A significant movement is emerging among U.S. retirees: Americans are increasingly choosing to spend their retirement years abroad, motivated by soaring domestic living costs, limited Social Security, and higher-quality living overseas. With the typical Social Security benefit hovering at just above $2,000 per month and U.S. living expenses often exceeding $4,600 per month, many find the financial pressures untenable.
Countries offering lower living costs, favorable retirement visas, robust healthcare, and strong expat communities are drawing attention. Rigorous comparisons using the Global Intelligence Unit’s 2025 Global Retirement Report highlight destinations across Europe, Latin America, and Southeast Asia that excel in affordability, healthcare, quality of life, and procedural ease.
What Makes Each Country Stand Out
Mexico emerges as a compelling option for U.S. retirees due to its affordability, proximity, and welcoming communities. Ranked #3 in the 2025 Global Retirement Index, it offers a typical monthly budget of $1,800–$2,400 for a couple, with one-bedroom apartments in city centers being particularly affordable. High-quality private healthcare, often at a fraction of U.S. prices, and the availability of Temporary or Permanent Resident Visas based on demonstrated income or savings further enhance its appeal.
Spain continues to lead as a European favorite, offering Mediterranean lifestyle, strong cultural appeal, affordable living (around $2,300–$2,900 per month), and universal healthcare. The Spain Non-Lucrative Visa allows financially self-sufficient retirees to relocate, backed by bilateral U.S.–Spain tax treaties.
Portugal, positioned at #1, is renowned for its affordable living (about $2,200–$2,800 per month for a couple), quality public and private healthcare, and the D7 passive income visa—which requires a modest income and grants access to healthcare, Schengen travel, and potential citizenship after five years.
Costa Rica ranks #4, appreciated for its Pura Vida lifestyle, lush environments, and expat-friendly atmosphere. Costs are comparable to Europe ($2,000–$2,500 monthly), with quality public and private healthcare and the Pensionado Visa accessible with $1,000 per month in guaranteed income.
Panama is rated #5, offering enticing tax benefits, stable residency via the Pensionado Visa, and discounts on essential services. Monthly expenses for couples align with other Central American options ($2,000–$2,400) and private insurance remains affordable ($100–$250 per month).
Other notable destinations: Thailand (low cost, excellent private healthcare, retirement visa available), Uruguay (safe, stable, pensionado visa), Greece (culture-rich, tax perks for retirees), Malta (English-speaking, EU-standard healthcare), and Malaysia (MM2H visa, affordable and modern) round out the top ten—each offering unique benefits across lifestyle, cost, and procedural access.
Preparing for the Transition: Practical Considerations
Experts stress that relocating abroad is as much a lifestyle shift as a financial one. Individuals like Amy Glenn, formerly from Texas, transitioned to Costa Rica when her $1,200 Social Security was insufficient, and Stephen Vargha, displaced by high healthcare costs in the U.S., found a significantly more comfortable life in Ecuador.
MarketWatch reports that even single retirees on average U.S. Social Security can live comfortably abroad for around $2,000 per month, but preparation is key: securing private or local healthcare (Medicare typically does not apply abroad), safeguarding against currency fluctuations, crafting emergency and estate plans, and testing destinations before committing are vital steps.
Investopedia advises comprehensive planning—budgeting for housing, healthcare, taxes, legal obligations, and logistics is essential. Retirees should also evaluate visa requirements carefully: Mexico’s Temporary Resident Visa (lasting 1–4 years, leading to permanent residency) requires proof of income and insurance. Similar structured programs exist in Costa Rica, Ecuador, and Portugal.