Positive Aging Thought Leader: Maria Leonard Olsen
There are five things to consider before retiring abroad that most people skip right past—and skipping them is exactly how a dream move turns into an expensive headache.
Have you thought of retiring abroad? Maybe on a beach with swaying palm trees? I certainly have!
My retirement savings will go further if I choose to live outside the United States. Some countries provide incentives for expats to settle in their countries, and the cost of living can be much lower than in the U.S. Living in Portugal’s Algarve region has been described as a “year-long summer camp for adults,” and that sounds enticing to me.
The Top Five Things To Consider Before Retiring Abroad:
1. Visit Before You Leap into It
It would be wise to visit the places under consideration before you move. I personally am intrigued by Montenegro, a small nation on the Adriatic Sea. Its breathtaking landscapes captured my imagination. When I was on Zoom calls there, the backgrounds appeared fake in their grandeur. My Airbnb at the Bay of Kotor’s edge was only about $450 per month, and I spotted many properties for sale. Prices are likely to remain low at least until Montenegro joins the European Union.
U.S. News & World Report chose Greece, Portugal, and Colombia as top picks, due to their offers of user-friendly residency visas and retiree tax perks. They also included Ambergris Caye, Belize; Kotor Bay, Montenegro; Kyrenia, Northern Cyprus; Mazatlán, Mexico; and Valencia, Spain as best retirement destinations. Belize earned extra points for being the only English-speaking country in Central America.
Other countries that have earned high ratings as attractive retirement locations include Thailand, the Philippines, France, Italy, Antigua, Dominican Republic, Malaysia, Georgia, Ecuador, United Arab Emirates, Ireland, Vietnam, and Malta. I have visited most of these, and can vouch for their attractiveness. Each has different advantages and requirements. Another, the tropical paradise of Mauritius, for example, allows ten-year retirement permits to foreign nationals over age 50 with a demonstration of monthly income and minimum bank balances.
2. Talk to Women Who Have Already Retired Abroad
Real Stories from Women Who Made the Move
Dr. Ellen Albertson, 63, a women’s health and happiness coach, decided to move from Vermont to Costa Rica during a vacation there. She and her husband fell in love with a house near the beach and bought it. “It was spontaneous and scary, but we love it here,” Ellen says. “I believe living here has extended my health and my lifespan.” She notes that the Vermont winters got her down and that living in Costa Rica has given her an overall boost. “My joints feel good in the heat, I swim and walk every day, and I teach yoga.” She now spends about five months a year in Costa Rica and the rest in Vermont.
Ellen acknowledges that there have been challenges living abroad. She does not speak Spanish and has had challenges navigating taxes, banking, and other legal matters. She believes that Costa Rica has not kept up with the level of development happening there, but she is learning and has found a good local attorney. She is making the best of her time as an expat, taking steps to become part of the community there. Living in Costa Rica and Vermont has made her appreciate both more, for different reasons.
Diane Amelia Read, 67, moved to Puerto Vallarta, Mexico, for “just a year” so she could surf and continue running her online business. That was more than two years ago, and she has no plans to leave. “We’ve fallen in love with the vibrant contrasts: the daily intensity of life here, flavors, fireworks, music, natural beauty, noise, colors, and the joy of living largely outdoors, exists side by side with an incredibly relaxed vibe,” Diane Amelia says. “Work is taken seriously, but never more than the other parts of life. Everything feels in balance here, and that’s been deeply refreshing.”
Learning how to speak Spanish has been the most difficult thing for Diane Amelia. “I’ve been working hard to improve that, but I am limited,” she laments. “It feels frustrating because I’ve met so many lovely people and I would like to be able to talk with them beyond pleasantries.”
Moving anywhere new is not devoid of challenges. So a thorough investigation can help you have reasonable expectations.
3. Go Where Other Expats Have Paved the Way
Countries with Strong Expat Communities for Retirees
Panama, Portugal, Mexico, and Costa Rica are popular choices for American expats. Each provides benefits to those who choose to settle there, like affordability and climate. Also, thriving expat communities already exist there, so it will be easier to make friends there. Community definitely is important, especially as we age.
4. Use Expert Resources to Research Retirement Cost of Living Abroad
Where to Find Reliable Retire Abroad Tips and Data
International Living’s Annual Global Retirement Index provides a free Blueprint for Your Escape: How to Move Out of the U.S. and Live Better for Less Overseas. This recognized authority on global retirement provides resources for moving abroad and tips on finding safe, welcoming, good-value locations around the world. You may also want to consult the United Nations Human Development Report, an annual index that assigns scores to different countries across multiple areas, including life expectancy, quality of education, gross national income per capita, gender equality and environmental sustainability.
International Living maintains that a couple can live comfortably abroad for approximately $2,000 to $3,800 a month. All of the countries they recommend rank much higher than the U.S. on the Global Peace Index, which evaluates countries on crime rates, political stability and overall security. Violent crime is rare in these places, the communities are close-knit and daily life is less stressful.
In 2025, International Living named Panama as its number one retirement destination. Panama’s modern infrastructure, diverse lifestyle options (like ocean-view condos or lush mountain retreats) and excellent retiree benefits pushed it over the top. Panama offers the Panama Retirement visa, a permanent residency permit that gives tax exemptions and discounts on things like utility bills, transportation and health care services. Plus, the country does not tax foreign income and is located outside the hurricane belt. It has first-world convenience at Central American prices.
5. Check the Visa Requirements
Expat Retirement Visa Options Worth Knowing About
Before moving abroad, consider the visa requirements and what is required to establish residency. You can check these out online.
For those who want to continue to work while living in another country, or who want to try living abroad before taking the full plunge of moving abroad, 68 countries currently allow digital nomad visas. With these visas, people can live and work abroad for six months to a year. Some countries, like Thailand, allow for digital visas to be renewed up to five years.
Are You Ready?
Think about what you want most in your next chapter and how much you will need to have saved to obtain it. You may want to choose a location with year-round warm weather, interesting culture, easy travel opportunities, shorter distance from loved ones, access to an international airport, excellent health care at a fraction of U.S. costs, a lower cost of living, tax savings, and government incentives for expats. Rank what is most important to you, then narrow your list to the countries that can provide your topmost preferences.
Retiring abroad affords unique experiences, tax benefits, and lower living expenses. If you retain a U.S. residence but live abroad for a certain amount of time, your accountant may confirm that no state income taxes will be due. For more on sorting the smart moves from the myths before you go, see financial advice worth ignoring before you make your move.
Safe, welcoming, warm weather, and affordable options exist all over the world. There are vibrant cultures and gorgeous settings to be explored. Where will you go?
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About the Author:
Maria Leonard Olsen is an attorney, author, radio show and podcast host in the Washington, D.C., area. For more information about her work, see www.MariaLeonardOlsen.com and follow her on social media at @fiftyafter50. Her latest book, 50 After 50: Reframing the Next Chapter of Your Life, which has served as a vehicle for helping thousands of women reinvigorate their lives, is offered for sale on this website.
