Want to retire abroad? Read this instead of the usual ‘best places to retire’ lists.
6 min read
Every year, various publications reveal new “best places to retire abroad” lists. Providing snapshot overviews and gorgeous photos of top expat countries, these articles are wildly popular whether readers are seriously considering moving to a foreign country or just in the “wouldn’t it be nice…” camp.
The publications state that their lists are compiled based on a variety of factors such as cost of living, quality of life, climate, healthcare, and immigration processes.
Read MarketWatch’s ‘Where Should I Retire?’ column
Truth or fiction?
As much fun as it is to scroll through these lists, how accurate is their information? We have a website that assists prospective expats on retiring abroad, and can tell you the answer to that question ranges from rock-solid to downright wrong.
For example, a recent story raves about retiring to New Zealand. It’s a safe, easygoing country. The landscapes are jaw-droppingly beautiful. The food and wine are off the charts.
Reality check: You need to invest almost $500,000 in the country and prove you have another boatload of income for the privilege of staying there a maximum of two years. That’s more of an ultra-expensive, long vacation than a retirement.
What about neighboring Australia, which ranks high on the same list? Um, they quit issuing retirement visas in 2018.
Mexico is often included because of its low prices and proximity to the U.S. We live in Ecuador and have spent months visiting various locations throughout Mexico, and we completely understand the appeal.
But, oops, the Mexican government recently raised income requirements for permanent residency to at least $7,300 per month, far beyond what most retirees can prove.
Read: The No. 1 thing the ‘best’ places to retire have in common — and it’s not affordability
What to do?
Let’s face it, everything on the internet is not true. There is plenty of fake news, but this doesn’t always mean someone is intentionally attempting to mislead readers. What is written could be an honest, if misguided, opinion. As evidenced in the examples above, on the subject of retirement abroad we have found that inadequate research is often the culprit.
Regard these lists as food for thought rather than definitive documents. If you are really contemplating moving to another country, you have to create an essential personal list of your own.
Wish list and deal breakers
Ask yourself what you want to wake up to every day in your new home abroad. Make a wish list of everything you can think of, then rank your items from most to least important.
Also, write down your deal breakers — any factors that automatically rule out a destination regardless of the positive attributes. For instance: the unavailability of required prescription medications.
Taking the time for this self-examination will help you zero in on countries that best match your interests and desires — and steer you away from “vacation mentality,” where you gravitate toward places that you have enjoyed visiting for short periods.
Trust us, minor aggravations you put up with for a week or two (spotty internet, mosquitoes, no potable water) can balloon into “what-was-I-thinking” issues when present 24 hours a day, 7 days a week, 365 days a year.
Read: 9 places to retire where you can go back to college practically free
The nitty-gritty of permanent residency
Armed with your own shortlist of countries, you are now ready for the nitty-gritty of researching how to gain permanent residency in each one. Simply Google “retirement visa requirements in [this country].” You will find consistencies, like proof of health insurance and a background check from your home country.
Pay particular attention to two important factors: 1) how much monthly income you must prove, or the amount of money you need to invest in the country with a CD or property purchase, and 2) if there is a transition from temporary to permanent residency, look for unacceptable travel restrictions that may apply.
Read: These three struggles sent this retired couple back to the U.S. after a move overseas
‘Tried and true’ affordable retirement countries
The shifting sands of government policy and cost of living sometimes make the countries on those “best places to retire” lists a moving target.
Mexico was always a top pick until the dramatic increase in income requirements last year. Portugal, the new kid on the block, is currently suffering from sticker shock in expat hot spots like Lisbon due to an acute housing shortage.
But year after year, there are a handful of countries that consistently show up. Though scattered around the globe with different geographies and climates, they are all affordable, offer a high quality of life, and have established expat communities. The income requirements included below are accurate for 2024.
Ecuador
We’ve got to put in a plug for our country of residence. With miles of Pacific coastline, Amazon rainforests, the Galápagos Islands and the Andes mountains, Ecuador is one of the most biodiverse countries in the world and a nature lover’s dream. It is a great choice for retirees on a budget, too.
According to Numbeo, which tracks the cost of living around the world, you would need over $6,700 per month in Atlanta for the same standard of living available for $2,300 a month in Cuenca, our hometown. Since Ecuador’s official currency is the U.S. dollar, there is no concern about currency fluctuations.
Minimum monthly income requirement for residency: $1,380.
Colombia
Think Colombia is a dangerous country ruled by ruthless drug lords? Think again. That was over 40 years ago, and the government has worked overtime to repair its old image.
Medellín in particular has become an expat magnet for retirees and digital nomads alike, with a low cost of living similar to Cuenca’s. It is a modern city with excellent public transportation, a near-perfect climate and outstanding cuisine.
Minimum monthly income requirement for residency: $1,000.
Panama
Warm year-round climate, proximity to the U.S. (only a three-hour flight to Miami) and availability of many U.S. products make Panama an easy choice for frugal retirees seeking a North American lifestyle.
Panama’s pensionado program is an added attraction, offering numerous discounts on products and services, plus tax exemptions on imported household goods and vehicles.
Minimum monthly income requirement for residency: $1,000.
Read: I never expected to retire to Panama — but we are living ‘very comfortably’ on $1,200 a month
France
What’s not to love about France? The food, wine, culture and beauty are off the charts. But it’s so expensive, right?
In Paris and the French Riviera, absolutely. Outside those high-end tourist destinations, however, the cost of living is surprisingly affordable. For example, Numbeo calculates that Atlanta is over 34% more expensive than Bordeaux.
France’s healthcare system is one of the highest ranked in the world as well. And the continent’s reliable train system makes visiting anywhere in Europe easy.
Minimum monthly income requirement for residency: $1,900.
Thailand
If your dream retirement includes a laid-back lifestyle, tropical weather, rich cultural experiences and breathtaking landscapes, look no further than Thailand.
Don’t forget about the food. Thai cuisine includes lots of fresh vegetables and lean protein, making many of the typical dishes healthy and delicious.
Numbeo states the cost of living in Atlanta is almost twice as high as in Bangkok. With two international airports and plenty of low-cost carriers, Bangkok is an outstanding hub to explore Southeast Asia.
Minimum monthly income requirement for residency: $1,900.
What’s next?
Once you’ve identified your top relocation choice and can satisfy permanent-residency requirements, it’s time to book a scouting trip. No amount of online research can replace actually putting boots on the ground.
Spend two weeks (or more if possible) picking the brains of expat residents, visiting grocery stores and pharmacies, and perhaps meeting with an immigration attorney.
Wander through different neighborhoods. Eat at local restaurants. Look for red flags that weren’t revealed in your research. When the trip is over, you should know if the place truly speaks to your heart.
More from Edd and Cynthia Station:
We spent 10 amazing weeks in Europe living on just our Social Security budget. Here’s how we did it.
Edd and Cynthia Staton are experts on expat life in retirement. They have appeared on network television and are regularly featured in the media. They have written three books about their adventures and created a program to educate others on retiring abroad.
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