12. Relocating Abroad

Geographic arbitrage—moving to a location with a significantly lower cost of living—is a powerful tool for stretching retirement savings. Relocating abroad has become a viable alternative for retirees seeking beautiful climates, vibrant cultures, and affordable housing.

Countries like Costa Rica, Portugal, Panama, and Mexico offer specific retirement visas that simplify the immigration process for individuals with a guaranteed pension or Social Security income. The biggest hurdle to expatriate retirement is healthcare. Traditional Medicare does not cover medical expenses outside the United States. Therefore, you must either buy into your new country’s private healthcare system, purchase international health insurance, or keep a U.S. residence to return home for major medical procedures.