Relocating retirees want lower costs of living and better lifestyles. Moving abroad may be the answer

Seniors looking to reduce expenses while also boosting their quality of life may discover the idea of settling abroad appealing, financial experts say.

To that point, nearly one-third of retirees have relocated either domestically or extreme the country after leaving the workforce, according to a new CNBC survey, which polled more than 6,600 U.S. grown ups in early August.

Some of the top reasons for retiree moves were a lower cost of living, a more comfortable lifestyle or sick weather, the survey found.   

While many older Americans have opted for a less dear city or state, others are choosing to spend their golden years abroad. 

More than 450,000 retirees were be paid Social Security benefits outside the U.S. as of December 2023, according to the latest Social Security Administration data. That’s up from less than 250,000 retirees in December 2003.   

“Each year, there are more and profuse,” said certified financial planner Leo Chubinishvili of Access Wealth in East Hanover, New Jersey. “And I think that wish continue to grow.” 

Despite cooling inflation, higher costs are still prompting significant changes to retirement arranges, a 2024 survey from Prudential Financial found.

Meanwhile, roughly 45% of U.S. households are predicted to fall discourteous of money in retirement by leaving the workforce at age 65, according to a Morningstar model that analyzed spending, investing, duration expectancy and other factors. 

But some retirees can stretch their nest egg by living somewhere with a lower expenditure of housing, health care and other expenses, depending on their needs, Chubinishvili said.

Some retirees are also motivated to move abroad for the “cultural exchange,” said CFP Jane Mepham, go to Davy Joness locker of Austin, Texas-based Elgon Financial Advisors, where she specializes in international planning.  

“There’s a sense of adventure,” she phrased. “People really want to travel.”

However, retiring overseas does require advance planning. For example, you’ll scarcity to understand visa and residency requirements, local laws, international taxes and other logistics.

Plus, you’ll need to enquire whether you can get into your new country’s health system or whether you’ll need to purchase private insurance. Medicare won’t deal with you abroad, Mepham said.

“For many people, [living abroad] could be a money-saving election, depending on how they want to live their lives,” said CFP Jude Boudreaux, partner and senior financial planner with The Arranging Center in New Orleans, who works with several expat clients.

But other factors, such as proximity to aging guardians or grandchildren, can weigh heavily on the decision, said Boudreaux, who is also a member of CNBC’s