dollars and local currency. Work with a tax professional familiar with international regulations to avoid surprises.

Lastly, prepare emotionally. Moving abroad can be exhilarating, but it also comes with challenges. Language barriers, cultural differences, and distance from loved ones require flexibility and resilience.

A decision about living that transforms retirement

The trend of Americans retiring overseas shows no signs of slowing down. Motivated by financial realities and a desire for adventure, retirees are reshaping the concept of retirement into one that embraces mobility and cultural diversity. Whether it’s sipping coffee at a Parisian café, enjoying a tropical sunset in Panama, or strolling through a Spanish plaza, the possibilities for living well in retirement have never been more exciting.

For individuals contemplating this daring decision, investigation and groundwork are essential. With proper preparation, living overseas during retirement can provide a cost-effective, rewarding, and genuinely life-changing adventure.