At 50, she quit her career and retired to Mexico — then spent 'year one' making endless and expensive mistakes. Here's what she learned

Ivy Ge told Business Insider about her plan to retire early and move abroad to save money. In her first year in Mexico, she made a number of missteps that threw her carefully planned budget out of whack.

Here’s what tripped her up the most during that crucial ‘year one’ — and what she learned from the experience.

Americans retiring abroad

More than 460,000 Americans claim retired worker Social Security benefits from foreign countries, according to the Social Security Administration. And a 2024 poll found that 17% of Americans age 55 and older would like to settle in another country.

Ge told Business Insider that she chose Mexico because it would be more affordable than staying in the States, and it’s still close to San Francisco, where her family lives.

“The high cost of living in the U.S. made an early retirement there feel impossible for me, but it seemed within reach with strong financial investments and a strategic move,” Ge said.

A place to call home is essential

While it might be common sense that it’s prudent to spend some time visiting the place you’re considering moving for retirement, there are some other aspects to picking a place that one might overlook.

Ge found out the hard way that it’s not only where you move, but when you move that can be an issue. She moved to Ajijic, Jalisco, during prime “snowbird” time, which is also peak rental season, she told Business Insider.

This meant that finding a place was competitive. She struggled to find any place that she liked, so when something that matched what she was envisioning finally came along, she eagerly agreed to prepay one year’s rent plus a security deposit.

Only after living there did she realize that the neighborhood was very loud at night. That, coupled with “a security scare” and a gas leak pushed her to break her lease early, which impacted her budget. She only got a partial refund.

Banking abroad can be tricky

There is a lot of planning to do when it comes to your finances if you decide to retire abroad.

You will also need to look into whether you’ll need a visa; some countries offer retirement visas, which differ from long-term tourist visas and can offer tax benefits. And you’ll need to secure health coverage, as Medicare doesn’t typically cover care outside the U.S.

Banking as an American living abroad can also raise issues. According to the Association of Americans Resident Overseas, an advocacy group, Americans living abroad can have difficulties maintaining U.S. checking and savings accounts, as well as investment or brokerage accounts.

AARO reported that survey respondents had been suddenly “dumped” by major financial institutions, some with little or no notice. The most common reason reported was not having a U.S. address, U.S. telephone number or a tax identification number.

Ge faced issues when the exchange rate fluctuated, meaning that everything was suddenly costing her more, which she also hadn’t factored into her carefully planned budget.

She told Business Insider that she initially withdrew cash using her debit card, since her institution covered ATM fees, but “the exchange rates weren’t good, and Mexican bank rates were worse.”

She then learned about an app that offers lower cost international money transfers. She was able to set alerts so she could move money when the rates were at certain levels, which allowed for “more control over my cash flow.”

You may face other unexpected expenses

Another line item that ended up costing Ge more than she was expecting was transportation.

She had thought she’d be able to rely on public transit, but not being familiar with her surroundings made it difficult — especially when stops were not clearly marked and she faced a language barrier. She ended up spending more on taxis than she had budgeted for.

She also found that some vendors would charge her higher prices than they would locals. Not being familiar with what things typically cost was a hindrance. “Those small expenses really added up in those first few months,” she told Business Insider.