In recent years, a growing number of Americans have been drawn to the idea of retiring outside the United States. Motivated by the allure of sunshine, a lower cost of living, or simply a desire for a change of scenery, many retirees are seriously considering—or have already embarked on—a permanent move abroad. While official statistics are hard to come by, anecdotal evidence suggests that this trend is gaining momentum, especially in the wake of recent political and economic shifts.

A Post-Election Surge in Interest

Companies and organizations that specialize in assisting Americans to move abroad have reported a significant increase in inquiries and web traffic, particularly following the 2024 election. Live and Invest Overseas (LIOS), a leading publication in this niche, saw a 250% spike in web traffic in the days following the election. According to Kathleen Peddicord, founder and publisher of LIOS, this surge is not just a fleeting trend. "I don’t think this is going to fade away," she says. "People are asking very practical questions about residency options, tax burdens, and lifestyle preferences."

Retirees make up about 80% of LIOS's audience, and the publication's annual list of the 10 Best Places to Retire is one of its most-read and highly anticipated reports. Similarly, International Living, a monthly magazine and website focused on living abroad, has also seen a marked increase in interest. Executive Editor Jennifer Stevens notes that many retirees are concerned about the "social situation" and "economic implications" of recent policies, while others are excited about potential tax breaks and the prospect of stretching their income further abroad.

Financial Realities Driving the Exodus

The decision to retire abroad is often driven by financial necessity. In the US, skyrocketing costs for housing, healthcare, and everyday living have put a strain on retirees' savings. Almost half of US families have no retirement account savings, and over 17 million Americans aged 65 or older are considered economically insecure. Moving to a country with a lower cost of living can offer significant financial relief.

Sophia Titley, editor-in-chief of LIOS, explains that retirees can "invert their budget" by moving to a place where expenses are lower. For example, in some countries, you might not need a car, allowing you to redirect that budget toward discretionary spending. However, moving abroad involves more than just financial considerations. Retirees must also navigate complex issues like residency visas, healthcare, and tax obligations.

Key Considerations for Retiring Abroad

1. Residency Visas: Not all countries are equally welcoming to retirees. Some, like Panama, offer attractive visa programs specifically designed for foreign retirees. Others may have more restrictive requirements. Retirees need to research which countries offer residency permits that align with their financial means and lifestyle preferences.

2. Healthcare: Access to affordable healthcare is crucial. While some countries, like Spain and France, require health insurance for visa approval, others offer more affordable options. It's important to research healthcare systems thoroughly before making a move. Retirees receiving Medicare should also understand the implications of moving abroad, as Medicare generally does not cover healthcare costs outside the US.

3. Taxes: Tax obligations can vary widely depending on the destination. Some countries offer tax advantages to retirees, while others may have more complex systems. Understanding the tax implications is essential for maintaining financial stability.

Top Destinations for Retirees in 2025

1. Panama: Topping International Living's Annual Global Retirement Index, Panama offers a straightforward visa process, excellent quality of life, and good value for money. Its retiree visa, known as the Pensionado Visa, provides significant benefits, including discounts on airfare and prescription medications. Panama's modern healthcare system also earns high marks.

2. France: Known for its fine dining, museums, and beautiful landscapes, France also offers a top-notch healthcare system subsidized by the government. Outside Paris, living costs can be surprisingly affordable. The US-France tax treaty allows American retirees to continue contributing to tax-advantaged retirement accounts, providing additional financial benefits.

3. Malaysia: Ranked seventh on International Living's 2025 Global Retirement Index, Malaysia offers excellent value for money. With low living costs, modern healthcare facilities, and a rich cultural tapestry, it's an attractive option for retirees looking to stretch their budgets. The Malaysia My Second Home (MM2H) program provides a renewable visa for retirees over 50 years old.

4. Spain: With its excellent weather, high-quality healthcare, and relatively low cost of living, Spain has long been a popular destination for retirees. Spanish cities like Valencia, Malaga, and Alicante offer a variety of lifestyles, from cosmopolitan hubs to small coastal villages. However, retirees must navigate Spain's complex tax system and consider the country's language barriers.

5. Mexico: Proximity to the US, affordability, and a slower pace of life make Mexico a top choice for retirees. Thriving expat communities and familiar services like Netflix and Amazon ease the transition. Mexico also offers tax advantages, including no inheritance or wealth tax. However, retirees should be aware of safety concerns and potential tensions in areas with large expat populations.

Making the Move

Retiring abroad is a significant decision that requires careful planning. From understanding visa requirements to researching healthcare options, retirees must navigate a complex set of considerations. However, for those seeking a change of scenery or financial relief, the benefits can be substantial.

As more Americans explore the possibility of retiring abroad, the trend is likely to continue. Whether driven by financial necessity or a desire for adventure, retirees are finding that the world offers many attractive options beyond the US. With the right planning and research, the dream of a golden retirement in a new country can become a reality.