4 Retirees Reveal: What Finances Drove Them to Flee the U.S. as Expats

• Several elderly Americans mentioned that they relocated overseas since they found it unaffordable to have a decent retirement within the U.S.
• They mentioned expensive health insurance premiums and housing prices as factors behind their relocation.
• The financial benefits of relocating were detailed by four retired individuals who chose to settle in Costa Rica, Ecuador, and Spain.

Amy Glenn felt as though she had no alternative but to leave the US .

Glenn, who is 72 years old, mentioned that she can't manage to cover the costs of living. Texas following years of instructing political science and economics at a college and more than ten years in the academic field, caring for her parents She was concerned about her $1,200 for full-time. Social Security It wouldn't suffice to live comfortably in the US.

In January 2023, she spent $165,000 on a house in Costa Rica Every month, she allocates $300 for groceries, $70 for electricity, and $80 for medicines and medical appointments.

Glenn mentioned, "I wouldn’t have purchased so much property in the US otherwise, which significantly eases my concerns since I am assured of not becoming homeless." He added, "All the financial strain has been lifted from me."

In recent years, numerous Americans living abroad have shared with Business Insider their motivations for doing so. moving abroad Many people, such as retired individuals, have cited increased expenses in the U.S. as a significant reason for moving to more affordable nations. Mexico , Ecuador , and Spain .

Data from the Bureau of Labor Statistics indicates that consumer prices have risen by more than 23% since 2020. Inflation generally impacts older Americans more challenging as they typically rely on fixed incomes from retirement savings or Social Security.

Over 760,000 U.S. citizens living overseas get their Social Security benefits annually. The data shows this as well. Social Security Administration indicates that the typical American received an average monthly Social Security benefit of $1,976 as of December 2024.

"There are many individuals who lack adequate retirement savings to complement their Social Security benefits," said David John, a senior strategic policy advisor at AARP. previously told BI. "For many individuals, Social Security is their primary source of income during retirement. This implies that some might not achieve the type of post-work life they had envisioned."

Many elderly Americans are contemplating relocating overseas as the main path to an enriching retirement due to this dilemma.

Elders aim to reside in places with affordable expenses and excellent living conditions.

A number of elderly Americans possess the economic resources to reside in the U.S., yet they recognize this might not represent the optimal use of their funds or match the way of life they aspire to maintain over time.

Shawna Lum, a relocation coach based in Spain who has assisted retirees with moving overseas, told Business Insider that lower living costs are particularly attractive to retirees with limited budgets.

A major factor driving my clients to relocate overseas is affordability, particularly among retired individuals with limited income," Lum explained. "They often discover that places such as Spain, Portugal, Italy, France, Mexico, Costa Rica, Colombia, and Panama allow them to maintain a comfortable lifestyle solely on their Social Security benefits—a scenario that proves unattainable for many within the U.S.

Consider Sandy Berenhaus, a clinical audiologist who retired from her consulting practice in 2024 at the age of 73. Previously, she had substantial savings And investments distributed among various assets.

Even though Berenhausen had the option to keep residing in her $4,000-per-month upscale apartment in New Jersey — a two-bedroom, two-bathroom space complete with an individual indoor parking spot and a shared swimming area — she understood that depending on this was not advisable. Social Security As her primary source of earnings could render retirement in the U.S. economically difficult.

I consider my savings and investments substantial, yet they remain at risk of diminishing considerably over time unless I make considerable adjustments to how I live, let alone handle unexpected emergencies," Berenhaus stated to BI. She further noted, "I’m not a millionaire If I lose my Social Security, that would be a significant issue."

Apart from financial considerations, Berenhaus mentioned that the polarizing politics in the U.S. started to deter her. She sought out a location where she could genuinely savor living.

Following a discussion with Lum earlier this year, Berenhaus decided to relocate and settled in Barceloneta, a coastal district within Barcelona, Spain. She now resides in a two-bedroom rental property offering sea vistas at a cost of $2,000 per month.

She remarked, 'Barceloneta serves as an ideal launchpad for my upcoming phase.' She explained that residing there lets her indulge in numerous individual interests without the high costs associated with New York City. The area provides easy access to music spots, dance venues, and picturesque beaches right outside her door. Additionally, she enjoys the company of welcoming residents along with a substantial community of like-minded international transplants.'

Some older Americans have been forced into financial strain due to healthcare expenses.

In 2020, Stephen Vargha, who was then 66 years old, departed from his position at a North Carolina TV station. Initially, he anticipated working for several more years before retiring. enjoying his retirement In the mountains, where he purchased a house in West Jefferson.

However, Vargha struggled to find work Even though he expressed willingness to accept a reduced salary, he mentioned that he did not get "a single phone call" when seeking employment opportunities, which concerned him greatly. During their calculations regarding retirement funds, both he and his spouse found out that their monthly health insurance premium of $1,930—excluding deductibles—would amount to approximately $150,000 over the following seven to eight years.

Vargha and his spouse opted for a new course of action: moving out of the U.S. to another country with lower living costs and more accessible healthcare services. Leveraging his monthly Social Security benefit of $2,400, he chose to settle down in Cuenca, Ecuador. After tax deductions, Vargha’s net pension amounts to $570 per month. Prior to their departure from the U.S., the couple collectively possessed around $850,000 in total assets.

In Cuenca, located in the Andean highlands, they purchased a condominium of approximately 1,200 square feet for around $150,000. According to Vargha, their monthly expenses include paying $177 for health insurance, $22 for property taxes as opposed to $285 in the U.S., and $39 for homeowner’s insurance instead of $145 stateside. Their grocery bills amount to roughly $600 per month, which is fairly comparable to costs back home, whereas dining out and leisure activities cost them about $300 every month.

Vargha mentioned, "In the US, while we were both employed, we couldn’t accomplish as much. Back then, dining out was limited to about once a week due to our budget constraints. Now, we enjoy eating out between eight to ten times each month."

Brenda Price, aged 59, additionally mentioned healthcare costs Also encouraged her to relocate overseas from Minnesota.

Throughout much of her career, Price was involved in international finance and decided to retire early at the age of 55. She became disillusioned with the high costs, including more than $1,000 each month in insurance premiums along with a yearly deductible of $10,000. Additionally, she had to pay $2,200 every month plus utilities for a small studio apartment.

Although we could have made it function, our way of life would have significantly differed due to substantially lower expenses compared to those in the U.S.," Price stated. "Our options were constrained, limiting our spending capacity.

Two years back, Price along with her spouse relocated to Valencia, Spain. The couple pays $1,500 monthly to lease a 1,200-square-foot flat which includes both a balcony and a terrace.

She mentioned that groceries were priced at 30% to 40% lower than usual, whereas health insurance set them back around $200 each month. According to her, a single ride on public transport was approximately 40 cents, and visiting a museum would cost roughly $2. She approximated their spending on various activities to be close to $200 per month and estimated that they spent about $300 on Spanish lessons. Additionally, she has appreciated how affordable traveling can be; for instance, she took a trip to Morocco where flights cost around €80, which converts to nearly $83.

“I’m quite meticulous about managing our budget, knowing precisely how much we can and should be spending,” Price stated. “We’re thoroughly content where we are and currently have no intentions of moving.”

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