By Craig Erwin, Ph.D.
Photo by KoolShooters on Pexels.com
Although most Americans still retire at home, more keep retiring abroad. Why? According to ChatGPT, Americans often retire abroad for financial reasons; seeking more affordable healthcare, lower taxes, cheaper housing, or better economic conditions. They may also want to live somewhere new and interesting. Some may move closer to family members or others with similar interests or views. And some may seek relief from thorny domestic problems.
Americans used to retire in the southern U.S., but now consider factors beyond weather and the cost of living. And they are willing to venture further afield. Kiplinger’s notes that Americans who, in the past might have retired in Central America (largely due to warmer weather and a lower cost of living) are increasingly choosing to retire in Europe, as quality of life concerns trump worries about the cost of living. And even as Latin American countries have worked to make migration easier, European countries have also become friendlier to expats by relaxing residency requirements. In a recent list of 10 recommended offshore retirement destinations, U.S. News & World Report listed 5 countries in Latin America and the Caribbean, 2 in Europe, and 3 in Asia. And, although European countries may not always be cheap to visit, many may actually be quite affordable to live in.
Clearly it will take more preparation to retire abroad than stateside. But no matter where you want to retire, start planning. And even if you retire to a country with a lower cost of living, it will be hard to live on social security alone. Even after retirement, life will still be expensive.
Go ahead; dream away. Retiring abroad could be the ultimate adventure. But without sufficient preparation, it might be more than you bargained for.
Do you know where you want to retire?
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