From 2019 to 2022, the number of Americans receiving their Social Security benefits overseas increased from 413,000 to 760,000. With more countries opening up retirement visas, the idea of retiring abroad continues to grow in popularity.
Why are so many people drawn to living in another country?
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Beyond the novelty of traveling and experiencing a new culture, two things stand out when talking to overseas retirees: cost of living and quality of life.
Laura and Chris Barnett, a couple from Fayetteville, North Carolina, told CNN about their plan to move to Portugal, and the cost was a huge factor.
“[The U.S.] has set up a system where even if we have the money to cover our day-to-day expenses — rent, food, travel — all of a sudden there’s this other line item called health care. That’s about $1,500 a month, more than our house payment,” Laura said.
She continued by saying that they believe they’ll be able to live on less than $3,500 per month in Portugal while still being able to travel throughout Europe.
The Wall Street Journal covered a story of six people who retired overseas with savings ranging from $70,000 to $1.8 million. You don’t have to be a millionaire to retire abroad.
One of the couples WSJ spoke to was Halisi Vinson, 58, and Ricard Crawley, 67, who retired in Lisbon, Portugal. They saved $300,000 for retirement, and after speaking to others who had made the move and visiting Portugal for a month themselves, they moved from Denver to Lisbon. Their monthly expenses, which include rent and dining out, are about $2,600 per month. That’s half what they’d expect in the U.S.
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Portugal isn’t the only place retirees flock to. Susan Wojcik, 62, retired in Samara, Costa Rica, and is able to cover her expenses with her $1,421 Social Security check.
One retiree living in Spain told WSJ, “My stress level in Spain is much lower as a result of the lower cost of living and an overall higher quality of life.”
It isn’t just health care, food, and rent that cost less when living abroad. Many places, particularly in Europe and Asia, have good enough public transportation that you don’t need a car. Some countries focus less on consumerism, so there isn’t as much pressure to buy things when going out.
More people are growing concerned that they won’t be able to afford basic expenses in their retirement, and many must continue to work well into their 60s to afford health care. If retiring abroad and traveling the world with a lower cost of living is your dream, by all means, go for it.
Moving abroad permanently definitely has drawbacks and bureaucracy to worry about — leaving family in the U.S., taxes, visa application and renewal processes, and other paperwork — but it is doable.
Whether you want to retire abroad or just plan for a comfortable retirement stateside, a good financial advisor can help you achieve financial stability. Consider arming your financial toolbelt with an advisor who can guide you in your unique retirement goals.
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This article Say Goodbye to High U.S. Costs: Why Retiring Abroad Is the New Financial Strategy for Boomers originally appeared on Benzinga.com
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