Is Fear Blocking Your Desire to Retire Abroad? What to Know

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Between economic uncertainty and the growing cost of living, many older Americans are asking: "Should we retire abroad?"

It's an idea that stirs equal parts excitement and apprehension. On one hand, there's the dream of a richer, more fulfilling chapter of life — one marked by beauty, culture and peace of mind.

It's also a daunting practical challenge involving health care, visas and retirement income.

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But you shouldn't let these fears get in the way of what could be an exciting new adventure. With careful planning, retiring internationally can be feasible. Here's what to know if you're considering spending your golden years abroad.

Location is key

Before digging into specifics, you should first determine where you'd like to retire.

The choice of where to live is deeply personal. Lovers of wine, opera and historic architecture might gravitate toward Portugal, Spain, Italy or France.

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Those seeking affordability and vibrant coastal life might find Uruguay, South Africa or the Philippines especially appealing.

At the same time, it's important to consider such practical issues as language barriers, proximity to family and friends and the presence of an American expat community.

For example, even if you enjoy visiting Japan, moving there could be a different story if you don't know any locals or don't speak Japanese.

Also consider that your closest friends and family could be a 12-hour plane ride away. This isn't your next vacation — it's your new home.

Where you live will also have important logistical and legal impacts, so it might be helpful to pick a few places that meet your criteria, then decide which works best.

Not sure where to start? This Kiplinger list could help narrow down some popular options.

Finances: Collecting retirement income internationally

When pondering an international retirement, such financial issues as income and cost of living are key. You don't want to pick up your entire life (an expensive process in its own right) only to realize that you don't have a large enough nest egg to stay permanently.

On the retirement income front, the good news is that Social Security payments can be collected almost anywhere in the world, with a few exceptions such as Cuba and North Korea.

You should also be able to access your savings and other investments internationally.

You should always do thorough research and consult with your legal, accounting and other professionals to determine your next move.

When budgeting, it's important to consider such cost-of-living issues as housing, food and entertainment costs, just as you would when moving around the U.S.

There's one major exception: health care.

Health care: Accessing medical services abroad

Health care considerations present a key challenge for international retirees, since most countries operate on a different care model.

It's important to note that Medicare doesn't cover treatment outside the U.S., except in rare circumstances. This means you must rely on local health systems or international private insurance in your new home country.

Here's one of your most important decisions: whether to keep Medicare Part B. Part A (hospital coverage) is premium-free if you've worked at least 10 years in the U.S., so nearly everyone should file for it at age 65.

Part B (doctor and outpatient care), however, comes with a monthly premium — about $175 in 2025, or more than $2,000 annually.

Option 1: Keep Part B. Over a 20-year retirement abroad, you might spend more than $42,000 on premiums, even though you can't use the coverage outside the U.S.

The benefit is peace of mind: If you ever return, you'll have immediate access to care, with no penalties and no waiting period.

Option 2: Skip Part B. If you're confident you'll remain overseas, you can save thousands. Private health plans abroad are often far more affordable: In Portugal, premiums run about $150 to $250 per month; in Uruguay, $100 to $200; and in South Africa, $200 to $400.

The trade-off is risk. Should you decide later to return, re-enrollment comes with a permanent 10% penalty for every year you delayed, plus a waiting period of up to six months before coverage begins.

Essentially, the decision comes down to whether you anticipate living in the U.S. again.

It might be helpful to consider your personal health situation, including any specialized care you might need, as well as family dynamics that could regularly bring you back to the states for longer periods, such as caring for a child or grandchild.

Visas: Getting your paperwork in order

Visas and legal residency issues are often other sources of anxiety. These processes will vary by country, often with difficult-to-parse legalese and confusing bureaucracies. But help exists.

Many immigration attorneys and relocation consultants specialize in retirement visas, ensuring your paperwork, apostilles (certificates verifying foreign documents) and embassy filings are in order.

Some companies can also help with finding a home, setting up key services such as utilities and providing local recommendations for everything from restaurants and shops to dentists and barbers to help you get oriented.

Their guidance and services can save you months of frustration and make the transition easier.

Retiring abroad requires courage. But fears fade once you're walking cobblestone streets, sipping local wine or waking up to ocean views. With the right preparation, retiring abroad can be rewarding.

This article, which has been written by an outside source and is provided as a courtesy by Stephen B. Dunbar III, JD, CLU (AR Insurance Lic. #15714673 // (CA Insurance Lic. # 0H48286), Executive Vice President of the Georgia Alabama Gulf Coast Branch of Equitable Advisors LLC, does not offer or constitute, and should not be relied upon, as financial, tax, accounting, or legal advice. Equitable Advisors LLC and its affiliates do not make any representations as to the accuracy, completeness or appropriateness of any part of any content hyperlinked to from this article. Your unique needs, goals and circumstances require the individualized attention of your own tax, legal, financial, and other professionals whose advice and services will prevail over any information provided in this article. Stephen B. Dunbar III offers securities through Equitable Advisors LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN), offers investment advisory products and services through Equitable Advisors LLC, an SEC-registered investment adviser, and offers annuity and insurance products through Equitable Network LLC (Equitable Network Insurance Agency of California LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.). Financial professionals may transact business and/or respond to inquiries only in state(s) in which they are properly qualified. AGE-8434434.1(09/25)(exp.09/29)

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Stephen Dunbar, Executive Vice President of Equitable Advisors’ Georgia, Alabama, Gulf Coast Branch, has built a thriving financial services practice where he empowers others to make informed financial decisions and take charge of their future. Dunbar oversees a territory that includes Georgia, Alabama and Florida. He is also committed to the growth and success of more than 70 financial advisers. He is passionate about helping people align their finances with their values, improve financial decision-making and decrease financial stress to build the legacy they want for future generations.