This article takes a look at the top 20 places boomers prefer to retire outside the U.S. If you wish to skip our detailed analysis on navigating quality of life, cost, and healthcare beyond US borders, you may go to the Top 5 Places Boomers Prefer to Retire Outside the U.S.
Navigating Quality of Life, Cost, and Healthcare Beyond U.S. Borders
As the baby boomer generation in the US transitions into the retirement age, the notion of redefining their golden years by exploring overseas retirement options has taken on a more pragmatic hue. Five million American retirees have decided to settle overseas, and while the romantic allure of immersing in diverse cultures and picturesque landscapes is undeniably appealing, the decision to retire abroad for America’s retiree population is often rooted in more pivotal causes. The top reasons propelling a growing number of American boomers to seek retirement havens beyond the borders of the United States are the triad of quality of life, cost of living, and healthcare accessibility.
From a financial perspective, the statistics paint a compelling picture. A healthy 65-year-old couple contemplating retirement in the United States may find themselves requiring a hefty sum of $300,000 in savings. This figure does not even factor in the high costs associated with assisted living, averaging around $4,500 per month as reported by the Cost of Care survey by Genworth. Moreover, the United States consistently ranks among the most expensive places to live globally. Despite the median retirement savings for boomers standing at $152,000, a concerning one in five retirees claims they have yet to recover from the economic downturn of the recession.
The allure of retiring abroad gains further momentum when examining the healthcare landscape in the United States. Unquestionably, the U.S. leads in healthcare costs globally, creating a significant financial burden for retirees. In contrast to many industrialized nations boasting near-universal coverage, the U.S. relies on a non-universal, private insurance system. For this reason, many boomers are now preferring to retire outside the U.S. Moreover, even though 91.4% of Americans are covered by private healthcare insurance, a notable portion of the population remains without any coverage at all. The lucrative nature of the private healthcare insurance industry in the U.S. is underscored by its flourishing business within the country's 'dysfunctional' healthcare system, as outlined by The Economist. This dysfunctionality has contributed to the growth of several private insurance companies, perpetuating a situation where a substantial segment of the population is left grappling with inadequate or no coverage.
The situation gets even more concerning when the stark contrast between the financial gains of such private insurance companies and the struggles of the American people emerges. Major players such as UnitedHealth Group Incorporated (NYSE:UNH), Elevance Health, Inc. (NYSE:ELV), and The Cigna Group (NYSE:CI) are proudly reporting billions in profits. Specifically, UnitedHealth Group Incorporated (NYSE:UNH) achieved an astounding $22 billion in profits in the year 2023. Elevance Health, Inc. (NYSE:ELV), a prominent player in the US private insurance sector, has not only exceeded its target growth range of 12-15% but has achieved a remarkable compound annual growth rate of nearly 16% since 2018. Their operating revenue also surpassed $170 billion in 2023, which reflects substantial financial success within the private health insurance sector.
Additionally, the way these companies operate, especially in denying or underpaying for care, raises ethical questions about their commitment to the well-being of patients. In 2021, a staggering 53% of Anthem Blue Cross Blue Shield’s medical bills for the second quarter went unpaid, totaling $2.5 billion. The tactic of requiring pre-authorization for routine and lifesaving care introduced in early 2023 by UnitedHealth Group Incorporated (NYSE:UNH) is another illustration of how health insurers navigate the delicate balance between profits and patient well-being. This announcement to require prior authorization for colonoscopies, a crucial screening tool for colorectal cancer, highlights the lengths to which insurers go to control costs.
Enter the appeal of retiring abroad – countries that promise a higher quality of life at significantly lower costs. For retirees, this becomes an enticing prospect, offering the potential to stretch their pensions further and enjoy a lifestyle that might be financially burdensome in the United States. As we explore the top 20 places preferred by American boomers for retirement outside the U.S., it becomes clear that financial considerations are a driving force in the quest for a fulfilling and economically sustainable retirement.
Retiring Abroad: Top 20 Places Boomers Prefer To Retire Outside the US
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Methodology
In order to come up with a comprehensive list of the top 20 places boomers prefer to retire outside the US, we made a list of countries from multiple sources (1,2,3,4,5,6,7,8) and picked our top countries using a consensus method. We then filtered them based on cost of living and the healthcare index sourced from Numbeo. To rank these countries, we employed further measures that determine the overall quality of life which include, but are not limited to, the visa requirements, climate, and the percentage of English speaking population and allotted points for each measure. When we encountered a tie, an additional measure was considered (quality of life) to reasonably rank the countries for maximum accuracy. Places have been ranked in an ascending order from the lowest to the highest scores.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here are the Top 20 Places Boomers Prefer to Retire Outside the US:
20. Poland
Insider Monkey Score: 30
Poland’s free medical care guaranteed for all citizens is a standout feature when considering this history-rich European gem as your retirement destination. After a temporary economic slowdown, a rebound in the economy is expected with a projected growth of 2.6% in 2024. The ‘Productivity Strategy 2030’ reinforces the country’s commitment to fostering digitization and technological advancements. Along with a vibrant job market, it is a haven for budget-conscious retirees. Łódź, Zakopane, and Lublin are some of the best places to retire in Poland.
19. Italy
Insider Monkey Score: 30
Retiring to Italy allows retirees a taste of "la dolce vita," i.e. the sweet life. From indulging in pasta and exquisite wines to exploring the rich culture against breathtaking scenery, it is a fascinating place to retire to. Cities such as Palermo or Padova, known for their unique blend of lifestyle and affordability, offer the perfect retirement option on a budget as low as $1,700. With the country's comprehensive healthcare, including the NHS (National Health Service), retirees can benefit from a well-rounded retirement experience after becoming a citizen.
18. Dominican Republic
Insider Money Score: 32.5
While considering retirement, the Dominican Republic stands out as one of the best places to retire in the Caribbean. The country's appeal for retirees lies in its natural beauty, affordable living costs, and favorable climate. The country also boasts a rapidly growing economy, with a 4.9% real GDP increase in 2022, driven by a flourishing services sector, and a 24% growth in the hospitality industry. On the downside, the healthcare quality is lower as compared to the United States, necessitating private healthcare for expats.
17. Mexico
Insider Monkey Score: 33
Boasting the largest number of American expats globally, Mexico is one of the best places to retire around the world. Many cities allow retirees to comfortably live on $2,500 or less per month. The strength of the U.S. dollar against the peso presents favorable real estate opportunities, with rental apartments starting at approximately $400 in city centers, according to Numbeo. While safety concerns exist, especially due to violent crime, popular areas are generally secure. Mexico has made significant strides in healthcare, with a notable rise in the Healthcare Access and Quality index rating from 45.5 to 66.3 between 1990 and 2016.
16. Hungary
Insider Monkey Score: 35
Retiring to Hungary beckons with affordability, safety, and a wealth of amenities. As one of the cheapest retirement destinations in Europe, Hungary offers retirees a 38.8% lower cost of living compared to the United States, with rent being 73.8% more economical. The country's stunning landscapes, excellent healthcare, and a thriving expat community add to its allure. Permanent residency is attainable for pensioners demonstrating financial security, primarily through property ownership.
15. Ecuador
Insider Monkey Score: 36
Ecuador, lauded for its affordability, boasts diverse landscapes from Pacific Ocean beaches to the Andes mountains, Amazon Rainforest, and the Galápagos National Park. Cuenca, a UNESCO World Heritage Site, provides a genuine Spanish-colonial environment with cultural amenities, mild weather, and an affordable cost of living. Ecuador's infrastructure has improved significantly, including new airports and high-speed internet. Apart from being one of the best places to retire on a budget, the country's healthcare is globally economical. Specialist visits cost as low as $38 and hospital stays start from $60. The use of the U.S. dollar also eliminates exchange rate concerns. Recent legal changes have made it easier to establish residency, with affordable options like the Jubilado visa requiring a minimum income of $800.
14. Romania
Insider Monkey Score: 37
Nestled in southeastern Europe, Romania boasts the famed Transylvania, surrounded by the Carpathian Mountains, lush natural parks, and the inviting Black Sea Coast. The country's cost of living is remarkably 48.1% lower than the United States, making it an affordable retirement option outside the U.S. Romania's Global Peace Index stands "high", reflecting a safe environment. Locals are renowned for their friendliness towards Americans. While the country lacks a specific retirement visa, it allows legal stays for up to 90 days after which spring retirees will have to apply for a permanent residence visa.
13. Spain
Insider Monkey Score: 38
Retiring to Spain, a highly sought-after European destination, promises a blend of sun, sea, culture, and an alluring lifestyle. With a record 6.5 million foreign residents, Spain's popularity is on the rise, making it one of the best expat retirement countries. The American expat community has grown by 13%, contributing to an 88% surge in property sales to Americans from 2019 to 2021. The country offers diverse climates, a renowned healthcare system, and a rich cultural experience. While challenges like language barriers exist, the vibrant lifestyle, affordability, and top-notch amenities make Spain an enticing retirement haven.
12. France
Insider Monkey Score: 38
France offers retirees a high quality of life and top-notch healthcare at an affordable cost. According to International Living, a single person's living costs range from $2,000 to $2,483. The country provides a comfortable lifestyle with state-of-the-art hospitals, well-developed transportation, and a friendly retiree policy. The domestic rail, called SNCF, is easy to navigate and offers a 25% discount for senior travelers. Thanks to the tax treaty between the two countries there is no risk of double taxation in France.
11. Portugal
Insider Monkey Score: 39
Portugal's allure for retirees lies in its affordability, robust healthcare, and favorable tax incentives. A growing population of U.S. expatriates, numbering around 7,000, is drawn to the Mediterranean gem for its safety, friendly reputation, and diverse landscapes. With Portugal's Golden Visa program and the D7 visa offering accessible residency options, it is one of the top places boomers prefer to retire outside the U.S. Living costs, 40% lower than in the U.S., make it financially attractive, particularly outside major cities. The Non-Habitual Resident tax regime provides tax exemptions on foreign pensions and incomes, making Portugal a compelling retirement destination.
10. Slovenia
Insider Monkey Score: 39
With its picturesque landscapes, from historic castles to mesmerizing caves, Slovenia stands out as an unconventional yet enchanting retirement destination. Expats make up a small but growing community, with around 7,000 U.S. residents, doubling in the past few years. In contrast, the country's overall population is approximately 2 million. The cost of living in Slovenia is significantly lower than in the U.S., with consumer prices about 45% less and rent prices averaging 190% lower. The country's healthcare system, ranked 46th globally, provides quality care and is part of the EU's comprehensive health network. Slovenia, ranking among the safest countries, offers retirees a peaceful haven with scenic beauty and cultural richness.
9. Austria
Insider Monkey Score: 40
Ranked as the fifth-safest country globally in the Global Peace Index 2023, Austria boasts low crime rates, top-notch healthcare, and political stability. The nation's pristine landscapes, including lakes, rivers, and mountains, make it a paradise for outdoor enthusiasts. Despite recent economic challenges, Austria remains a strong economy, attracting foreign investment. The housing market faces challenges, but Austria's popularity as a retirement haven endures due to its safety, healthcare, and lower living costs compared to the USA. Retirees can benefit from the settlement permit, making Austria an excellent choice for a culturally enriching retirement experience. Villach, Graz, Bregenz are some of the best places to retire in Austria, where a retiree can live on an average $2,000 per month.
8. Malaysia
Insider Monkey Score: 40
For boomers looking to retire outside the U.S. in an English-speaking country, Malaysia is a top destination. Ranked as the 19th most peaceful nation globally by the Global Peace Index 2023, it offers safety and a 57.5% lower cost of living than the US. It is possible for an individual retiree to live a comfortable retirement on $1,500 per month. The retirement visa, Malaysia My Second Home (MM2H), provides a 10-year multiple entry visa, with an option to withdraw funds after one year for various purposes. Malaysia's tropical climate, cultural diversity, and robust infrastructure contributes to its appeal. It's high-quality yet affordable healthcare, including screenings starting at $60, ensures the country offers a fulfilling retirement experience at a fraction of Western costs.
7. Greece
Insider Monkey Score: 44
Consider retiring to Greece, where a surge in interest for the Residency by Investment scheme reflects its growing appeal. The program, complementing the successful Golden Visa initiative, has attracted over 9,000 investors globally. Greece's comprehensive legislative tax framework aims to attract new residents and investments, resulting in over 1,000 applications from retirees and professionals. With real estate prices and living costs among the lowest in the EU, it is is one of the top places boomers prefer to retire outside the US.
6. Czech Republic
Insider Monkey Score: 45
Embark on a distinctive retirement adventure in the heart of Europe by considering the Czech Republic as your ideal destination. This charming country, adorned with old-world castles and medieval towns, is emerging as a sought-after haven for retirees. With a low cost of living, a growing expat community, and Prague's charming architecture attracting over 2.36 million visitors annually, the country stands out as a retirement destination. It is ranked 8th on the Global Peace Index, ensuring a secure retirement as well. It also offers one of the best healthcare systems, ranked 8th in the world. However, expats are advised to buy private healthcare here. Affordable public transport, cheaper apartments than other European capitals, and a well-regarded healthcare system make it an enticing choice for retirees.
