A Retirement Strategy Far From Home

Saving for retirement is a project, and many find themselves bogged down by the question “how much will I need?”

After years of persistent inflation and rising costs of living, this question seems to have taken on even greater importance.

Against this backdrop, some Americans are adopting a unique strategy to make retirement less costly: leaving the country.

Saving Overseas

Nearly a third (32%) of U.S. retirees have relocated in retirement, according to a CNBC survey. This includes retirees moving domestically, be it to be closer to family, or to move into an area with a milder climate, or lower cost of living. But a significant number of Americans are widening their search for a more affordable place to live and look overseas.

At the end of 2023, nearly half a million Americans were receiving Social Security benefits abroad, per Social Security Administration data cited by CNBC. While that’s not a huge number in a nation of more than 300 million, it has been growing rapidly.

Careful Consideration

Relocating abroad can make financial sense when it comes to the cost of living. But other considerations, including access and quality of health care, political stability, foreign exchange rates, tax implications, and logistical hurdles, must also be considered.

For example, Medicare typically does not cover services outside the U.S., so some Americans may need to purchase private insurance when moving abroad, adding more financial considerations into the mix.

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