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Attracted by either the pleasant weather or more affordable living costs, an increasing number of older Americans are opting to spend their retirement abroad. They believe this move could align more closely with both their financial goals and personal preferences for lifestyle.
Although precise figures haven't been released, businesses and groups that help individuals relocate overseas have experienced a significant surge in website visits and inquiries following the election during recent months—evidence some interpret as an indication of "growing momentum" or a developing trend where numerous Americans, particularly those who are retired, are contemplating or even initiating a permanent relocation abroad.
I don't believe it will simply disappear as it has in all prior elections I've covered," said Kathleen Peddicord, founder and publisher of Live andInvest Overseas, to DIWIDATravel. "This issue isn't likely to vanish. People are raising significant concerns comparing one country with another regarding their residency choices and potential tax obligations. These aren't idealistic queries; they're highly pragmatic.
Founded in 2008, LIOS releases frequent articles covering topics related to living overseas, including issues like taxation and healthcare. According to Peddicord, website visits surged approximately 250% after the election, and this ongoing engagement has contributed significantly to "our most substantial increase in readership ever."
Peddicord mentioned that around 80% of the LIOS audience consists of retirees, encompassing both those who have already retired and individuals preparing for retirement. The group releases an annual list each year. 10 Top Locations for Retirement Is one of the publication’s “most-read and eagerly awaited” reports.
International Living , a monthly magazine and website dedicated to life overseas, has experienced a notable rise in inquiries and web traffic. This trend began prior to the election, as reported by Executive Editor Jennifer Stevens to DIWIDATravel. The publication’s insights are supported by data analysis. Annual Global Retirement Index is influenced by elements such as accommodation, visa policies, cost of living, and healthcare, along with insights provided by over 200 local editors and correspondents.
During the latest annual conference of the publication, held in Las Vegas in October 2024, Stevens mentioned that she had conversations with numerous readers, such as retired individuals, who expressed increasing worries regarding "the Trump policies causing discomfort for residents within the U.S." They also discussed issues like the current social climate in America and how tariff changes might affect the economy under the newly elected leadership.
Stevens mentioned that alongside this concern, she observed an enthusiasm among people regarding possible tax cuts and increased disposable income—benefits that might extend beyond U.S. borders as well. "People are exploring methods to broaden their international investments or utilize those funds overseas," she explains.
The scarcity of money remains a significant concern for numerous American retirees today. The rising expenses related to housing, rentals, and health care are draining their savings at a faster rate compared to earlier generations—indeed, this trend is quite pronounced. nearly half of American households do not have any savings in a retirement account.
Meanwhile, more than 17 million Americans A third of those aged 65 or older—about one in three—are deemed economically insecure, with their income levels falling at 200% or higher above the federal poverty line.
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,” Sophia Titley, LIOS editor-in-chief, tells DIWIDATravel.
Aside from their financial situations, which typically revolve around predetermined budgets, retirees must navigate particular requirements when considering relocation overseas. Primarily, they need to determine if they are permitted—or possess the resources—to retire in their chosen country. For instance, certain nations might provide appealing job opportunities for digital nomads—but these may be less accessible for individuals who are no longer employed.
You should focus on locations where obtaining a residency visa is feasible," Titley advises. "That seems like the most logical starting point. Assess your current situation, financial capabilities, various eligibility criteria, and consider areas that provide residency options for regular individuals.
An important factor to consider is assessing your eligibility and understanding the expenses related to healthcare and health insurance in your new location. It’s advisable to conduct comprehensive research ahead of time since certain nations, such as Spain and France, mandate having health insurance as part of their visa approval process.
Peddicord points out that "the positive aspect... is that regardless of where you go, healthcare will be more economical since it costs more in the United States compared to anywhere else—not just for healthcare itself, but also for health insurance."
Ultimately, retirees enrolled in Medicare – which is a federal health insurance program designed for Americans aged 65 and above (as well as certain younger people with disabilities) – ought to ensure they thoroughly research how relocating overseas could affect their eligibility benefits.
Medicare generally won’t cover healthcare expenses except in certain cases. outside of the US However, specialists suggest maintaining coverage if feasible, as it can provide a safeguard and a feeling of security in case of significant health issues or injuries.
“Maintaining this option keeps things flexible,” says Peddicord. “If needed, you could return to the U.S., where you might have family and a stronger support system during such an ordeal. On the other hand, if you've surrendered your Medicare, rejoining the program isn’t always easy.”
Although visas, taxation, and health care rank as some of the key factors when relocating overseas, retirees ought to also evaluate various destinations—along with their smaller regional areas—to ensure they match their desired way of life.
Below are five nations ideal for retirees in 2025. (While this compilation mainly caters to American retirees, it includes useful broad details as well.)
Panama
This nation in Central America led International Living’s list. Annual Global Retirement Index As the top choice for retiring in 2025 globally, thanks to its simple visa procedures, high standard of living, and great cost-effectiveness.
Panama offers "possibly the finest retirement visa program globally," according to Stevens. "They recognized early on that making it simple for international retirees to move there could attract them to spend their wealth within Panama’s borders. As such, obtaining and renewing a visa in Panama is straightforward, offering excellent perks for retirees."
These perks encompass reduced rates on flights, theater tickets, and various others. The contemporary healthcare system in Panama garners acclaim as well—aside from being cost-effective for medical services, permanent residents who qualify as pensioners (age 60 for men, 55 for women) get a 20% discount on prescriptions.
Key considerations: In Panama, the bar for its passive income requirement isn’t very high: you need at least a monthly income of US $1,000 from sources like a government initiative, including Social Security, or through payments from a private company. For each additional dependent, this minimum amount increases by an extra $250 every month.
English proficiency levels Are quite minimal throughout the nation, making it particularly beneficial to have at least a basic understanding of Spanish.
How to execute the transition: The website for the Embassy of Panama explicitly mentions in English on its website To apply for a retiree visa, often referred to as the Pensionado Visa, certain requirements must be met. Keep in mind that your application needs to be handled by a Panamanian lawyer, and you should submit it within Panama itself.
France
France is renowned for its exquisite cuisine, premier museums, and stunning beaches along with picturesque landscapes. However, those fondly anticipating their golden years in this cherished European nation might be particularly attracted to another significant perk: an exceptional healthcare system available to all inhabitants, which is predominantly funded by the state.
Moreover, France’s cost of living is unexpectedly affordable for some. As reported Chase Buchanan’s latest data The rental cost for a family apartment in France can be as little as approximately $1,100 per month outside of Paris, with grocery costs, public transport, and various other expenditures being notably cheaper compared to those in the U.S.
"Beyond Paris, there are regions in France that offer remarkably budget-friendly living costs," states Peddicord. She divides her time with her family between Paris and Panama City, often surprising others when she mentions that Paris actually turns out to be more economical than expected.
She encourages those who aspire to spend their retirement in the City of Light not to dismiss it outright as too expensive. "Even Paris should remain on your radar, provided you invest some time into thorough investigation."
Key considerations: A significant benefit for American retirees moving to France is their continued ability to contribute to tax-favored U.S. retirement plans such as 401(k)s and IRAs. This advantage is due to the bilateral tax agreement between the U.S. and France, ensuring these accounts remain unaffected. taxed at US rates For Americans residing in France, rather than possibly facing higher French income tax rates .
Nevertheless, there is an important point regarding inheritance tax: In contrast to the US system, where taxes are levied based on the overall estate value, in France, the taxation occurs per beneficiary rather than on the entire estate sum. Additionally, due to mandatory succession laws, certain minimum shares must be allocated to designated beneficiaries—information that retirees owning substantial assets ought to keep in mind.
France's bureaucratic system can be daunting, particularly for individuals who do not speak French. Unlike in many other European nations, English is not commonly used here, especially beyond the big urban centers.
How to execute the transition: Ready to say oui for retirement in France? U.S. citizens have the option to apply for it.
the Long-Stay Visa for Retirement (Long Stay Visa for Pensioners). For this choice, you must provide evidence of adequate financial means along with health insurance coverage. You'll submit your application for this visa at the closest French consulate within the U.S., following which you receive what is referred to as the carte de séjour visiteur (A residential visa) requires your pension to be at least $1,073 for an individual or $1,666 for a couple. This visa remains effective for one year but offers renewal options.
Malaysia
Malaysia, which ranked seventh In the 2025 Global Retirement Index published by International Living, it provides an "exceptionally impressive" value for money according to Stevens. This destination is ideal for people aiming to extend their financial resources, along with retirees seeking a pleasant living environment at significantly lower costs compared to what they'd incur in the U.S., as she clarifies. She further adds, "If simplicity is preferred, one could manage almost without spending anything."
Based on information from International Living, renting a one-bedroom apartment in Kuala Lumpur typically ranges from $300 to $500 per month, with utility expenses adding approximately $40-$60 more each month. In lesser urban areas like Penang and Malacca, which are outside the main city center, you can find even better deals on rent alongside a less hectic lifestyle and active foreign resident groups.
Malaysia's healthcare system is also top-notch, featuring state-of-the-art facilities, personnel who speak English, and provides high-quality care at reasonable costs. An additional perk for those looking to retire here: Any money you bring into the country is exempt from taxes.
Moreover, this Southeast Asian nation serves as a vibrant blend of various cultures and culinary traditions, with English being extensively used (official signs are also displayed in English). "In certain aspects, exploring that region might be more straightforward for someone who doesn't know Spanish, compared to visiting Mexico," remarks Stevens.
Key considerations: Malaysia experiences a consistently hot and wet tropical weather all year long, which might not suit individuals who enjoy experiencing different seasons. Moreover, for retirees planning regular returns to the U.S., flying out of Malaysia can be quite challenging due to lengthy flight durations exceeding 20 hours.
How to make the transition: Malaysia offers various visa choices tailored particularly for retirees. The most favored one is the Malaysia as My Second Home (MM2H) initiative , providing a renewable multiple-entry visa. To be eligible, you must be at least 50 years old and satisfy certain financial criteria: deposit around $35,883 into a Malaysian bank account; global banks such as Citibank and HSBC are also acceptable for this requirement. Alternatively, you can demonstrate having a consistent monthly income of roughly $2,350 sourced from a government-issued pension.
Spain
Thanks to superb climate, top-notch healthcare, comparatively affordable living costs, and renowned cuisine, this European nation has long been a favorite destination for retirees over many years. InterNations' 2024 Expatriate City Rankings The leading positions among the 53 cities were claimed by Spanish cities (specifically Valencia, Málaga, and Alicante). In comparison, Madrid secured the seventh spot, whereas Barcelona was placed at twenty-first.
Moreover, Spain offers a broad spectrum of choices catering to various lifestyles, ranging from the bustling center of Madrid to quaint towns scattered across the nation’s eastern Mediterranean shoreline, alongside the picturesque Basque Country on Spain’s northwestern Atlantic edge.
What to consider Spain's taxation system is complex and varies between different autonomous regions. As a basic guideline, if you reside in Spain for over 183 days within a single calendar year, you are deemed a tax resident.
Spanish proficiency ranks amongst the lowest in Europe, particularly beyond metropolitan areas such as Madrid and Barcelona. While most Spaniards speak Castilian Spanish, certain autonomous communities have their own officially recognized languages; Catalan in Catalonia being one instance, along with Basque, known locally as Euskara, which is used in the Basque region.
Lastly, don't look for any early bird dinner discounts; Spaniards typically have their supper after 8:30 p.m.
How to execute the relocation: Spain’s non-lucrative visa (NLV, also referred to as a retirement visa) is a favored option for Americans. This visa is mainly designed for individuals who have adequate passive income or financial resources so they do not rely on Spain’s social security benefits (the current requirement stands at roughly $2,600 per month for an individual applicant; each extra family member necessitates additional funding).
You’ll apply through your nearest consulate (this refers to the procedures for the Los Angeles consulate but provides a step-by-step guide). Additionally, you must present evidence of your insurance coverage in Spain; navigating this part might be somewhat complicated since travel insurance isn’t acceptable here. Expect extensive documentation requirements and long lead times for scheduling appointments, so make sure to prepare well ahead of time.
Mexico
The country located south of the US frequently places highly on lists for ideal retirement destinations (in 2025, it secured the fourth spot on International Living’s Global Retirement Index). Its closeness to America, lower costs, and relaxed lifestyle make it very appealing. Additionally, Mexico provides a great choice for those considering living overseas but only seasonally.
In the meantime, bustling English-speaking expatriate communities in most urban areas, along with numerous familiar service providers from the US such as Netflix and Amazon, assist new arrivals in adapting more smoothly.
Mexico provides numerous tax benefits that particularly appeal to retirees. There are no taxes on inheritances or accumulated wealth, and unlike in many other nations, you achieve tax resident status based on where your main residence or principal place of business is located, rather than the aggregate number of days you spend within the nation.
Key considerations: Mexico ranks among the least peaceful According to official data, these countries are located in Latin America. The statistics reveal that there were 31,062 homicides in 2023 , approximately 24 out of every 100,000 residents (in the U.S., this rate was around six per 100,000 individuals in 2023, as reported Federal Bureau of Investigation data).
While cartel-related violence and drug trafficking dominate headlines in Mexico, petty crimes like theft and pickpocketing are actually the issues most frequently brought up by people.
Moreover, similar to what occurs in several other nations such as Portugal, an increase in foreign residents along with growing gentrification in particular urban areas has ignited debate and concern. growing tensions In certain regions that have substantial expatriate communities.
How to go about making the move: Individuals with valid passports from nations that do not need a visa, such as those from the United States, may stay in Mexico for up to 180 days. However, they are required to obtain a visitor’s permit, also known as an fmm. Forma Migratoria Multiple (FMM) upon arrival at their point of entry. Remember that the precise number of days permitted is still determined by the immigration officer who processes them.)
For extended visits, retirees might consider looking into visa options. temporary and permanent residents . They are both quite simple; however, candidates need to show they have financial stability.
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