More older Americans are weighing the cost of retiring abroad as rising living expenses pressure household budgets and reshape retirement plans.
AARP has identified 10 international destinations where couples may be able to enjoy a comfortable lifestyle on monthly budgets ranging from $1,440 to $3,305, potentially offering an alternative to the higher costs of retirement in the United States.
The financial pressure is becoming harder to ignore, with the 2026 Social Security cost-of-living adjustment adding an average of $56 per month to retirement benefits, based on Social Security Administration (SSA) data.
Interest in moving overseas is growing. A February 2025 Harris Poll found that 26% of baby boomers surveyed had considered relocating abroad between 2023 and 2025, and 49% of all respondents weighing a move identified a lower cost of living as their primary motivation.
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10 destinations offering a lower cost of living
Kathleen Peddicord, founding publisher of Live and Invest Overseas and a veteran of international living and working for more than four decades, compiled the rankings using monthly rent and utilities on a two-bedroom apartment, transportation, internet and phone service, groceries, and entertainment.
The figures offer a starting point for retirees comparing destinations, although actual costs will vary depending on lifestyle, housing choices, healthcare needs, and exchange rates.
Hua Hin, Thailand, is the cheapest at $1,440 a month. The former royal beach town is known for its clean surroundings, widespread English proficiency, and affordable living.
Crete, Greece, costs about $1,830 a month, with rents from $500 and taverna meals around $18. Public and private healthcare services are concentrated around major centers such as Chania and Heraklion.
Tarragona, Spain, comes in at $2,008, cheaper than Madrid or Valencia, with access to Spain’s public health system and Barcelona under an hour away by train.
Mendoza, Argentina ($2,000), offers an $800 two-bedroom and universal public healthcare. The Cayo District of Belize ($2,179) sits in English-speaking rainforest country with thin hospital infrastructure. Sardinia, Italy ($2,180), has off-track homes from $400.
Las Terrenas, Dominican Republic ($2,225), opened a full-service hospital in 2021, ending long drives to Santo Domingo. Boquete, Panama ($2,400), uses the U.S. dollar, removing currency risk for Social Security payments.
At the top, Portugal’s Algarve ($3,085) hosts an estimated 100,000 retired expats with access to both public and private healthcare, while Puerto Vallarta, Mexico ($3,305), offers an international clinic where English-speaking consultations run as little as $40.
Financial strain is pushing boomers to explore overseas options
Among Harris Poll respondents who had considered leaving the country, 86% ranked seeking a more affordable cost of living as the most important factor in their decision.
More than two-thirds (68%) of Americans in the same survey said they felt they were merely surviving financially, with the figure reaching 77% among households earning less than $50,000 annually.
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Housing affordability was another major concern, with 68% of respondents agreeing that buying a home has become unaffordable for most citizens. This belief crossed income brackets and partisan lines, helping explain why many older households are now weighing an overseas move based on cost alone.
Altogether, 42% of United States adults told the Harris Poll they had at least considered an international relocation within the prior two years, a share large enough to suggest overseas retirement has entered mainstream financial planning.
A growing number of Americans are considering retirement abroad as rising living costs, housing unaffordability, and financial strain reshape their future plans.
Social Security benefits can help make overseas retirement possible
Overseas retirement on a fixed income works in large part because Social Security benefits travel with the retiree. The SSA continues payments to eligible citizens living in most foreign countries, and the Department of State reports that annual disbursements to more than 760,000 beneficiaries abroad exceed $7.5 billion.
Payments reach beneficiaries in more than 150 countries, with Canada, Japan, and Mexico among the largest recipient nations, the Department of State shows.
That steady dollar-denominated income is what makes a cheap destination viable for Americans on a fixed budget, according to Peddicord, whose company publishes resources on living and investing in more than 40 countries.
Peddicord told AARP that the pattern across her clients is consistent, regardless of destination or budget level.
<strong>Most Americans who consider moving overseas in retirement do so for budgetary reasons</strong>.
Healthcare is one of the most important factors to evaluate before leaving the United States.
Medicare does not cover healthcare received outside the United States, which means retirees abroad must arrange local insurance or enroll in a host country’s public health system.
The standard Part B premium of $202.90 per month in 2026 still applies to enrollees who maintain their coverage, despite not being able to use it overseas, the Centers for Medicare and Medicaid Services announced in its 2026 Medicare Parts A & B premium release.
What retirees should consider before making an international move
Peddicord’s guidance to AARP emphasises the importance of choosing a destination based on the life a retiree wants to live, rather than focusing exclusively on the lowest possible monthly budget.
That means considering daily routines, social connections, climate, language, transportation, and access to hobbies and activities. A destination that looks affordable on paper may not be suitable if it leaves someone isolated or makes essential services difficult to reach.
The SSA’s Payments Abroad Screening Tool allows individuals to verify whether their benefits will continue without interruption at a given destination.
For American retirees facing rising expenses, an overseas move may create more room in the budget. The strongest financial case, however, comes from comparing realistic living costs with reliable income, confirming benefit and visa eligibility, and making sure healthcare and everyday needs can be met over the long term.
Related: Can you retire abroad on Social Security alone? We checked 4 countries
