Why Retire Abroad?
Here's a secret most retirement advice ignores: where you retire matters more than how much you save.
Moving from New York to Portugal can cut your retirement costs by 51.2%. That's not an exaggeration—it's actual data.
This guide uses real cost-of-living indices (not opinion) to show you where your money goes furthest.
The Math of Geographic Arbitrage
If you need $6,000/month in the US, you need $1,800,000 saved (at 4% withdrawal).
In Portugal, the same lifestyle costs $2,928/month. You only need $878,400.
That's $921,600 less—or 10-15 years less of working.
Not sure how much you actually need? See How Much Money Do I Need to Retire?
The 7 Best Countries for 2026
1. Portugal
Monthly budget (couple): ~$2,928
Cost of Living Index: 48.8 (vs US = 100)
Portugal has become the top destination for American and Northern European retirees, and for good reason:
- Modern healthcare system (public + affordable private)
- Golden Visa program (investment residency)
- D7 Visa for passive income holders
- Large English-speaking expat community
- 300+ days of sunshine
- Safe with low crime rates
Best for: Beach lovers, wine enthusiasts, those wanting European culture on a budget.
For a detailed breakdown, see our Portugal vs USA cost comparison.
2. Ecuador
Monthly budget (couple): ~$2,142
Cost of Living Index: 35.7 (vs US = 100)
Ecuador uses the US dollar, eliminating currency risk for Americans:
- No currency exchange hassles
- Excellent healthcare in major cities
- Year-round spring-like weather (in the highlands)
- Easy residency with pension visa
- Beach, mountains, and jungle all accessible
Best for: Americans wanting dollar-based simplicity with low costs.
3. Colombia
Monthly budget (couple): ~$1,890
Cost of Living Index: 31.5 (vs US = 100)
Colombia has transformed in the past 20 years and now offers:
- Modern cities (Medellín, Cartagena, Bogotá)
- Excellent healthcare for the price
- Welcoming retirement visa program
- Flights to the US in 3-5 hours
- Growing expat infrastructure
Best for: Those wanting a vibrant, improving economy with urban amenities.
4. Thailand
Monthly budget (couple): ~$2,280
Cost of Living Index: 38 (vs US = 100)
Thailand pioneered medical tourism and remains a top choice:
- World-class healthcare at low prices
- Incredible food culture
- Easy long-term visa options
- Beaches, mountains, temples
- Excellent infrastructure
Best for: Those seeking maximum value, Asian culture, and warm weather year-round.
Read our complete guide: Retire to Thailand in 2026
5. Mexico
Monthly budget (couple): ~$2,640
Cost of Living Index: 44 (vs US = 100)
Just a short flight from the US, Mexico offers:
- Familiar culture for Americans
- Easy residency via retirement visa
- Quality private healthcare
- Pacific and Caribbean beaches
- Large established expat communities
Best for: Those wanting to stay close to family in the US/Canada.
Read our complete guide: Retire to Mexico in 2026
6. Malaysia
Monthly budget (couple): ~$1,974
Cost of Living Index: 32.9 (vs US = 100)
Malaysia's MM2H (My Second Home) program attracts retirees with:
- English widely spoken
- Excellent healthcare
- Modern infrastructure
- Tax-friendly policies
- Cultural diversity
Best for: Those wanting a modern Asian destination with English accessibility.
7. Bulgaria
Monthly budget (couple): ~$2,514
Cost of Living Index: 41.9 (vs US = 100)
The cheapest EU country offers unexpected value:
- EU membership (ease of travel)
- 10% flat income tax
- Beautiful Black Sea coast
- Affordable mountain retreats
- Historic culture
Best for: Those wanting EU residency rights at the lowest cost.
How Many Years Earlier Could You Retire?
Here's what geographic arbitrage does to your timeline:
- $1M saved, need $6,000/yr: Retire years earlier in Portugal vs USA
- $500K saved: May never retire in USA, but comfortable in Portugal
- $300K saved: Impossible in high-cost areas, achievable in low-cost countries
The person who "can't afford to retire" in California might be 5 years ahead of schedule in Lisbon.
What About Visas?
Residency varies by country and citizenship. The most common paths:
Retirement/Passive Income Visas:
- Portugal D7 (€760/month income)
- Mexico Residente Temporal ($2,800/month income)
- Ecuador Rentista ($1,275/month income)
Investment Visas:
- Portugal Golden Visa (€500K+ investment)
- Spain Golden Visa (€500K property)
- Greece Golden Visa (€250K property)
Digital Nomad Visas:
- Portugal, Spain, Greece, Croatia, and 50+ countries now offer these
Your citizenship also matters—EU citizens can retire anywhere in the EU. Americans face more paperwork but have many options.
Healthcare Abroad
The biggest fear: "What about healthcare?"
Reality: Many countries have better healthcare outcomes than the US at a fraction of the cost.
- Portugal: Excellent quality, €50-100/month private insurance
- Thailand: Excellent quality, $50-100/month comprehensive
- Mexico: Good-Excellent quality, $100-200/month private
- Colombia: Good-Excellent quality, $100-150/month private
Medical tourism exists for a reason. Americans fly to these countries for surgeries because the quality is high and prices are 70-80% lower.
The Realistic View
Moving abroad isn't for everyone. Consider:
Challenges:
- Distance from family
- Learning a new culture/language
- Different bureaucracy
- Homesickness
Solutions:
- Choose locations with easy flights home
- Start with a 3-6 month trial
- Join expat communities
- Learn basic local language
Many retirees split time: 6 months abroad, 6 months near family.
Your Next Steps
- Calculate your current retirement number
- Calculate it for 2-3 countries that interest you
- See how many years you could save
- Plan a scouting trip (live there 1-3 months)
- Make an informed decision
Want to see which countries you could move to based on your citizenship and budget? Try our free Escape Plan tool.