Discovering the ideal retirement destination can be a challenging task. While a study has recognized Akron, Ohio, as the best affordable place to retire in the U.S., other considerations beyond affordability may influence your decision. Whether you are contemplating retiring in the U.S. or seeking overseas alternatives, there are numerous options to explore.
By relocating to a place that aligns with your financial capabilities and personal interests, you may stretch your retirement funds and enhance your overall quality of life. To assist you in your pursuit, we’ve compiled a list of eight of the finest retirement spots globally: encompassing four locations within the U.S. and four international destinations.
Retiring Abroad vs. in the U.S.
Opting for retirement abroad promises an exciting adventure, but the level of adventure can vary depending on the chosen destination. Transitioning to life overseas entails coping with significant cultural, political, economic disparities, and potentially language barriers, regardless of your preferred location.
While international retirement can offer cost savings, affordable healthcare, and a refreshing change of scenery, bear in mind that residing abroad contrasts being a mere tourist. Take the time to evaluate potential destinations by renting property for a substantial period, immersing yourself in the local culture, interacting with residents and expatriates, and gauging your long-term happiness in that setting.
Based on data from the Social Security Administration as of January 2024, the average monthly Social Security retirement benefit stands at $1,907. With prudent budgeting, this sum could sustain a comfortable retirement abroad.
Conversely, if you prioritize stability and proximity to family and established social networks, retiring in the U.S. might be more suitable. Although the cost of living in the U.S. tends to be higher compared to various international locales, escalating healthcare expenses and assisted living costs should be taken into consideration.
Remaining in the U.S. could involve relocating to a region that aligns more closely with your retirement objectives.
Best Places to Retire Abroad
Selecting an idyllic retirement locale involves more than just aesthetics; it requires envisioning your life as a local resident rather than a fleeting tourist. Our recommendations derive from International Living’s Annual Global Retirement Index, which assesses countries across seven vital categories:
- Visa/benefits
- Climate
- Cost of living
- Development
- Healthcare
- Housing
- Affinity rating
Below are the top four international retirement destinations for 2024.
Costa Rica
Renowned for its retiree-friendly benefits package, Costa Rica boasts sandy beaches, quality healthcare, lush biodiversity, and a tropical climate ideal for cultivating a healthy lifestyle. The safety and environmental commitment have earned it the moniker “the Switzerland of Central America.” Adventurous souls can partake in an array of activities like canopy tours, jungle hikes, and sea kayaking.
Dubbed as “the Switzerland of Central America,” Costa Rica is known for its safety, neutrality (it abolished its army in 1948), and commitment to the environment.
Portugal
Portugal’s affordable living costs attract expatriates worldwide to its sunny shores. Whether relishing fresh seafood, regional wines, or exploring Lisbon—the 2020 European Green Capital—the country offers a pleasant climate and a tantalizing culinary scene.
Portugal combines affordability with delectable cuisine and a temperate climate—making it a standout among European destinations.
Mexico
With an extensive expat community and alluring retirement benefits, Mexico beckons retirees with its favorable climate, cultural richness, and cost-effective healthcare services. From quaint colonial towns to vibrant coastal cities, Mexico offers an abundance of choices for retirees.
Mexico’s diversity encompasses colonial villages and scenic beachfront towns, catering to retirees seeking varied experiences.
Panama
Panama’s favorable climate, affordability, and robust retirement benefits program position it as a prime retirement destination. Utilizing the Pensionado Visa, retirees can enjoy notable discounts on entertainment, hospitality, transportation, and healthcare services.
- 50% off entertainment
- 30% to 50% off hotel stays
- 30% off bus, boat, and train fares
- 25% off airfare
- 25% off energy bills
- 15% off hospital bills (if not covered by insurance)
Panama City’s modern infrastructure and rich cultural scene appeal to retirees, highlighting the country’s dynamic lifestyle and convenience.
Best States to Retire in the U.S.
WalletHub’s ranking of the Best and Worst States to Retire serves as a valuable resource for identifying retirement-friendly states, appraised across 46 essential metrics. Here are the top four U.S. states recommended for retirement in 2024.
Florida
With its inviting beaches, perpetual sunshine, and tax-friendly environment, Florida stands out as a perennial favorite among retirees. The state’s array of recreational amenities and absence of state income tax offer a desirable setting for retirees.
Beyond its famed attractions, such as Orlando and Miami, Florida’s diverse regions provide numerous opportunities for retirees to explore and reside amongst like-minded individuals.
Colorado
Characterized by its outdoor appeal and tax advantages, Colorado attracts active retirees with its natural landscapes and tax incentives on retirement income. The state’s diverse terrain affords various activities throughout the year, complemented by a favorable tax environment.
From national parks to ski resorts, Colorado presents retirees with a host of recreational possibilities bolstered by tax-friendly policies for retirement earnings.
Virginia
Virginia’s unique blend of beaches and mountains caters to retirees seeking a balance between scenic beauty and outdoor activities. Tax-friendly initiatives, including exemptions on Social Security and retirement income, further enhance the state’s appeal as a retirement destination.
From picturesque trails to tax benefits, Virginia offers retirees an enriching lifestyle amidst a naturally diverse landscape.
Delaware
Delaware’s tax-friendly environment and welcoming atmosphere make it an attractive choice for retirees. With a favorable tax structure, beautiful beaches, and proximity to major cities in the Northeast, Delaware provides a compelling setting for retirees seeking comfort and convenience.
From tax benefits to coastal escapades, Delaware embodies the perfect blend of relaxation and urban accessibility for retirees.
If You Move Abroad
Before embarking on an international retirement journey, consider experiencing your potential destination as a resident rather than a tourist. Renting property and engaging with locals and expats can facilitate a smoother transition. Seeking advice from financial experts can also help navigate tax regulations and devise a sustainable budget for your overseas retirement.
Moreover, familiarize yourself with the regulations, visa requirements, and safety concerns of your chosen country. Consulting with legal and financial professionals can streamline the process and ensure a secure and comfortable retirement abroad.
Which States Don’t Tax Social Security and Pensions?
Taxes play a vital role in retirement planning. Fortunately, several states exempt retirement distributions from taxation, potentially extending the lifespan of your retirement savings. Twelve states do not tax 401(k), IRA, or pension distributions:
- Alaska
- Florida
- Illinois
- Mississippi
- Nevada
- New Hampshire
- Pennsylvania
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
What Are the Cheapest Places on Earth to Retire?
Colombia, Thailand, Malaysia, Ecuador, and Mexico rank among the most affordable retirement destinations globally. Notably, Akron, Ohio, stands out as the best affordable place to retire in the U.S., considering livability factors.
Where on Earth Is the Quality of Life the Highest?
In the U.S. News Best Countries ranking, Quality of Life is evaluated based on nine critical attributes. The top 10 countries renowned for their superior quality of life include:
- Sweden
- Norway
- Canada
- Denmark
- Finland
- Switzerland
- The Netherlands
- Australia
- Germany
- New Zealand
The Bottom Line
While many individuals opt to retire within their familiar surroundings, exploring alternative options can yield numerous benefits. Overseas retirement grants access to cost efficiencies, novel experiences, and improved climatic conditions. Prior research, professional guidance, and a thoughtful approach can facilitate a seamless transition to a fulfilling retirement abroad.
Whether choosing to relocate overseas or within the U.S., it is essential to make informed decisions and prioritize safety and financial stability. Stay vigilant and adhere to precautionary measures when contemplating retirement moves to ensure a smooth transition and secure foundation for your future lifestyle.