Approaching retirement, many start contemplating life in idyllic locations. There's a universe of options beyond familiar shores that present a plethora of benefits like lower living costs, novel experiences, welcoming weather, and easily accessible healthcare facilities. Though retirement life in the U.S. presents numerous comforts and conveniences, one cannot undervalue the potential for a richer quality of life from a location that aligns with their budget and interests.
A vast majority of Americans prefer retirement within the homeland, whether in their existing homes or new in-state locations, driven by the desire to stay close to family, particularly grandchildren. But if you're considering an adventurous move, consider these 12 best global and domestic retirement destinations.
Taking the road less traveled and setting down roots on foreign soils can be a thrilling adventure. Although, this adventurous spirit depends on your destination choice. Venturing overseas does distance you from the comforts of home and presents linguistic, cultural, political, and economic distinctions that you need to embrace.
Exploring cheaper healthcare, lower living costs, and exploring new horizons is exciting, but living as an expat is very different than being a transient tourist. To make an informed decision, spend at least 6 months in your destination of interest, immerse yourself into cultural nuances, build local networks, and earnestly decide whether you could be genuinely happy there.
With average Social Security retirement benefits at $1,533/month in January 2022, you might find these rewards to be more than adequate for a comfortable ex-pat life, given smart budgeting practices.
However, if you're primed for a predictable routine and proximity to a supportive community, retiring stateside might be a better fit. Although, bear in mind the comparatively higher domestic living costs, burgeoning healthcare, and steep assisted living expenses. Regardless, you might wish to consider a new US location that complements your retirement aspirations.
To navigate the plethora of global destinations, look beyond tourism and envision life as a local. The International Living’s Annual Global Retirement Index curates countries based on 10 comprehensive criteria, and here are the 2021 top six:
Costa Rica: Early pioneers of ex-pat retirement benefits, Costa Rica offers sandy beaches, efficient healthcare, rich biodiversity, tropical climates, friendly inhabitants, nutritious diets, and local delicacies of coffee and chocolates. Nicknamed “Switzerland of Central America,” Costa Rica boasts safety, neutrality, environmental preservation, and adventures like canopy tours, jungle and volcano hikes, sea kayaking, and white-water rafting.
Panama: With a favorable climate, low living costs, reasonable healthcare, and an attractive retirement visa program, Panama stands as a globally acclaimed retirement sanctuary.
Mexico: Welcoming retirees worldwide, Mexico presents balmy climates, cultural riches, stunning natural landscapes, affordable healthcare, strong retirement benefits, and low living costs, hosting over a million American and half-million Canadian retirees.
Colombia: Formerly troubled by conflict and gang-violence, Colombia has transformed itself into a peaceful utopia, attracting tourists and expats with its mountainous landscapes, sandy beaches, and jungle rainforests.
Portugal: Portugal entices expats with its low living costs, plush beaches, fresh seafood, delectable wine, and Lisbon's clean, pedestrian-focused cityscape.
Ecuador: Housing diverse ecosystems, pristine beaches, active volcanoes, and the unique Galapagos Islands, Ecuador offers a low-cost lifestyle, diverse cultures, tasty cuisine, and warm ex-pat communities.
Retiring within familiar boulevards, the WalletHub’s Best & Worst States to Retire rankings, based on affordability, life quality, and healthcare (including COVID-19 statistics) stats, propounds these top U.S. states to retire to in 2021.
Florida: Florida's sunny beaches, warm winters, reasonable living costs, and no inheritance, estate, or state income tax make it an attractive choice for retirees.
Colorado: Ideal for active retirees, Colorado provides four national parks, 32 ski resorts, abundant sunshine, and arenas for numerous recreational activities.
Delaware: This tax-friendly state has no sales tax at state or local levels and no estate or inheritance taxes.
Virginia: Offering both beaches and mountains, the tax-friendly state of Virginia offers endless natural attractions for retirees.
North Dakota: Oddly surprising, North Dakota ranks high in retirement locales due to affordable living costs, numerous doctors, and walkability.
Minnesota: Known for its vast natural resources and abundant wildlife, Minnesota, dubbed the "Land of 10,000 Lakes", provides numerous adventures for retirees.
Whether you're considering domestic tranquillity or foreign adventure, spend ample time visiting places not as a tourist but as a potential resident. Connect with locals, immerse in the native culture, and make informed decisions based on knowledge and lived experiences.
Keep in mind, it's quintessential to collaborate with financial advisors to comprehend potential tax liabilities, budgets, and other monetary aspects. Move forward well-informed, ensuring you can maintain your comfortable life without depleting your retirement funds prematurely.