Aug 14, 2025
If you’ve ever thought about moving abroad to retire earlier or more comfortably, you’re not alone. As of February 2025, about 26% of baby boomers and 35% of Gen Xers were relocating abroad within the next two years, according to a Harris Poll.
Many popular retirement destinations — such as Portugal, Spain, Malaysia, and Panama — offer a lower cost of living than the U.S., according to payment processor Wise. That means retiring overseas could make the lifestyle you once thought out of reach more attainable.
Advertisement
For example, if you move to a country where basic expenses are 30% lower, you could theoretically retire with a nest egg that’s 30% smaller. If that sounds appealing, here’s how you can start preparing over the next five years for a comfortable retirement abroad.
Calculate your income needs
The median retired household income in the U.S. is $54,710, according to the Census Bureau. Meanwhile, a Northwestern Mutual survey cites that most Americans believe they need $1.26 million to retire comfortably.
You probably already have a rough idea of how much income and savings you’ll need to retire. But if you're considering retiring abroad, you’ll need to dig deeper with research and expert advice.
For example, the cost of living in Lisbon, Portugal, is 47.4% lower than in New York City, and rent in Kuala Lumpur, Malaysia, is 81.2% lower than it is in Miami, according to Numbeo.
Understanding these cost differences can help you more accurately estimate how much you’ll need — and how far your money will go — when planning retirement in another country.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Determine your healthcare options
It’s no surprise that healthcare systems around the world can differ significantly from the U.S. system.
In France, for example, retirees can access the public healthcare system after just three months of residency, according to AXA Global.
Malaysia offers a two-tiered system, giving retirees the choice between government-run facilities and government-subsidized private clinics — both of which are accessible to expats and generally more affordable than U.S. healthcare, according to SmartAsset.
Advertisement
Adapting to a new healthcare system can be complex, but it’s a crucial part of planning for retirement abroad.
Understand and prepare for the tax implications
Before you move abroad, it’s important to understand that your retirement accounts, Social Security benefits, and other income sources may be taxed differently than they are in the U.S.
If you remain a U.S. citizen while living overseas, you’ll still need to file a U.S. tax return each year with the IRS. At the same time, you may also be required to file and pay taxes in your new country of residence.
Some countries impose wealth or inheritance taxes, which could affect your estate — especially if you plan to buy property abroad.
Tax planning for expat retirees can be complex. Your situation will depend on your destination’s tax laws and whether it has a tax treaty with the U.S.
To avoid overpaying — or underpaying — taxes in either country, consult a financial advisor experienced in cross-border retirement planning.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
