As winter looms, snowbirds of the human variety are planning their annual southern migration. For many, another significant transition may also be near: Retirement. And for many of them, heading to sunny, warm climes is at the top of the list.
For thousands of Americans, that means heading farther south than such traditional domestic retirement hot spots as Florida and Arizona. Much further.
Incentives that include low cost of living, high quality of life, favorable tax treatment, and relatively short trips back home have made some destinations in Latin America particularly attractive.
Let's look at three.
Mexico in North America
Proximity, familiarity, diversity of culture and landscapes, and so much more have long made Mexico a retirement destination for thousands of Americans. In fact, the Social Security Administration said it sent 62,639 payments there in October 2023, behind only Japan and Canada. (In comparison, the other two countries here see about 6,500 such monthly payments.)
Mexico is a very large, very diverse country. That makes it reasonably easy to find a setting that fits your tastes for great culture and dining, amazing scenery, solid healthcare options, and housing, often at a price point well below what you'd be paying now in the United States.
There are large expat communities in places such as Puerto Vallarta, San Miguel de Allende, and Riviera Maya where English is spoken. An emerging hot spot is Merida, the state capital of Yucatán and considered perhaps the nation's safest big city.
The Mexican government has also invested in incentives like tax breaks (your Social Security benefits are excluded, for instance) and expedited visas to encourage foreign retirement. Currently, the Temporary Resident Visa -- for stays of 180 days up to four years -- requires only that you have investment or bank account balances of at least $43,000 or so and a monthly income of about $2,500.
Costa Rica in Central America
Interested in a green retirement? While only slightly larger than Maryland, Costa Rica is renowned for the biodiversity in its largely protected mountainous rainforests, volcano-dominated landscapes, and beaches on both the Pacific Ocean and Caribbean Sea.
The people of this Central American democracy are serious about the green thing. Along with largely avoiding deforestation, they produce nearly all their electricity from renewable sources and recycle more than half their waste.
Your own green will go a long way there, too. Among the many benefits of the country's pensionado residency program: Retirees pay no taxes on income received from outside Costa Rica, and once your residency is approved, you qualify for the country's public healthcare system... and it covers pre-existing conditions.
One of the basic requirements to qualify for that program is a minimum monthly income of $1,000, a modest threshold that reflects the low cost of living (including for real estate) and high quality of life in this culture-rich, tourism-focused getaway.
Ecuador in South America
Then there's Ecuador, named for its location on the equator in the northeast corner of South America. Roughly the size of Colorado, Ecuador's diverse geography includes dry coastlines and sandy beaches along the Pacific, the snow-capped peaks of the Andes Mountains, and lush rainforests and a piece of the Amazon River basin.
Ecuador's cost of living is among the lowest in South America. Its pensionado visa helps keep costs down even more for seniors, with benefits like 50% off public transportation, cultural and sports events, and utilities, along with property and income tax breaks and even discounts on international flights.
Direct flights to an idyllic retirement
Speaking of international flights, a quick check finds direct flights from Atlanta to each of these nation's capitals, none lasting more than about four hours. And they're all in either the Eastern or Central time zones, which makes it that much easier to time those calls and visits.
The visa and tax rules and retiree incentives vary widely and can change often. Don't make a big decision like this without doing a lot of homework and consulting both qualified experts and regular folks who have made the move there.
You just might find the ideal location to spend your nest egg and your golden years.