- Some older Americans said they moved abroad because they couldn’t afford a comfortable retirement in the US.
- They cited high costs for medical insurance and housing as reasons for their moves.
- Four retirees who moved to Costa Rica, Ecuador, and Spain shared how moving helped their wallets.
Amy Glenn felt like she had no choice but to leave the US.
Glenn, 72, said she couldn’t afford life in Texas after years of teaching political science and economics at a university and over a decade of caring for her parents full-time. She feared her $1,200 in Social Security wouldn’t be enough to live comfortably in the US.
In January 2023, she paid $165,000 for a house in Costa Rica. Each month, she spends $300 on groceries, $70 on electricity, and $80 on medications and doctor visits.
“I would have never bought this much property in the US, and that takes a huge weight off my mind because I know that I’m not going to be homeless,” Glenn said. “The financial stress is gone.”
Over the last few years, dozens of American expats have told BI their reasons for moving abroad. Many, including retirees, have mentioned higher US living costs as a major motivator for relocating to relatively cheaper countries like Mexico, Ecuador, and Spain.
Bureau of Labor Statistics data shows that consumer prices have risen by over 23% since 2020. Inflation typically hits older Americans harder because they often depend on fixed incomes from retirement savings or Social Security.
Over 760,000 Americans abroad receive Social Security benefits yearly. Data from the Social Security Administration shows that Americans’ average monthly Social Security benefit was $1,976 as of December 2024.
“We have a substantial number of people who don’t have sufficient retirement savings to supplement their Social Security,” David John, a senior strategic policy advisor at AARP, previously told BI. “Social Security is it for a substantial number of people. That means, essentially, that they may not have the kind of retirement that they dreamed of.”
The predicament has left many older Americans considering moving abroad as the key to a fulfilling retirement.
Retirees want to live where costs are low and quality of life is high
Some older Americans have the financial means to live in the US but realize it may not be the best investment or align with the lifestyle they envision long-term.
Shawna Lum, a Spain-based relocation coach who has helped retirees move abroad, told BI that lower living costs are especially appealing to retirees on fixed incomes.
“Affordability is a huge reason my clients move abroad, especially retirees on fixed incomes,” Lum said. “Many of them find that in countries like Spain, Portugal, Italy, France, Mexico, Costa Rica, Colombia, and Panama, they can live comfortably on their Social Security check — something that just isn’t possible for them in the US.”
Take Sandy Berenhaus, a clinical audiologist who retired from her consulting practice in 2024 at age 73. She had substantial savings and investments spread across multiple assets.
Although Berenhaus could have continued living in her $4,000-a-month luxury apartment in New Jersey — a two-bedroom, two-bathroom unit with its own indoor garage and a community pool — she knew that relying on Social Security as her main income might make retirement in the US financially challenging.
“My savings and investments might be viewed as ‘substantial’ by some but clearly stood the risk of being significantly depleted over time without making significant changes to my lifestyle, not to mention the occurrence of unforeseen emergencies,” Berenhaus told BI. She added, “I’m not a millionaire. If I lose my Social Security, that’s a big deal.”
Beyond finances, Berenhaus said the divisive politics in the US began to turn her off. She wanted to live in a place where she felt she could truly enjoy life.
After consulting with Lum this year, Berenhaus packed up and moved to Barceloneta, a seaside neighborhood of Barcelona, Spain. She lives in a two-bedroom sublet with beach views and pays $2,000 monthly.
“Barceloneta is the perfect starting point for my next life chapter,” she said. “Living here allows me to pursue many personal passions at a fraction of NYC prices. I have music, dance venues, and beautiful beaches at my doorstep. Plus, there are friendly locals and a huge array of similar-minded expats from around the world.”
Healthcare costs have pushed some older Americans out
Stephen Vargha, now 66, left his job at a North Carolina television station in 2020. He expected to work for a few more years before enjoying his retirement in the mountains, where he bought a home in West Jefferson.
However, Vargha struggled to find work. Despite being open to a pay cut, he said he received “not a single phone call” when applying for jobs, which he said was worrisome. While doing the math for his retirement, he and his wife discovered their monthly health insurance premium of $1,930 — not including deductibles — would cost about $150,000 over the next seven to eight years.
Vargha and his wife decided the best action plan was to leave the US and move abroad, where they could better afford daily expenses and healthcare. He took his monthly Social Security income of $2,400 and relocated to Cuenca, Ecuador. He receives a net pension of $570 after taxes. He and his wife had about $850,000 in combined assets before leaving.
In Cuenca, a city in the Andes mountains, they bought a 1,200-square-foot condo for about $150,000. Vargha said each month, they spend $177 on health insurance, $22 on property taxes compared to $285 in the US, and $39 on homeowners’ insurance compared to $145. Groceries are somewhat similar to the US, about $600 monthly, and they devote about $300 to restaurants and entertainment.
“We’re able to do more than we ever could in the US when we were both working,” Vargha said. “We ate out maybe once a week because that was all we could afford. We’re now eating out eight to 10 times a month.”
Brenda Price, 59, also said healthcare costs also pushed her to move abroad from Minnesota.
Price worked in international finance for most of her career and retired early at 55. She grew tired of paying over $1,000 in insurance premiums per month on top of an annual deductible of $10,000, in addition to $2,200 monthly plus utilities for a studio apartment.
“We would have been able to make it work, but it would have been a very different lifestyle because the costs are so much lower than they would have been in the US,” Price said. “We were limited, and we couldn’t spend much.”
Price and her husband moved to Valencia, Spain, two years ago. They rent a 1,200-square-foot apartment with a balcony and terrace for $1,500 a month.
She said groceries cost 30% to 40% less, while health insurance is about $200 monthly. She said public transportation is about 40 cents a ride, while a museum visit runs her $2. She estimates they spend about $200 monthly on activities and about $300 on Spanish classes. She’s also enjoyed the cost of travel, once flying to Morocco for about 80 euros, or $83.
“I am very much a budgeter, and I know what we have to spend and what we should spend,” Price said. “We’re very happy here, and we have no plans right now to leave.”
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