Summary:
An increasing number of American retirees are choosing to spend their post-work years abroad, driven by lower costs of living, better access to healthcare, and a desire for a more relaxed lifestyle. According to a CNN Travel article published on March 20, 2025, this trend reflects broader shifts in both (i) affordability concerns and (ii) lifestyle preferences among older U.S. citizens.
The article examines the growing trend of American retirees moving abroad, driven by (among other factors), financial concerns, political uncertainty, and lifestyle preferences. It focuses on the specific influences on the decision of where to retire internationally — such as cost of living, healthcare, and visa requirements — while highlighting the top retirement destinations for 2025.
The findings rely on data and expert insights from two principal sources:
- International Living’s 2024 Annual Global Retirement Index ranks Panama, Portugal, Costa Rica, Mexico, and France as the top five destinations for U.S. retirees, citing affordability, temperate climates, visa accessibility, and strong expat communities.
- Live and Invest Overseas, a publishing company specializing in international relocation, has seen a 250% increase in web traffic following the U.S. election, suggesting that political factors are contributing to the rising interest in retiring abroad.
After examining these reports, the article then presents its own list of the top five countries in which to retire overseas:
- Mexico remains the top choice for U.S. retirees, due to its proximity to the U.S., low cost of living, and well-established expat networks in cities such as San Miguel de Allende, Mérida, and Lake Chapala. In addition, Mexico’s healthcare system is both affordable and widely used by expats.
- Portugal is popular for its mild climate, safety, and access to quality healthcare. The country offers a residence visa for retirees and non-working individuals with sufficient income, and its capital Lisbon, as well as smaller towns like Cascais, have become expat hubs.
- Panama attracts retirees through its Pensionado Program, which offers discounts on various services and streamlined residency options. The U.S. dollar is accepted in Panama, making financial transitions easier for Americans.
- Costa Rica is favored for its natural beauty and stability. Retirees benefit from the country’s residency options for those with pension income and access to both public and private healthcare systems.
- Spain rounds out the top five, appealing to Americans with its Mediterranean lifestyle, established infrastructure, and non-lucrative visa for retirees. English-speaking expat communities are growing in cities like Valencia and Málaga.
According to the article, retirees abroad often cite cost of living, healthcare quality, climate, and the desire to experience a new and rich culture as core motivations for their decision to move internationally.
Financial insecurity is also a growing concern, with housing and healthcare costs depleting savings. Nearly half of U.S. families have no retirement savings at all, and approximately 17 million Americans aged 65 and older live in economic insecurity — earning 200% or less of the federal poverty level. As a result, many are looking to relocate to countries with a lower cost of living, where they can redirect expenses, such as transportation costs, toward discretionary spending, according to Sophia Titley, the editor-in-chief of Live and Invest Overseas.
However, and no matter how appealing the social, structural, and economic benefits of these countries are, the article notes that retiring in a foreign country involves navigating complex legal and political hurdles, including residency requirements and mandates relating to healthcare. Many popular destinations, such as Spain and France, mandate private health insurance as a prerequisite for residency. Despite this, healthcare in nearly all major retirement destinations remains far more affordable than in the U.S. Given that Medicare does not generally cover medical costs abroad, experts strongly recommend that retirees maintain Medicare coverage when possible.
As this trend continues to develop, its long-term implications for both retirees and U.S. economic policies warrant further analysis.
Original Article Link:
https://edition.cnn.com/travel/best-countries-us-retirees-moving-abroad/index.html
Source: CNN
Date: March 20, 2025