While there are plenty of affordable, appealing places to retire in the U.S., more Americans are ditching domestic retirement for life abroad—and it’s not just about chasing adventure. According to the Global Intelligence Unit’s Retirement Index, U.S. retirees are looking for cheaper living, top-notch healthcare, mild weather and a slower pace. From Europe to Latin America, here are the best countries to consider when cashing in your 401(k) for a more affordable, fulfilling lifestyle.
Spain tops the GIU Retirement Index, and it’s easy to see why. With its world-class cities, rich culture, and sunny coastlines, Spain offers a balanced lifestyle at reasonable prices. Expect to spend $2,000–$2,500 monthly, with rent in Madrid averaging just under $1,000 outside the city center. Petty theft can be an issue, but overall safety is high.
At number two, Portugal checks all the boxes: warm climate, solid healthcare and a cost of living around $1,900–$2,600 per month. Public health services are available, and private care with English-speaking doctors is accessible, especially in Lisbon. Bonus: It’s the 7th safest country in the world.
A long-time favorite, Costa Rica comes in at number three. This country scores high for its affordable living (as low as $1,000/month), lush landscapes, and public healthcare (CAJA) for all residents. The Pensionado visa requires just $1,000 in monthly income. English is widely spoken in popular expat areas like the Central Valley.
At number four, South America’s hidden gem, Uruguay, blends calm beaches with safety and political stability. Montevideo’s cost of living is about 80-percent less than NYC, and healthcare is both accessible and affordable. The Pensionado Visa requires $1,500 per month in income.
Just south of the border, Mexico ranks number five, combining affordability (from $1,200/month), solid healthcare, and familiar comforts. Expats love places like San Miguel de Allende and Lake Chapala. With rent and groceries significantly cheaper than in the U.S., it's no wonder Mexico ranks fifth.
Whether you're after sun, savings, or simply something new, retiring abroad has never looked more appealing.
Ten best countries for Americans to retire abroad
- Spain
- Portugal
- Costa Rica
- Uruguay
- Mexico
- New Zealand
- Italy
- Canada
- Ireland
- France