Retiring Abroad is increasingly popular, especially for Americans and western Europeans with a mid-range pension that would require an austere lifestyle at home but is sufficient for a much higher quality of life abroad. I’ve personally noticed an up-tick of retirees abroad over the 15 years I’ve been traveling, from living next to seniors who have settled down in south-east Asia, “migratory” pensioners spending six months in India and six months at home, and seeing more and more blogs and guides for retiring in central America. So first let me give a quick list of the countries that are most popular for retiring abroad, and then we’ll discuss a few of the most common concerns people voice about this adventurous but rewarding decision.
Countries: Thailand, Malaysia, Indonesia (Bali), Vietnam, Philippines, Sri Lanka, Bulgaria, Romania, Portugal, Morocco, Puerto Rico, Mexico, Ecuador, Colombia, Belize, Peru, among others!
Money: Most of these countries are livable for $1000 / month, if you aren’t too extravagant, and very comfortable if you have more to spend. In most places you can get a comfortable one or two bedroom apartment for $500/month (sometimes much less), and everything else is significantly more affordable than in the states. Just think about the lifestyle you can expect almost anywhere in the USA for $1000 / month, when you could be in a year-round sunny climate with bountiful fresh fruit and cheap restaurants and services. Many retirees abroad can afford house-keeping, a gardener, a guarded or gated community, etc. when these services would be far out of their price range back home.
Health: Believe it or not, medical services is often a reason TO consider moving abroad, not a sacrifice. Most of the countries listed above have extremely modern heath infrastructures in the cities (of course much less so in the countryside). Many doctors are western-trained, you’ll have access to almost any medications and treatments you have at home, and it comes at a fraction of the cost. Because of this “Medical tourism” has exploded in recent years, a phenomenon in which westerners (mainly Americans) go to India, Malaysia, Thailand, Turkey, Costa Rica, etc. for serious surgeries or treatments (plastic surgery, hip replacements, chemo-therapy, dental crowns, gastric bypasses, etc.) that would bankrupt them at home but are available at high quality for a 10th of the cost abroad. In some countries medicare will still cover you, though this requires careful research.
Language: English will generally be all you need, with a little flexibility and willingness to occasionally resort to charades. All through south-east and south Asia and central America you will be able to communicate in English almost anywhere you spend time regularly, and only when venturing into the countryside will you come up against a language barrier. Though I’m not proud of it, as a case-in-point I spent six months each in South Korea, Thailand, and India, and nearly a month in Cambodia and Vietnam, and the only thing I learned in each language was “hello,” “thank you,” “good-bye,” and sometimes “I’ll have...” I never once encountered a situation where the language barrier was a significant problem. With smartphone conversation-translation apps improving by the month, this may soon be a moot point anyway.
Living environment: So let’s be clear, there will be an adjustment and need for patience, flexibility, and at least a small appetite for adventure (though not the uncomfortable kind unless you want it). If you think you’ll be living “at home,” just cheaper and in a better climate, then maybe think twice. The culture will be different and sometimes frustrating, the infrastructure will not be quite as “smooth” as you’re used to (although banish from your mind any images of bumpy 10 hour bus rides or chickens in your lap), and the climate will at times be a bit too sunny or the rainy season might take you by surprise. At the same time you must remember that the world isn’t divided into the black and white dichotomy of “developed” and “undeveloped” anymore, and the scale from one extreme to the other is long and intricate. All the countries listed above offer a safe and comfortable living environment, especially in areas that are hubs of the expat community (which create a positive feed-back loop of high-quality services, proficient English, and cleanliness, which brings in lots of other expats to meet, which reinforces the loop). I can speak from experience that the difference between living in Thailand and the Ivory Coast is much more extreme than the difference between living in Thailand and the USA. In Thailand we had a clean and air-conditioned studio apartment with 24-hour English-speaking reception and a pool (with a waterfall!), we travelled by Uber cars which were impeccably clean and air-conditioned (usually costing a few bucks for up to 30 minutes ride), we could find most any kind of food we were craving (did you know Chiang Mai is famous for its gourmet coffee and pie?), and even after going “wild” at street markets and food festivals we never had the smallest “rumblings” in the tummy, much less the food-poisoning that’s common in more “adventurous” countries. Bottom line, it will be challenging and new, but in a good way, and that should be part of the point. If you’re up for that, then you can enjoy a higher quality of life for your budget in a pleasant and interesting environment.
Family: This is a big one, and I won’t try to minimize it. The big step in retiring abroad is moving far away from family and friends. This is a personal choice and every situation is different. I will point out that if your kids are scattered across the USA, then there’s the possibility that central America isn’t that much farther (and if you’re on separate coasts then the beautiful Yucatan Peninsula in Mexico will actually put you closer together, and you’d be just a couple hours away by plane if you have family in Texas or Florida). Otherwise consider carefully how often you or they will be able to travel the distance to see each other (might be easier than you think, there are round-trip flights from California OR NYC to Thailand for $500 in the off-months), and decide if that’s acceptable to you. If you’re in an exciting location like Thailand or Bali you might see friends and family more often than you do at home, which was certainly our case in a few locations (Chiang Mai, Prague). Also remember that you don’t need to pull up your roots, and you can (and should!) first plan to keep you home in the USA and rent abroad for a year maximum. After that you can decide if that’s enough adventure for you or if you’re in love and want to stay! In the end this is a very personal choice, but make sure you’re not holding yourself back for family when you’d likely be able to see each other and have “quality time” more often than you’d expect even while living abroad. It’s a shrinking world and most people are just looking for an excuse to take an exotic vacation, especially if they know someone there. If this all seems intimidating or far-fetched, remember that 100,000s people have gone before you and made a home abroad (already in 2011 nearly 350,000 American retirees asked for their pension check to be sent to an address overseas, and I’m sure the number is higher today). Here’s some further reading to get you started, please let me know if you have any follow-up questions or if you think I missed something. Happy Travels! Please like, share, comment!
