I have good friends who decided that since the kids were grown, they had remote work that could be completed anywhere with a good Wi-Fi connection, and their house had been rented, they may as well go out and explore the world. Unfortunately, they did not count on Covid-19 or being locked down in the first country they visited but they persevered and are now enjoying the adventure of a lifetime. With the world opening up again, people are starting to once more think about travel and also, more permanent moves, both here and abroad. For some, like my friends, the appeal comes in the exploration and excitement of living in a new country. Others select nations where their retirement income can go further, and still others choose countries where there is an ancestral tie or family connection.

What does it take?

Of course, it requires more than a passport and a plane ticket to retire abroad. Some considerations to keep in mind when making this choice are health care, visa requirements, taxes, local culture, and of course the cost of living. Before making the ultimate decision, when possible, it is wise to spend some time in the country of choice, to ensure that the move is one that will make you happy. The last thing anyone wants to do is move, lock stock, and barrel across an ocean, only to find that they miss home, they miss their family, they miss their culture, they miss the familiar. In other words, no one wants homesickness to ruin a major life decision. If you are adventurous, however, or you feel that living abroad is for you, here is a list of ten countries that the U.S. State Department lists as excellent options for retirees:

Living in Panama:

This is a popular choice for many seniors, as it is close to the U.S., has a good year-round climate, and the atmosphere is warm. The cost of living is also doable for many American retirees, fitting most budgets. The Panamanian government offers seniors benefits such as discounts on a variety of services and a tax exemption on the importation of household goods. There is a two-tier health system, so retirees can determine if they want to use public healthcare or if they have the means for a private plan, which provides coverage at reasonable prices. 

Living in Portugal:

I also have friends who recently bought an old windmill and converted it into a home near Lisbon. They rave about the mild weather and friendly people, not to mention the gorgeous scenery, which attracts people from all over the world. Housing costs can be quite reasonable and even large cities, such as Lisbon, cost approximately half of what New York City would cost. Smaller towns can cost much less. In Portugal, health insurance (either the National Health Service or a private plan) is required as a condition of receiving a residence permit, which is valid for five years. After the initial five years, one would apply for a permanent permit. 

Living in Dominican Republic:

This is one of the least expensive Latin American countries for retirees. Even in the capital, rent is approximately 90% lower than in NYC, and since it is a short plane ride to Miami, its proximity to the U.S. makes it appealing to many. Retirees coming from America are not eligible for government health programs but purchasing a private plan is not pricey and quality healthcare is easily accessible at private hospitals. Personal safety can be an issue in certain areas, so it is best to do some research if this is your international location of choice.

Living in Spain:

Sunshine, great food, friendly people, and a choice of various environments, from the oceans to the mountains, from small ancient villages to large metropolitan cities make Spain a top choice for many American expats. The cost of living is much more budget-friendly outside of the larger cities and most opt for private health plans in Spain's highly-rated healthcare system. An initial residence visa lasts for one year, followed by a five-year visa, after which time most apply for permanent residency.

Living in Costa Rica:

This Central American country stretches from the Caribbean to the Pacific, with gorgeous rainforests, jungles, and beaches from one end to the other. The cost of living is reasonable and one way to become a resident is to show a monthly income of $1,000, which must be placed in a Costa Rican bank and used for local living expenses. Another option is to keep a minimum of $60,000 in the bank for two years. For residents, Costa Rica has a national medical program with no co-pays or exclusions but there is also an option for private plans or self-pay.

Living in Malta:

Located in Europe, nearly 15% of Malta's population consists of expats from English-speaking countries, meaning that English is widely spoken. Add in great weather, architectural beauty, and a cost of living that is similar to what we enjoy in the U.S., and it is easy to see why it is a favorite among retirees. Private healthcare is a must, as expats do not have access to the national healthcare system. In order to gain permanent residency, retirees must show $600,000 in assets, pay taxes, and purchase real estate. 

Living in Ecuador:

This country is located in the northwest part of South America and is home to an active volcano and miles of Pacific Ocean shoreline. It has a low cost of living and is attractive to those who enjoy adventure and nature. Ecuador uses the U.S. Dollar as its currency (who knew!), and many people speak English. Healthcare services are guaranteed to all, whether citizen or visitor and foreign retirees can join the government system for less than $100 a month for full coverage. There are minimum income requirements, as well as obligatory investments in real estate or bank deposits in order to gain a temporary visa application. Permanent residency visas are available after 21 months under a temporary visa.

Living in Mexico:

Mexico is affordable, nearby, and familiar to most Americans. Offering a wide range of destinations, lifestyles, climates, and cost of living, it is not surprising to find out that Mexico is the top destination for American retirees who want a taste of life in a different country. There are two government-run healthcare programs but many retirees either purchase a private plan or pay cash for services rendered. Becoming a resident is not difficult, with modest income requirements, and temporary residence can last for up to four years, with reapplication possible at that point. 

Living in Colombia:

This beautiful South American country offers everything from beaches to rainforests to mountains, as well as small villages and large, cosmopolitan cities. The cost of living is reasonable, with inexpensive rents and a variety of housing options. Healthcare is high quality and affordable and expats are eligible to participate, as long as they hold a national ID card. There are also private insurance options. Most retirees who live in Colombia hold a pensionado visa, which requires a monthly income of approximately $750. After five years, retirees can apply for a resident visa. 

Living in United States:

Finally, if you want to relocate but do not wish to cross oceans, Florida is the place to go. With both the Gulf Coast and the Atlantic Ocean easily accessible, plus abundant sunshine, top-notch healthcare, much of it focused on seniors, and finally, no state income tax, it is the state that many retirees look to when considering a move. There are large, diverse cities and small quaint towns, and Florida can rightfully boast about its delicious and fresh seafood options. Spend a day in vibrant Miami and you can easily believe you are overseas, or take a trip to any of the numerous small beach towns in the Panhandle, and you will feel like you have escaped all of your everyday stressors. 

In Summary

So there you have it, the top ten. I am sure if I looked at ten other lists, I would find a hundred different destinations. The trick is to do your research, figure out what you are looking for in a location, find an expert to help you with your planning, and then pack your bags and head off for the biggest adventure of a lifetime! If a permanent move is not for you but some international travel is, see below for a list of exciting trips that are being offered around the world, and a new app that lets you track covid rules and restrictions from many participating countries. And if you, like me, will be planning nothing more exciting than a trip to the grocery store, enjoy that as well. Perhaps it is time to look into the cuisine from each of these ten countries!

Warmly,

Kimberly Wolf and Your Team at Pacific Financial Advisors