Money, or the lack of it, is a pressing issue for many retirees in the US. Even before we reached our current state of economic insecurity, the rising cost of living had been leaching savings from families at an unprecedented rate. The National Council on Aging (NCOA) released a report last summer showing that more than 17 million older adults age 65+ are economically insecure, with incomes below 200% of the federal poverty level. The Economic Policy Institute reports that ever since the shift to relying on 401(K)s, almost half of US families have no retirement savings, at all.
Many retirees, looking for ways to stretch their savings and make a fixed income less stifling, are considering living abroad. Retiring overseas for a lower cost of living can be a challenging adventure, but for many it is one well worth uprooting for. The hardest part, some experts argue, is narrowing down your options.
Some of the aspects you’ll want to compare before moving are logistical, such as the costs of housing, healthcare and transportation, as well as the visa requirements the country may have for people looking to work (or not work). Other considerations are more fluid, such as climate, community values, language barriers, and overall friendliness to American expats.
Helpful Guides:
International Living recently updated its Annual Global Retirement Index, a tool designed to be helpful for visualizing and prioritizing your options abroad. For over 30 years International Living has compiled its report drawing from first-hand experiences of correspondents and contributors who actually live in these global retirement havens in order to offer real metrics people will want to compare, like tax laws, visa requirements, housing costs, and community values.
Since 2008, Live and Invest Overseas (LIOS) has also been demystifying the process of retiring abroad. In a recent article for CNN Travel, Sophia Titley, LIOS editor-in-chief, explained the appeal: moving to a country with a much lower cost of living offers an opportunity to “invert your budget, so you could take what you’re currently spending on, say, transportation, and move to a place where you don’t need a car, for instance, and use that budget for discretionary spending.” Using criteria similar to International Living, LIOS has also created a Top 10 Places to Retire Abroad List.
Where the Guides Agree:
Considerable consensus exists between the two publications, with both agreeing on 6 out of 10 retirement locations, all but one of which are in continental Europe: Italy, Greece, Spain, France, Portugal, and Mexico. Many of them share similar appeals; choices between bustling cities and scenic countryside (and easy travel options between the two), mild climates, accessible quality healthcare, and affordability with a high quality of life. For example, here is what Leena Horner, a contributor to International Living’s guide, wrote about retiring in Corfu, Greece:
“Outside of popular tourist spots like Athens and Santorini, places like Corfu make living comfortably on a modest budget entirely possible. For example, I spend around €60 – €80 ($78 – $104) at the local market each week, picking up fresh vegetables, fruits, meat, and cheeses for wholesome meals. Dining out is equally affordable; a meal at a local taverna with appetizers, a main dish, and wine usually costs around €15-€20 ($20 – $26).”
She also notes that the Corfu real estate market is equally appealing, with a variety of dwelling options available for affordable prices: “A one-bedroom apartment typically costs between €400 and €600 per month,” and small homes in the countryside range between €80,000 and €160,000. When you combine those perks with Greece’s excellent, affordable public healthcare system and flexible visa options, it seems almost silly not to start packing immediately.
Top image source: majaiva from Getty Images Signature, via canva.com.
