Moving abroad could provide lower costs of living and better lifestyles for relocating retirees.

• Financial experts suggest that settling abroad could be an attractive option for seniors looking to cut costs and improve their standard of living.
• The number of retirees receiving Social Security benefits outside the U.S. increased from around 250,000 in December 2003 to over 450,000 in December 2023.
• Moving overseas as a retiree could potentially result in cost savings on housing and health care, but it's important to carefully consider various factors before making such a decision.

Financial experts suggest that seniors seeking to minimize costs and enhance their lifestyle may find the prospect of relocating abroad attractive.

Nearly one-third of retirees have relocated either domestically or outside the country after leaving the workforce, according to a new CNBC survey of more than 6,600 U.S. adults in early August.

According to the survey, some of the most common reasons for retiree moves include a lower cost of living, a more comfortable lifestyle, and better weather.

Some older Americans are choosing to spend their golden years abroad rather than in a less expensive city or state.

The number of retirees receiving Social Security benefits outside the U.S. has increased from less than 250,000 in December 2003 to over 450,000 as of December 2023, according to the latest Social Security Administration data.

"Leo Chubinishvili, a certified financial planner at Access Wealth in East Hanover, New Jersey, stated that the number of people seeking financial planning services increases every year and he believes this trend will continue."

A 2024 survey from Prudential Financial revealed that despite decreasing inflation, substantial modifications to retirement plans are still being prompted by rising costs.

Approximately 45% of U.S. households are predicted to run out of money in retirement if they retire at age 65, according to a Morningstar model that took into account spending, investing, life expectancy, and other factors.

Some retirees can increase their savings by residing in areas with lower housing, healthcare, and other expense costs, according to Chubinishvili.

Many who move want 'cultural exchange'

CFP Jane Mepham, founder of Elgon Financial Advisors in Austin, Texas, stated that some retirees are driven to relocate abroad for cultural exchange.

""Traveling is what people really desire," she stated."

Planning for retiring overseas involves understanding visa and residency requirements, local laws, international taxes, and other logistics.

You won't be covered by Medicare when traveling abroad, according to Mepham.

Consider your 'life priorities'

"Several expat clients that CFP Jude Boudreaux, partner and senior financial planner with The Planning Center in New Orleans, works with, find living abroad to be a money-saving option, depending on their lifestyle choices," said Boudreaux.

Boudreaux, a member of CNBC's Financial Advisor Council, stated that other factors, such as proximity to aging parents or grandchildren, can significantly impact the decision.

According to the CNBC survey, among retirees who moved, 36% wanted to be closer to family, which is only slightly lower than the 37% seeking a lower cost of living.

Your retirement and the possibility of living abroad may change in the future based on your circumstances, he stated.

""Clarity about life priorities aids in making good decisions," Boudreaux stated."

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