Retiring Abroad: More Americans Seek Lower Costs and a New Lifestyle

A growing number of Americans are considering, and increasingly making, the move to retire overseas, driven by rising costs in the United States and a desire for a different lifestyle. While pinpointing exact numbers is difficult, approximately 700,000 Americans currently receive Social Security benefits while living abroad, a more than 20% increase in the last twelve years, according to the Social Security Administration.1

The Push Factors: Why Retirees are Leaving the US

“The rising costs for retirees in the US are motivating people to look beyond our borders,” explains Jennifer Stevens, Executive Editor of International Living’s 2026 Annual Global Retirement Index.1 The potential for significant savings, particularly in healthcare, is a major draw. Beyond finances, retirees are also seeking a slower pace of life, different cultural experiences, and, increasingly, a more stable political environment.

According to an International Living survey, over 60% of Americans report that the current political climate in the US has made them more inclined to move abroad.1 A Gallup report indicates that roughly one in five Americans would like to permanently relocate to another country if they could.1

Real-Life Experiences: The Woodruffs’ Story

Jeff and Joch Woodruff exemplify this trend. After years of fond memories and research, they sold their home in Sacramento, California, six years ago and relocated to northern Portugal. They initially spent six months in a studio apartment in Porto before purchasing a condo near the Atlantic Ocean.1 “We’ve adopted cats, made rich friendships, and have built a community,” Joch shared. Their monthly expenses are now approximately one-fourth of what they were in California.1

Top Retirement Destinations

Several countries consistently rank high as desirable retirement locations. According to Live and Invest Overseas, some of the top choices in Europe include Portugal, France, Greece, Spain, and Italy.1 Globally, popular destinations include:

• Boquete, Panama
• Algarve, Portugal
• Puerto Vallarta, Mexico
• Gascony, France
• Crete, Greece
• Tarragona, Spain
• Santa Familia, Cayo District, Belize
• Hua Hin, Thailand
• Kotor, Montenegro
• Las Terrenas, Dominican Republic
• Sardinia, Italy
• Mendoza, Argentina

Currently, the most common countries for American retirees receiving Social Security benefits are Canada, Mexico, the United Kingdom, Germany, Poland, Italy, Greece, Portugal, and Spain.1

Greece Takes the Top Spot in 2026

International Living’s 2026 Global Retirement Index has named Greece as the top locale for retirement, surpassing Portugal and Spain.1 This ranking is attributed to Greece’s accessible visa options, including a Golden Visa requiring a €250,000 investment, a 7% tax rate on foreign pension income, and a generally affordable quality of life. Living comfortably in Greece is estimated to cost between $2,500 and $3,200 per month, with private health insurance around $1,200 annually.1

Important Considerations Before Making the Move

Jennifer Stevens advises prospective expats to carefully consider their priorities and lifestyle preferences. “What — and be honest with yourself — are you really looking for?” she suggests. She recommends spending several months in a potential location to assess its suitability, connecting with local expats, and understanding the cost of living.

For those planning to work remotely or seek local employment, it’s crucial to research employment laws and potential job market competition. International tax implications should also be carefully considered, as both the US and the host country may impose taxes on income. The foreign earned income exclusion for 2026 is $132,900 per person.1

Financial Incentives and Visas

Several European countries offer incentives to attract foreign residents, including tax breaks and renovation grants. Ireland, for example, provides grants of up to €70,000 for refurbishing vacant properties.1 Portugal’s D7 Visa is a popular option for those with passive income, requiring a minimum monthly income of $1,086 and a clean criminal record.1

For more information, the US Department of State offers resources for those considering retirement abroad: Retirement Abroad resource on Travel.State.gov.