Retirement can be incredibly costly, especially in the United States. The median rent in the U.S. is just under $2,000 per month as of 2023, while the average Social Security benefit among retirees is only around $1,800 per month.
While retiring in a new country won't be the right solution for everyone, it can be a far more affordable option. But some places are more retiree-friendly than others, and moving anywhere requires loads of research.
These three countries are popular retirement destinations for a reason, and there are plenty of perks to calling one of these places home in your senior years.
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1. Costa Rica
Costa Rica is one of the most popular retirement destinations, with around 10% of the country's population made up of expatriates.
Part of the appeal of this country is its lower cost of living. The average one-bedroom apartment in a major city costs just under $600 per month, while an apartment outside of the city averages around $400 per month.
Costa Rica also boasts one of the best healthcare systems in Central America, and you'll generally pay around one-third to one-fifth of what you'd pay for healthcare in the U.S. Prescription drugs are also more affordable and widely available in Costa Rica.
2. Portugal
Portugal is not only a breathtakingly beautiful country, offering everything from beaches to mountains to sweeping plains, but it's also incredibly safe. The country was ranked as the sixth safest in the world, according to the 2022 Global Peace Index report -- compared to the U.S., which ranked 129th.
It's also more affordable than most U.S. cities, with the average one-bedroom apartment costing between $650 and $900 per month, depending on whether you live in a smaller town or large city.
Portugal's government-funded healthcare is also free to all citizens. While you may have to pay for emergency care, the costs are a small fraction of what you'd pay in the U.S. for similar services.
3. Greece
For those looking for a country filled with natural beauty, a rich history, and plenty of sunshine, Greece may be a fantastic option.
Averaging around 250 sunny days per year and surrounded by seas, Greece is a Mediterranean paradise boasting mountains, beaches, and stunning views throughout the country. It's also senior-friendly, with half of the country's population over age 50.
It's also a popular retirement destination due to its affordability. The average one-bedroom apartment costs around $450 per month if you're living in a major city, or just under $400 per month outside of town.
Healthcare in Greece is also far more affordable than in the U.S., and it's becoming a hotspot for medical tourism as more people travel to the country specifically for affordable medical procedures.
Should you retire abroad?
Before you make any big decisions, make sure you've thought about whether moving abroad is worthwhile at all. While you could save thousands of dollars per year on general living expenses, you may spend much more on travel if you're coming back to the U.S. frequently to visit family and friends.
Each country also has different requirements for becoming a legal citizen or living there long-term, and while many people in other parts of the world speak English, that's not always a given. Before you start packing your bags, be sure you've thought about any challenges you could face outside of your finances.
Retiring abroad can be a fantastic way to save money and spend your golden years enjoying beautiful weather and rich culture, but it requires plenty of preparation. The more planning you put into your decision, the more enjoyable your retirement journey will be -- no matter where it takes you.
