May 4, 2026
Many people dream of traveling in their golden years. Others focus on living a frugal lifestyle to avoid running out of money during retirement. These two goals are usually at odds with each other — unless you want to move to a part of the world with a low cost of living, such as Southeast Asia, which is known for lower living expenses than the United States.
There's a seemingly endless list of logistics to tackle when moving abroad, though, especially financially. If you're retiring, you're probably wondering about receiving Social Security benefits.
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"My wife and I would like to retire to Malaysia, but we would need to continue receiving our Social Security checks to make life more comfortable," a reader writes to MarketWatch's "Help Me Retire" column. (1) "We don't want to lose them. Will the Social Security Administration allow us to live overseas while receiving Social Security retirement benefits, or would we have to forget about those benefits and live off other sources of income?"
Receiving Social Security benefits when retiring abroad
You can retire overseas and still receive benefits.
"In many situations, the Social Security Administration will continue to pay out benefits to retirees even if they move abroad," responds Alessandra Malito, the reporter behind the Help Me Retire" column.
But there are a few stipulations depending on where you move, she says.
"There is also a long list of countries the agency works with amicably to coordinate benefit payments," she continues.
The Social Security Administration states that it will not send payments to U.S. citizens living in Cuba or North Korea. (2) There are also more extensive rules for people who qualify for Social Security benefits but are not U.S. citizens.
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That said, if you want to move to Malaysia, for example, you can receive benefits as a non-U.S. citizen if you worked in the U.S. and earned at least 40 Social Security credits, lived in America for at least 10 years, or are a dependent or survivor of someone who meets that criteria. (2)
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Other financial considerations when retiring in a different country
Social Security payments aren't the only financial factor to consider when retiring in another country. What are your healthcare options? What should you do about bank accounts?
Medicare typically won't cover care if you reside outside of the U.S., so you'll need to find an alternative. (3) One option is enrolling in an international health insurance policy through companies such as Allianz Care (4), Cigna Global (5), and Blue Cross Blue Shield (6).
You should also look into the local healthcare system in your new country. For example, Thailand (another country in Southeast Asia) lets certain non-residents enroll in its public healthcare at a low annual rate. (3) In fact, many countries require residents (which you'll likely become if you move somewhere full-time) to pay into their healthcare infrastructure.
But if you aren't working there — which would be understandable if you plan to retire there — public healthcare might not even be an option. (8) Depending on which country you move to, however, paying out-of-pocket for private care could be a lot less expensive than doing so in America. (4)
As for bank accounts, it's often a good idea to open one in your new country and leave at least one open in the U.S. Certain countries require foreign residents to open bank accounts to establish residency. And maintaining a U.S. account can be useful for receiving Social Security payments and other sources of income, as well as paying American companies if necessary. (10)
Paying U.S. taxes when living abroad
You usually still need to pay federal and state taxes if you remain a U.S. citizen when retiring abroad. (10)
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"Depending on your income, your Social Security benefits may be taxable," writes Malito. "U.S. expats in Malaysia must file U.S. taxes on global income, using the Foreign Tax Credit or Foreign Earned Income Exclusion to avoid double taxation."
With the Foreign Earned Income Exclusion, American expats can exclude wages and salaries earned abroad from U.S. taxes so they aren't taxed twice. But this exclusion doesn't apply to pension, retirement income, or Social Security payments. Some countries will tax withdrawals from Roth retirement accounts. (10)
Rearranging your finances, especially your taxes, is complex when retiring abroad. Talk with your financial advisor and a tax specialist before packing your bags.
"There is always a lot to consider when retiring abroad, but then again, the same can be said of retiring here in the U.S.," writes Malito.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
MarketWatch (1); U.S. Social Security Administration (2); Mint Insurance Agency (3); Allianz Care (4),(8); Cigna Global (5); Blue Cross Blue Shield (6); U.S. Bank (10)
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Laura Grace Tarpley is a contributing reporter for Moneywise who has been covering personal finance and working in digital media for 10 years. Her expertise spans banking, investing, retirement, loans, mortgages, and taxes.
