I moved from Minneapolis to Mexico when I was 54 in search of an affordable place to retire. My cost of living dropped by 50% — but living abroad later in life has its challenges

According to the Federal Reserve, people in the United States aged 65 to 74 have a median retirement savings balance of around $200,000. Still, even with Social Security benefits, this amount is quite limited.

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Without the need for a medical exam or blood test.

LeGeros still hasn't started collecting Social Security benefits, and he's manageing to get by because his living expenses are around 50% lower than what they would be if he were back living in Minnesota.

While living abroad has enabled LeGeros to stretch his savings, it has also introduced him several challenges. Here’s what you should consider before retiring in a foreign country.

The Growing Trend of American Expats
More and more Americans are choosing to retire abroad, seeking a new chapter in sunnier climates, lower costs, and a break from the country's highly complex healthcare system.
Some popular destinations for American expats include:
1. Chiang Mai, Thailand: Known for its affordable cost of living, rich culture, and world-class healthcare.
2. Cuenca, Ecuador: Offered excellent medical care and relatively low cost of living.
3. Puerto Vallarta, Mexico: Expansive beaches and a vibrant expat community draw Americans to this popular retired destination.
4. Hanoi, Vietnam: The city's affordable cost of living, rich history, and modern infrastructure have made it an attractive option for retirees.
5. Costa Rica: Their "Pura Vida" lifestyle greatly appeals to American expats, with warm weather, high quality of life, and eco tourism opportunities like zip lining.
There are several motivations behind this increasing trend, including differences in lifestyle, taxes, and the system of healthcare.

According to the Social Security Administration, more than 760,000 elderly Americans are currently receiving benefits living outside of the country. It's clear, however, why this is becoming a popular choice for many.

The cost of living can be lower overall, depending on where you choose to go. Starting up, LeGeros pays $600 a month for an apartment in Puerto Vallarta; according to Zillow, the median rental price in Minneapolis is $1,595. He notes that, even considering his IRA provides a generous income given his current expenses, it wouldn’t be simple to live off his savings in the U.S.

The standard monthly premium for Medicare Part B, which provides coverage for outpatient care, is $174.70 in 2024, translating to nearly $2,100 per year. This amount is in addition to what you would pay for Part D, a supplementary coverage that's required for prescription medication.

In Mexico, individuals with a temporary or permanent visa can obtain health coverage through the Instituto Mexicano de Seguro Social (IMSS), Mexico's national health care program. The annual cost for residents is approximately $500.

The cost of living in the United States is skyrocketing –

"Expats often face a wide array of challenges when it comes to retiring abroad. Here are some of the key issues they can encounter:
1. *Cultural adjustments**: Moving to a foreign country requires adapting to a new culture, customs, and way of life.
2. *Language barriers**: Not speaking the local language can make everyday tasks difficult and limit social interactions.
3. *Language and communication: Effective communication is crucial when dealing with healthcare, finances, and official documents.
4. Finding reliable healthcare: Access to high-quality medical care can be a major concern when living in a foreign country.
5. Navigating financial systems: Understanding local banking and tax systems can be complicated.
6. Emergency or medical evacuations**: Having a plan in place for emergencies can provide peace of mind during retirement.
7. Getting familiar with local customs and etiquette.

There may be financial benefits to retiring in another country, but it's not all sunshine. Speaking of which, not knowing the local language can be a major challenge. Admittedly, you can try to learn, but you may struggle to ever feel completely confident. This could force you to settle for living in larger cities abroad where English is more widely spoken, which might in turn reduce any savings you're hoping to enjoy.

LeGeros admitted to Business Insider that he had difficulty navigating social situations and knowing when to attend functions. He also noted that drivers in Mexico are less cautious than what he's accustomed to in the US, which as a cyclist, proved to be a perilous combination, causing him to be struck by a car and narrowly avoid a serious injury.

While having healthcare that's affordable in another country may not guarantee access to quality care, especially for those with medical conditions. There may be language barriers when navigating the healthcare system abroad, and varying levels of care could also be encountered.

Leaving familiar surroundings and loved ones behind can be particularly challenging. Even more so when you're a new face in town and everything about you is different from the people you're trying to connect with, making it tougher to establish a new social circle.

Keep in mind that moving abroad can be a real challenge. While it can be achieved, you'll need to be well-prepared. Be sure to do a thorough amount of research before making the decision to retire overseas. It's not always as exciting as it appears to be. Consider testing the waters by spending three to four months in a new location before fully committing. This way, you'll have a way out if the experience doesn't meet your expectations.

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"When alternatives to traditional blood testing and medical exams are sought, we should consider the role of specialized imaging studies and screenings. In addition to medical history, a physical exam can certainly provide valuable information before deciding to undergo a full medical examination in a doctor's office.
It's worth considering the wider scope of preventive care, from patients who require regular check-ups to those with symptoms that need to be managed.

This article serves for informational purposes only, and its content should not be considered as guidance or recommendations. It is being offered without any guarantee or warranty of any kind.