A comfortable retirement, where you can enjoy your leisure and explore new opportunities, is a long sought-after goal for so many. And in today’s world, where the cost of living can challenge your retirement savings and income, and where social, cultural, or political winds can make you rethink your sense of where you belong, it may be enticing to consider a new environment for when you retire: perhaps a place you’ve previously enjoyed or a location you’ve always wanted to see. But before you pack up your belongings or exchange your currency, it’s important to understand what it means to settle down in another country and how that will affect your living standards and quality of life as you enter your later years.

The considerations are significant and go well beyond the usual lists of “best places to retire.” While it is true that over 700,000 Americans are living an “international” retirement life (as of 2022, according to Social Security data), whether or not that makes sense for you (or is even a possibility) will very much depend upon the country you’ve set your sights on, including their tax policies, the visa requirements for someone who wants to “retire” in that country (as opposed to working there) and the cost of living. For example, for many years Portugal was considered the ideal European country in which to retire, with its beautiful geography, easy visa requirements, and relatively affordable cost of living. But no more: It’s become such a draw that the cost of housing in Portugal has skyrocketed, making it beyond the means of most retirees.  Other countries that often draw American retirees, such as Canada, Singapore, and Australia all now make it more difficult for American retirees to get visas to stay in the country. Countries also may have income requirements for those who want to settle there. So even if you think you can afford to create your “fantasy” retirement life in a place like Mexico, you need to understand that Mexico now requires retirees who want permanent residency to have an income of at least $7300 per month. It’s not uncommon for countries to either have a minimum monthly income requirement or to require retirees to have significant money to either invest in the country or keep in local asset management firms.

Furthermore, determining where it makes sense to retire can be a moving target. Visa requirements, income requirements, tax policies, and exchange rates can all fluctuate or change. You’ll need to understand how and whether the country in which you land will tax your income earned in the United States or whether the United States can tax income you acquire in another country. You’ll also have to understand whether your American-based investment and retirement accounts have any limitations on drawing from them outside of the United States.  In essence, you’ll need to put aside your “vacation” mentality and truly understand the nitty-gritty of what living and surviving in your new country may require. For one man’s description of the positives- and challenges- of retiring in Mexico when you don’t speak the language and have difficulties creating a social life, put down your margarita and look here.

Some services and consultants specifically provide expert guidance on what to consider when thinking about an overseas retirement. For example, for those of you with significant assets, you may want to check out this website.  Or this website and business from bloggers Edd and Cynthia Staton which can help those who want the “expat” retirement life figure out what and where will make sense for you. And to get you started, there are always those annual lists of “best of” international places. But just make sure your visions of sandy beaches and temperate weather don’t overtake your understanding of visa, income, and tax policies for your chosen destination. So, with that warning in mind consider these recent lists:

-From Live and Invest Overseas, The Best Places To Retire In 2025, which includes input from real-life ex-pats and suggestions including Cyprus, Belize, France, and Spain

-From US News, Best Places to Retire Overseas in 2025, whose list overlaps with the Live and Invest Overseas list

-From USA Today, Escape to paradise: Explore the 14 best overseas retirement spots for 2025, a list including Argentina, the Dominican Republic, and Panama (also named the best place to retire in 2025 by Travel and Leisure)

-From Quartz, 10 best countries for retirement, ranked, which names Thailand number 10 and Panama number 1

Wishing you all safe travels and smart investigations as you begin to consider where to live your “golden years.”