Why more retirees are moving abroad — and where they’re settling
Retirees are moving overseas in record numbers.
While the precise number of Americans living outside the US in retirement is hard to pin down, roughly 700,000 receive Social Security benefits abroad, up more than 20% in a dozen years, according to the Social Security Administration.
“The rising costs for retirees in the US are motivating people to look beyond our borders,” Jennifer Stevens, executive editor of the International Living’s 2026 Annual Global Retirement Index, told Yahoo Finance. “In the better-value locales abroad, your dollars can really stretch. The savings for healthcare, in particular, are significant.”
When Jeff and Joch Woodruff decided to relocate to northern Portugal in retirement, it wasn’t a rash move. Their pick was triggered by fond memories of past trips to the country, talks with friends and family who had spent time in the region, and then a long visit to explore with an eye toward taking the leap.
Six years ago, the couple sold their four-bedroom home near Sacramento, Calif., and spent six months living in a tiny studio apartment in the Bonfim district of Porto.
“It all clicked,” Joch said. They purchased a condo three blocks from the Atlantic Ocean and settled in. “We’ve adopted cats, made rich friendships, and have built a community.”
The impetus for heading to a foreign land: lower cost of living, slower pace, different lifestyle, and more recently, a calmer political milieu.
According to an International Living survey, more than six in 10 Americans said today’s political climate in the US has made them more likely to move abroad.
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About one in five Americans said they would like to leave the US and move permanently to another country if they could, according to a Gallup report.
Across demographic groups, Americans with lower confidence in institutions such as the government, judicial system, military, and integrity of elections are consistently more likely to express a desire to leave the country, according to the research.
For the Woodruffs, it was a quest for less stress, new experiences, and a lower cost of living. “Our monthly budget is now a fraction — nearly one-fourth — of what we spent in California,” Joch said.
The increasing cost of out-of-pocket healthcare for retirees in the US, in particular, is a motivator for relocating, Stevens said. If you move to a foreign country, your Medicare coverage won’t work, so the quality and cost of healthcare where you end up is paramount.
Portugal is one of Europe’s most inviting countries for expats, according to a recent retirement report from Live and Invest Overseas, which analyzed factors such as cost of living, healthcare, recreation, safety, infrastructure, expat communities, taxes, and residency rules.
The top 12 places in the world to retire this year, according to that data:
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
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As for where expat retirees are already settled, according to the most recent data from the Social Security Administration, the top countries for retirees receiving benefits are Canada, Mexico, the UK, Germany, Poland, Italy, Greece, Portugal, and Spain.
It’s not just retirees heading out. Pull back to the big picture, and the expat picture is exploding. Americans are moving abroad in chart-topping numbers. For the first time since 1935, those moving abroad exceeded new arrivals to the US, according to the Brookings Institution.
In addition to Retire and Invest Overseas’ annual rankings, which feature specific towns, cities, or regions rather than entire countries, International Living’s Global Retirement Index reviews the world’s best places to retire. That list consists of 24 countries, which include Greece, France, Italy, Costa Rica, Spain, and Portugal.
The index picked Greece as the top locale for 2026, jumping ahead of longtime European favorites Portugal and Spain.
“Greece rose to that spot this year on the strength of its visa options, which include a Golden Visa that is accessible from 250,000 euros, a 7% tax on foreign pension income, and its great-value quality of life,” Stevens said. “You can live comfortably for $2,500 to $3,200 a month. You might pay $1,200 a year for private health insurance.”
And of course, “there’s the sun, sand, the dramatic beauty of the place,” she added.
Think about what you really want your days to look like, Stevens advised. “What — and be honest with yourself — are you really looking for? Make a list of what’s important to you — the nonnegotiables — and, too, what falls into the ‘would be nice’ category,” she said.
How far away do you really want to move from your friends and family? Do you want fabulous restaurants and the opera, or are you looking for a laid-back town where you can wear flip-flops year-round?
Before settling on a place, spend a couple of months there to see if you really fit in. Befriend local expats, and learn what brought them there and roughly what their cost of living is.
If you want to continue working in some fashion to earn income as a safety net, understand the local employment laws. Find out if the country allows foreigners to hold the kind of job you want and whether a work permit is required. Also, gauge competition for the job you’re seeking.
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You may not have to pick a place to live based on its job market. With some professions, you may be able to turn what you’ve done during your career into a virtual consulting or project assignment-based business online.
While Joch is retired and collects Social Security, Jeff, 57, continues to cobble together some part-time remote customer service and accounting work into his schedule. “It’s not necessarily for lots of money, but for the fun and challenge it provides,” he said.
If you’re going to earn even a small salary, consult with someone who knows international tax issues. Both the US and your new country of residence could tax the money you earn. Your foreign bank accounts may require you to file a disclosure form with the US Treasury Department.
As a US citizen or resident alien, you are taxed by the US on your worldwide income. That means you’re required to file an annual tax return with the IRS. However, you may be eligible for the foreign earned income exclusion. For tax year 2026, the maximum exclusion is $132,900 per person.
Various European countries offer incentives for people to invest and live there. “That could be in the form of straight-up income tax breaks and carrots to entice you to renovate an old place … You’ve got a bunch of options,” Stevens said. “But keep in mind, they all come with certain caveats.”
Some of the best countries for financial incentives are Italy, Spain, Greece, Ireland, and Portugal, according to researchers at International Living.
In Ireland, the national government offers grants of up to 70,000 euros to refurbish vacant or derelict houses. You must refurbish it to live in as your principal residence or make it available to rent.
Portugal offers a D7 Visa, a residence permit designed for non-European Union citizens with stable, passive income such as pensions, rental income, or dividends. It requires a minimum income of $1,086 per month, proof of accommodation such as a rental contract or a property deed, and a clean criminal record. It leads to permanent residency or citizenship after five years.
Many near-retirees dreaming of retiring abroad worry that homesickness will set in.
“I admit we were afraid we were going to miss seeing family regularly,” Joch said. “But friends and family have been visiting every year since we left, so that anxious concern never became a reality. Plus, Portugal is a perfect hub for exploring all of Europe and northern Africa.”
He added, “Nearly every day we turn to each other and say, ‘A vida é boa.’ Life is good.”
