With the rising costs of living in the U.S., many aging residents are considering retiring in another country as a viable option. Former U.S. residents, also known as expats, are finding that this choice provides a solution to the high expenses of living and healthcare in their home country. However, while the idea sounds appealing, there are still challenges to overcome in foreign countries.
For some retirees, the appeal lies in finding a slower pace of life, a sense of community, and a pleasant climate. One such example is Jeff Natale, a 68-year-old living near the sunny shores of Playa del Carmen in Mexico.
Natale, who runs JMN Consulting LLC and authored An Expats Guide to Living in Playa del Carmen, made the decision to move after being tired of harsh winters and urban living in New York and New Jersey. His inspiration to live in Mexico stemmed from a trip to the Yucatan peninsula in 1982, where he fell in love with the culture and slow-paced lifestyle.
After a series of life-changing events, Natale turned his focus back to Mexico, eventually purchasing a condo in Playa del Carmen in 2014. In 2019, he made the move to Mexico, bidding farewell to the U.S. with his possessions and his pet parrot.
According to expat resource InterNations, countries like Mexico, Panama, Colombia, and Brazil are popular choices for American retirees. In Europe, Spain, the Philippines, and Thailand are also considered top expat destinations.
The number of Americans receiving Social Security benefits while living abroad has increased significantly in recent years. As of December 2021, over 443,000 retired workers were collecting benefits outside the U.S., totaling $7.5 billion in payments.
For individuals like Mike Jansen, retiring in the Philippines offers a mix of cultural appeal and lower living costs compared to the U.S. Jansen, who has lived in the Philippines for 15 years, appreciates the affordable living and the cultural environment.
When it comes to healthcare, Natale notes that Playa del Carmen offers good medical services at affordable rates, particularly for residents. While Mexico’s public healthcare system is cost-effective, private healthcare is considered the premium option with better infrastructure and English-speaking staff.
Despite the overall affordability of healthcare in Mexico, private insurance can be expensive. Natale mentions that if needed, he can access top-notch healthcare in larger cities like Cancun, Merida, or Mexico City.
Insurance costs in Mexico are determined by age and pre-existing conditions, making it unaffordable for individuals like myself at the age of 68. However, Mexico has become a popular destination for medical tourism, with many U.S. residents seeking healthcare abroad. In fact, the number of Americans traveling for healthcare has more than doubled in the past decade.
Prathyusha Itikarlapalli, who works with a company partnering with dental clinics in Mexico, notes that many Americans opt for treatments like implants and restorations in Mexico due to the cost savings and convenience. Dental work in Mexico can offer significant savings compared to the United States, making it an attractive option for many.
Financial concerns are a major factor in retirement planning, with a significant portion of households struggling financially. Many retirees are finding it increasingly challenging to afford retirement in the U.S., leading some to consider relocating abroad for a lower cost of living and better quality of life.
While retiring abroad offers many benefits, there are challenges to navigate, such as understanding and integrating into local legal systems. Legal professionals like Michael Hurckes assist clients with retirement planning abroad, ensuring compliance with foreign laws and minimizing financial burdens.
Retiring abroad requires careful consideration of residency requirements, tax obligations, and legal implications. Despite potential hurdles like language barriers and bureaucratic challenges, many retirees find fulfillment and acceptance in their new communities abroad.
With the grace of God, I hope to always remain here.
