Best Countries for Americans to Retire: An Honest Guide

I still remember the day I sat across from Jim and Linda at that café in Panama City.

“We sold everything,” Linda told me, stirring her coffee. “The house in Phoenix, both cars, even my garden gnome collection.”

Jim chuckled. “That was a tough one for her.”

They were both 67, freshly retired, and had just moved to Panama with nothing but eight suitcases and a dream of stretching their modest retirement savings.

Three years later, they own a small house with an ocean view, have a thriving social circle of both expats and locals, and Jim’s blood pressure medication costs $12 a month instead of $180.

“Best decision we ever made,” Linda said when I visited them last year. “But we wish someone had given us the real scoop before we jumped.”

That’s exactly what I want to give you today.

Why Americans Are Actually Retiring Abroad

Let’s be real about why more Americans than ever are looking beyond our borders for retirement.

I’ve spent the last decade helping retirees navigate international moves, and these are the honest reasons they share with me:

Financial Reality Check

The math simply doesn’t work for many Americans. According to the Federal Reserve, the median retirement savings for Americans aged 55 to 64 is about $134,000.

That might sound like a decent chunk until you realize it translates to roughly $5,360 per year (using the 4% rule) to supplement Social Security.

In places like Portugal, Panama, or Thailand, that same money can provide a genuinely comfortable lifestyle.

When I talked to retirees in Mexico last year, almost all cited financial concerns as their primary motivation. But interestingly, after a year abroad, most said they’d stay even if money wasn’t an issue.

Healthcare Costs and Quality

I had my own wake up call about American healthcare when I broke my ankle in Portugal in 2019.

The total cost for emergency care, surgery with titanium pins, three days in a private hospital room, and six months of physical therapy?

€2,800 (about $3,100).

The estimated cost for the same care back home with my “good” insurance? Over $17,000 out of pocket.

For retirees with ongoing health concerns, this difference is life changing.

💡 Tip: Most countries popular with American retirees offer both public healthcare systems you can join and private insurance options that cost a fraction of US prices. Having the right international health coverage is crucial when making your move. You can compare options here.

Lifestyle and Weather Improvements

“I was tired of shoveling snow,” Bob in Costa Rica told me last winter while we sipped fresh mango smoothies on his porch. “Now the only thing I shovel is sunshine.”

Corny? Sure. But I understand what he means. Many retirees are simply seeking better weather and a more relaxed lifestyle than what they experienced during their working years.

When I meet American retirees abroad, I often hear variations of: “I have time now. I wanted to actually enjoy it.”

Visa and Residency Reality: Can You Actually Stay?

Before you start dreaming about your beach house abroad, let’s talk about the nuts and bolts of whether you can legally live in these countries long term.

Retirement Visa Programs That Actually Work

Countries that genuinely want American retirees have created specific pathways. Here are the most reliable options I’ve seen work for dozens of friends:

Panama’s Pensionado Program

This remains one of the gold standards. You need to show a lifetime pension income of at least $1,000 per month (Social Security counts). The benefits are extraordinary, including:

• 50% off entertainment
• 30% off bus and boat fares
• 25% off airline tickets
• 25% off restaurant meals
• 20% off medical services
• 15% off hospital bills

I helped my aunt and uncle move to Panama in 2021, and they still call me regularly to brag about the latest senior discount they’ve discovered.

Portugal’s D7 Visa

While not specifically for retirees, this “passive income visa” works perfectly for Americans with Social Security, pensions, or investment income. You need to show roughly $8,400 annual income per person, which most retirees with Social Security can manage.

The process involves some paperwork (don’t attempt it without help), but it leads to permanent residency after five years and potential citizenship.

Thailand’s Retirement Visa (O-A)

Thailand requires you to be 50+ with either 800,000 baht (about $23,000) in a Thai bank account or monthly income of 65,000 baht (about $1,850). The visa is renewed annually.

When I lived in Thailand, I met dozens of American retirees who had been renewing successfully for years. The main complaint was the requirement to report your address every 90 days.

Costa Rica’s Pensionado Program

You need to prove monthly income of at least $1,000 from a permanent source like Social Security or a pension. After three years, you can apply for permanent residency.

Costa Rica doesn’t offer the same discounts as Panama, but the established expat community and healthcare quality make it a top choice.

Mexico’s Temporary and Permanent Resident Visas

Mexico offers straightforward pathways with reasonable income requirements (roughly $1,300 monthly for temporary residency).

I’ve found the Mexican immigration officials to be among the most helpful, especially in areas with established expat communities like Lake Chapala, San Miguel de Allende, and Puerto Vallarta.

💡 Tip: Most countries require you to apply for retirement visas from your home country, not after arrival as a tourist. Plan ahead and start the process while still in the US.

Healthcare, Weather, and Community: The Retirement Trifecta

Based on my experiences and the hundreds of retirees I’ve spoken with, these three factors determine long term happiness more than anything else.

Healthcare That Won’t Bankrupt You

Let me be blunt: Medicare does not cover you outside the US.

This shocks many people I talk to. You’ve paid into Medicare your entire working life, but the moment you step on foreign soil, that coverage disappears.

Your options abroad typically include:

1. Public Healthcare Systems

Many countries allow legal residents to join their national healthcare system after a qualifying period:

• Portugal: Immediate access once you have residency
• Mexico: You can join IMSS for about $500/year
• Panama: Public system is available but most expats use private care
• Thailand: Public hospitals are incredibly affordable but may have language barriers

2. Private Insurance Locally

Local private insurance in retirement destinations is dramatically cheaper than US insurance:

• In Mexico, comprehensive plans start around $1,000-1,500/year
• In Portugal, plans range from €800-1,200/year
• In Panama, expect to pay $1,000-2,000/year depending on age

3. International Health Insurance

These plans cover you across multiple countries and often include coverage during visits back to the US.

This is what I personally use and recommend to most retirees who plan to travel between countries. You can compare international health insurance options here.

The Hospital Reality Test

When researching potential retirement destinations, I always visit the local hospitals.

In San Miguel de Allende, Mexico, I was shown private rooms with personal nursing care that looked like a nice hotel.

In some parts of Thailand, I found international standard hospitals that wealthy people from around Asia fly to for treatment.

But I’ve also visited public clinics in remote areas that would make most Americans uncomfortable.

Location within countries matters enormously for healthcare access.

Weather Patterns You Can Actually Live With

Being on vacation somewhere sunny is different from living through an entire hot season or rainy season.

“I visited Puerto Vallarta in January and fell in love,” my friend Sarah told me. “Then I moved there in July and thought I was going to melt.”

She now splits her time between Mexico in winter and Lake Michigan in summer.

Consider these climate realities in popular retirement spots:

Costa Rica: The rainy season (May-November) brings daily downpours. Mountain areas like Atenas and Grecia offer eternal spring conditions.

Panama: Panama City is hot and humid year round. The highlands like Boquete offer cool, spring like weather but more rain.

Portugal: The Algarve offers mild winters, but homes often lack central heating and can feel cold and damp in winter.

Mexico: Colonial highlands like San Miguel de Allende and Lake Chapala offer possibly the world’s most perfect climate. Coastal areas can be extremely hot in summer.

Thailand: Most of the country is tropical with a pronounced rainy season. Chiang Mai has a cool season from November to February that many retirees love.

💡 Tip: Rent during the least appealing weather season before buying property. January visits to most destinations will give you a misleadingly positive impression.

Community: The Secret Ingredient to Retirement Happiness

When I interview happy retirees abroad, one factor consistently predicts their satisfaction: community integration.

Those who build connections with both fellow expats and locals report the highest happiness levels.

In places like Ajijic, Mexico and Boquete, Panama, you’ll find established expat communities with activity groups, volunteer opportunities, and built in support networks.

My friend Richard moved to Lake Chapala, Mexico five years ago after his wife passed away.

“Within two weeks, I was playing pickle ball three times a week, joined a hiking group, and had dinner invitations from both American and Mexican neighbors,” he told me. “I haven’t been lonely a single day since I arrived.”

The flipside is also true. Retirees who isolate themselves or live in areas with few other internationals often struggle regardless of how beautiful or affordable their location is.

Top Countries for American Retirees in 2025

Based on all these factors and my personal observations, here are the top retirement destinations for Americans right now:

Portugal: Europe’s Retirement Haven

Why It Works:

Portugal combines European charm and safety with affordability (by European standards). The D7 visa provides a clear path to permanent residency and potential citizenship.

Healthcare quality is excellent, with the public system available to residents and affordable private options.

English is widely spoken in the Algarve and Lisbon areas, making integration easier than in most European countries.

What No One Tells You:

Houses are often poorly insulated with minimal heating, making winters surprisingly uncomfortable despite mild temperatures.

The bureaucracy can be frustratingly slow, especially during the initial residency process.

While affordable for Europe, Portugal is becoming more expensive as its popularity grows.

Best Places Within Portugal:

• Silver Coast: More affordable than the Algarve with fewer tourists
• Algarve: Best weather, most English, highest expat concentration
• Inland Alentejo: Rural charm and lowest prices, but requires Portuguese language skills
• Madeira Island: Increasingly popular for its micro climate and natural beauty

Cost Range: $2,000-3,500/month for a comfortable lifestyle

Mexico: Proximity and Established Expat Communities

Why It Works:

Mexico has the largest American expat population in the world, with entire communities built around retiree needs.

The proximity to the US means easy visits from family and convenient access to US healthcare for serious conditions.

Healthcare is excellent in private facilities and astonishingly affordable.

Residency is straightforward with reasonable income requirements.

What No One Tells You:

Safety issues are real in certain regions, though expat areas are generally very safe.

The loud culture (music, festivals, roosters) can be an adjustment for some.

Air quality in some inland cities can be poor during certain seasons.

Best Places Within Mexico:

• Lake Chapala/Ajijic: The classic expat retirement area with ideal climate
• San Miguel de Allende: Colonial beauty with rich cultural offerings
• Puerto Vallarta: Beach living with excellent infrastructure
• Merida: Affordable colonial city with authentic Mexican culture

Cost Range: $1,500-3,000/month depending on location and lifestyle

Panama: Built for American Retirees

Why It Works:

The Pensionado program offers the best retiree benefits in the world.

Panama uses the US dollar, eliminating currency concerns.

The country is politically stable with strong infrastructure.

Excellent healthcare facilities are available in Panama City.

What No One Tells You:

Panama City is more expensive than most expect.

The culture can feel less distinct than other Latin countries.

The rainy season is intense, with daily downpours for months.

Best Places Within Panama:

• Boquete: Mountain setting with spring like climate and established expat community
• Coronado: Beach area with amenities geared toward retirees
• Pedasi: Quieter beach town for those seeking authenticity
• Panama City suburbs: First World conveniences with city access

Cost Range: $2,000-3,500/month for comfortable living

Costa Rica: Natural Beauty and Pure Life

Why It Works:

The “Pura Vida” lifestyle promotes wellbeing and longevity.

Healthcare quality is exceptional, with both public and private options.

The country’s focus on environmental protection creates a healthy living environment.

No army since 1949 means political stability and safety.

What No One Tells You:

Bureaucracy can be frustratingly slow and seemingly arbitrary.

Roads are in poor condition in many areas.

The rainy season is no joke, with daily downpours that can cause isolation.

Best Places Within Costa Rica:

• Central Valley (Atenas, Grecia): Perfect climate and proximity to hospitals
• Southern Zone: Natural beauty and lower prices, but remoteness
• Tamarindo area: Beach living with amenities, but higher costs
• Lake Arenal: Stunning beauty and bargain real estate

Cost Range: $2,000-3,500/month for comfortable living

Thailand: Exotic Living on a Budget

Why It Works:

Thai culture is welcoming and service oriented.

Healthcare quality in major cities is world class at a fraction of US prices.

The cost of living allows for luxuries like household help and frequent dining out.

Modern amenities coexist with exotic cultural experiences.

What No One Tells You:

The retirement visa requires annual renewal with financial verification.

Cultural and language barriers are more significant than in Latin America.

Distance from the US means family visits are less frequent.

Best Places Within Thailand:

• Chiang Mai: Cultural center with lower costs and mild winters
• Hua Hin: Coastal living favored by Thai royalty
• Phuket: Island living with international amenities
• Bangkok suburbs: City access with more space and greenery

Cost Range: $1,500-3,000/month for comfortable living

💡 Tip: Within each country, cost of living and lifestyle can vary dramatically by region. The capital city is rarely the best place for retirees to settle.

Your Retirement Abroad Checklist: Making the Right Choice

After helping dozens of retirees make this transition, here’s my practical checklist for finding your perfect retirement destination:

Health Needs Assessment

☑️ Research healthcare facilities near potential homes

• Visit hospitals in person if possible
• Check for English speaking doctors
• Research specific care for any chronic conditions you have

☑️ Understand healthcare coverage options

• Can you join the public system?
• What do private insurance plans cost at your age?
• How will you handle care during US visits?

☑️ Check medication availability

• Are your prescriptions available?
• What do they cost locally?
• Are any of your medications restricted?

Financial Reality Check

☑️ Create a detailed budget for each potential location

• Housing (rent or mortgage)
• Utilities (including internet)
• Food and dining
• Healthcare/insurance
• Transportation
• Entertainment
• Trips back to the US
• Buffer for unexpected expenses

☑️ Understand banking logistics

• Will your US bank work abroad? (ATM fees, wire transfers)
• How will you manage US accounts from abroad?
• Local banking requirements and limitations

☑️ Plan for tax obligations

• US tax filing requirements continue
• Potential tax treaties with your new country
• State tax obligations if maintaining US residency

Logistics and Lifestyle

☑️ Visit during different seasons

• Experience both the ideal and worst weather
• Stay in regular neighborhoods, not tourist areas
• Try daily activities like grocery shopping

☑️ Research visa requirements thoroughly

• Income/asset requirements
• Application procedures and timeline
• Renewal processes and requirements
• Path to permanent residency if desired

☑️ Consider communication needs

• Internet reliability for video calls with family
• Time zone differences for staying in touch
• Mobile phone options and costs

☑️ Evaluate housing options

• Rent first, buy later (if ever)
• Property ownership restrictions for foreigners
• Resale market if you might move again
• Accessibility features as you age

Social and Personal Factors

☑️ Research expat community presence

• Organized activities and groups
• Support networks for newcomers
• Balance of expats and locals

☑️ Be honest about language abilities

• Your willingness to learn a new language
• Availability of English services
• Translation apps and services

☑️ Consider distance from family

• Cost and ease of family visits
• Accommodations for visiting family
• Technology for staying connected

☑️ Plan for aging in place

• Healthcare for later years
• Home accessibility
• Support services availability
• Contingency plan if health declines

💡 Tip: Create a weighted scoring system for your priorities. What matters most to you? Healthcare quality? Cost of living? Proximity to the US? Climate? Give these factors appropriate weight in your decision.

The Truth About Retiring Abroad

After all my years helping retirees make international moves, I’ve noticed some universal truths:

The First Year Is the Hardest

Almost everyone struggles during the first year. Cultural adjustments, language barriers, and logistical challenges create a perfect storm of stress.

My friend Carol in Portugal called me in tears three months after moving. “I’ve made a terrible mistake,” she said.

Today, four years later, she hosts a popular podcast about expat life in Portugal and can’t imagine living anywhere else.

Healthcare Concerns Are Usually Overblown

Nearly every American retiree I know was worried about healthcare quality abroad. Almost all report being pleasantly surprised by the quality and affordability once they arrive.

The key is doing proper research and getting appropriate international health insurance before you move. You can compare plans designed for American retirees abroad here.

Community Matters More Than Cost

The happiest retirees I know aren’t necessarily in the cheapest locations. They’re in places where they’ve built strong social connections.

“I could save $500 a month by moving to a different part of Mexico,” my friend Tom told me. “But my friends here are worth way more than that.”

Flexibility Is Your Best Asset

Plans change. Countries change. You change.

The most successful international retirees maintain flexibility in their housing (renting before buying), their location (starting in established expat areas before venturing further), and their expectations.

Final Thoughts: Is Retiring Abroad Right for You?

I’ve seen international retirement transform lives.

Couples who were just scraping by on Social Security in the US now live comfortably in mountain homes with views.

Retirees who couldn’t afford their medications now receive quality healthcare at a fraction of US costs.

People who were isolated and lonely have found vibrant communities of like minded adventurers.

But it’s not for everyone.

If you’re someone who loves routine, struggles with change, or has complex healthcare needs that require specialized treatment, international retirement might not be your best option.

The most important thing is to go into it with open eyes, realistic expectations, and proper preparation.

Remember, you can always come back if it doesn’t work out. Most of the retirees I know tried several locations before finding their perfect fit.

And whatever you do, please get proper international health insurance before you go. I’ve seen too many dreams derailed by unexpected medical expenses. You can compare international health insurance options here.

Safe travels, and maybe I’ll see you on a beach somewhere!

Have you retired abroad or are you planning to? Share your experiences in the comments below. I respond to every comment and love hearing your stories.