Jan 27, 2026
For decades, retiring abroad sounded like a niche fantasy reserved for adventurous expats or budget travelers. In 2026, it’s becoming a mainstream financial question for Americans worried their savings won’t stretch far enough at home.
New analysis highlighted by Newsweek (1) shows 10 destinations emerging as top “retirement havens” for Americans. These places stand out for affordability, health care access, safety, climate and lifestyle — at a time when U.S. housing, health care and everyday costs remain stubbornly high.
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According to the Social Security Administration, 463,480 Americans already receive retirement benefits while living abroad (2), and that number has been steadily rising: In 2020 (3), it was 441,268 and five years before that, in 2015 (4), it was 390,368. That’s an increase of nearly 19% in just 10 years.
Citing a 2025 Nationwide survey, Newsweek reports that more than half of retired Social Security recipients report cutting discretionary spending, and nearly one-third say they’ve cut essentials such as groceries and medications.
Against that backdrop, retiring abroad is no longer just about wanderlust. For many, it’s a calculation about cost, stability and quality of life.
The 10 retirement havens Americans are watching
In its 2026 Overseas Retirement Index (5), here are the destinations Live and Invest Overseas ranked highest for Americans considering retirement, based on factors such as cost of living, health care, safety, infrastructure, expat communities, taxes and residency rules:
1. Boquete, Panama
2. Algarve, Portugal
3. Puerto Vallarta, Mexico
4. Gascony, France
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5. Crete, Greece
6. Tarragona, Spain
7. Santa Familia, Belize
8. Hua Hin, Thailand
9. Kotor, Montenegro
10. Las Terrenas, Dominican Republic
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What these locations share is cost relief. Newsweek notes that monthly living expenses in these destinations are between 34% and 71% lower than in the U.S. For context, according to data from the U.S. Bureau of Labour Statistics (6) Americans aged 65 and older, on average, spent about $5,119 per month in 2024.
In Boquete, a retiree’s estimated monthly budget is about $2,400. In Portugal’s Algarve, around $3,085. In Puerto Vallarta, roughly $3,305. At the lower end, Hua Hin, Thailand, comes in near $1,442 per month, while Crete is estimated at $1,830 — the smallest budget among the top 10.
Health care costs are another major driver.
The U.S. has the world’s most expensive private health care system, with international private medical insurance premiums averaging nearly $18,000 per person per year, according to the 2025 SIP Health Cost Index (7). Many of the listed destinations offer modern health care at a fraction of that cost, though coverage, quality and access can vary significantly by region.
Kathleen Peddicord, founder of Live and Invest Overseas, has described the 2026 index as a turning point, with polls suggesting roughly one-third of Americans (117 million people) say they would like to settle in another country someday — an idea that may have once felt fringe but is now squarely in the mainstream.
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What to consider when retiring abroad
Housing costs, rising insurance premiums and concerns about long-term affordability could push more retirees to look beyond U.S. borders. Lifestyle benefits, such as walkable cities, a slower pace and stronger community ties could also influence a relocation wanderlust.
Still, no country is a guaranteed “cheap” or “perfect” solution. Retiring abroad introduces complexities that many people underestimate.
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Medicare generally does not cover care outside the U.S. (8), meaning retirees must rely on local systems, private insurance or out-of-pocket payments.
Social Security benefits can be paid overseas, but not in every country, and regional banking logistics matter. U.S. citizens must also continue filing U.S. tax returns no matter where they live — and may face additional local taxes depending on residency rules and tax treaties.
Distance from family, language barriers, political stability and long-term visa requirements all deserve serious consideration as well. What works at age 65 may feel very different at 80.
Retiring abroad can make financial sense for Americans with moderate savings, flexible lifestyles and a willingness to navigate bureaucracy and cultural differences. It may be less suitable for those who rely heavily on Medicare, want frequent in-person family contact or are uncomfortable managing health care and legal systems in another country.
Consider renting a place in a foreign destination for several months rather than buying immediately. Then, consult tax and immigration professionals before making a full-time commitment.
The right retiree can potentially unlock affordability and quality of life in one of these “retirement havens.” For others, staying closer to home may offer peace of mind money can’t buy.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Newsweek (1); Social Secuirty Administration (2), (3), (4); Live and Invest Overseas (5); Federal Reserve Bank of St. Louis (6); SIP Medical Family Office (7); Medicare (8)
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Monique Danao is a highly experienced journalist, editor and copywriter with 8 years of expertise in finance and technology. Her work has been featured in leading publications such as Forbes, Decential, 99Designs, Fast Capital 360, Social Media Today and the South China Morning Post.
