Choosing where to retire comes down to more than scenery: compare the real cost of retiring in the U.S. with what your money can afford abroad.

Fact-Checked By: Maya Whitfield—Senior Travel Editor at WakaAbuja

Most best-places-to-retire lists hand you a ranking and assume you already know whether you want to stay in the U.S. or move abroad. That is the wrong first question to skip. It changes everything from your healthcare to your tax return. I have watched friends retire to Portugal and friends retire to Florida, and the ones who were happiest were the ones who answered this question honestly before they picked a location.

Here is how to answer it, plus a side-by-side look at the strongest options in both categories.

Jump to: Domestic or Abroad? | Best U.S. Picks | Best Abroad Picks | Side-by-Side Comparison | Medicare & Social Security | How to Test a Place | FAQ

Key takeaways

• Decide domestic vs. abroad first. The answer changes your healthcare, taxes, visa needs, and distance from family.
• Medicare does not work abroad. You will need private international health insurance, which typically costs $150 to $500 per month per person (confirm the latest price directly with the operator).
• Social Security follows you almost anywhere. You can receive U.S. Social Security payments in most countries, but a few have restrictions.
• U.S. retirement hubs are still the cheapest for healthcare. Sarasota and Green Valley have strong hospital systems without the visa hassles of going abroad.
• International cost of living savings are real but shrinking. Portugal and Costa Rica have gotten more expensive as retirees move in.
• Test before you commit. A 3-month trial stay saves you from an expensive mistake and costs far less than moving twice.

Domestic or Abroad: Which Retirement Path Is Right for You?

The honest answer is that most people think they want to retire abroad and then decide to stay in the U.S. once they understand the healthcare math. Others go the opposite direction after a winter in Minnesota convinces them to try Portugal. The question is not which is “better.” It is which set of trade-offs you can actually live with.

What you keep by staying in the U.S.

You keep Medicare. That alone is a major financial advantage, because Medicare Part A is free for most people and Part B premiums are heavily subsidized. You keep the ability to be near family and old friends. You avoid the cost and paperwork of a visa and residency application. And you avoid having to file taxes in two countries, which gets complicated fast.

What you gain by retiring abroad.

You gain purchasing power. In Portugal, Panama, or Costa Rica, a couple can live comfortably on $2,000 to $3,000 per month, which is less than half the cost of a comparable lifestyle in coastal California (confirm the latest price directly with the operator). You gain climate, culture, and a slower pace. You also gain a sense of adventure that many retirees say was the best part of the decision. What you lose is proximity, the automatic safety net of U.S. healthcare, and the simplicity of a single tax system.

Best Places to Retire in the U.S. This Year

U.S. News ranks Sarasota, Florida, as the number one place to retire this year, and the data backs it up. The city has strong healthcare, low taxes, and a well-established retiree infrastructure. But the best fit for you depends on what you value most.

Sarasota, Florida

Sarasota tops the U.S. News rankings for retiree happiness, healthcare, and tax friendliness. The city has two major hospital systems, no state income tax, and a long stretch of cultural amenities, including the Ringling Museum and a serious theater scene. The trade-off is housing cost: median home prices are around $500,000 and climbing (confirm the latest price directly with the operator).

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Green Valley, Arizona

Green Valley is a purpose-built retirement community south of Tucson with over 20,000 residents, most over 55. It has one of the highest concentrations of retiree-focused healthcare in the country and a dry climate that helps with arthritis and respiratory issues. Housing is more affordable than Sarasota, with median prices around $300,000 (confirm the latest price directly with the operator).

Elgin, Illinois

Investopedia’s healthcare-focused ranking placed Elgin at number one nationally for retiree healthcare access, based on the density of ambulatory care facilities and hospital quality. Elgin is a suburb of Chicago with a lower cost of living than the city and access to some of the best hospital systems in the Midwest. State income taxes apply, but Illinois does not tax retirement income, including Social Security and pension income.

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Best Places to Retire Abroad This Year

International Living’s Global Retirement Index ranks Greece number one this year, followed by Panama, Costa Rica, Portugal, and Mexico. The rankings reflect cost of living, healthcare, visa friendliness, and quality of life. Here are the highlights.

Portugal

Portugal has become the most popular retirement destination in Europe for Americans. The D7 visa requires proof of passive income of around 870 euros per month for a single applicant (confirm the latest price directly with the operator). Healthcare is excellent, English is widely spoken, and the cost of living is roughly 40 percent lower than the U.S. Lisbon and Porto are more expensive than the Algarve or the Silver Coast.

Panama

Panama offers the Pensionado visa, one of the most generous retiree visas in the world. It requires a minimum monthly pension of $1,000 and gives you permanent residency, duty-free import of household goods, and discounts on healthcare and transport. Panama uses the U.S. dollar, which eliminates currency risk. Panama City has modern hospitals and a low cost of living outside the central business district.

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Costa Rica

Costa Rica is the most popular retirement destination in Central America. The Pensionado visa requires a monthly pension of $1,000. The country has a universal public healthcare system and excellent private hospitals in San José. The Central Valley, around Atenas and Grecia, offers the best combination of climate, healthcare, and affordability.

Greece

Greece topped International Living’s index this year, largely for its cost of living and visa path. The Greek Golden Visa requires a real estate investment, but the financially independent visa offers a lower-cost route with proof of steady income. Athens and Thessaloniki have strong hospitals and low rents compared to Western Europe. The islands are less practical for year-round living because of healthcare access and ferry schedules.

U.S. vs. Abroad: Side-by-Side Comparison

Here is how the top destinations stack up on the metrics that matter most. Costs are for a couple and exclude travel and one-time relocation expenses (confirm the latest price directly with the operator).

What Happens to Medicare and Social Security If You Move Abroad?

Medicare does not cover you abroad.

This is the single most important fact for anyone considering retirement outside the U.S. Original Medicare (Parts A and B) does not pay for healthcare services outside the United States, with very limited exceptions for emergencies near the Canadian or Mexican borders. If you move abroad, you must buy private international health insurance. Costs typically run $150 to $500 per month per person depending on age and coverage level (confirm the latest price directly with the operator).

You still pay Medicare premiums even if you cannot use it.

If you are enrolled in Medicare Part B and you move abroad, you will continue to pay the monthly premium unless you formally disenroll. Disenrolling and later re-enrolling triggers penalties that can raise your premium permanently. This is one of the most overlooked financial traps in retirement abroad, and it is worth a conversation with a financial planner before you move.

Social Security follows you almost anywhere.

You can receive U.S. Social Security payments in most countries. The main exceptions are Cuba and North Korea. Payments are deposited directly into your U.S. bank account, and you can access them with an international debit card. You still need to file your U.S. tax return and may owe U.S. taxes depending on the tax treaty between the U.S. and your new country of residence. The Social Security Administration’s international page lists every country by payment status.

How Do You Test a Retirement Destination Before You Commit?

Spend at least 3 months there first.

A 3-month trial stay in the off-season is the single most valuable investment you can make before committing to a move. You will discover things no guide will tell you: how the town changes in bad weather, how easy it is to get a plumber, and whether you actually enjoy the food culture after 60 straight days. Rent on a short-term lease rather than buying.

Test the healthcare system directly.

Book a routine appointment with a local doctor during your trial stay. This tells you more than any review. Some retirees discover that the healthcare they imagined is not as accessible or affordable in practice, especially outside major cities.

Look at the calendar backwards.

List the six events that matter most to you each year: family birthdays, holidays, medical checkups, and any hobby or club commitments. Then estimate your travel time and cost back to the U.S. for each one. If the total is under two trips a year, moving abroad may be workable. If it is five, the distance will feel harder than you expect.

Use a budget checklist.

Build a monthly budget before you visit, not after. Include rent, food, transport, insurance, visa renewal costs, and travel back to the U.S. Most published cost-of-living estimates are 20 to 30 percent lower than real retiree spending because they exclude one-time and travel costs (confirm the latest price directly with the operator).

Frequently asked questions about retiring abroad and in the U.S.

Plan your trip: booking platforms we trust

These are the platforms I use to plan scouting trips and short-term stays while testing a retirement destination. Always cross-check the property’s own site against at least one of these before booking.

For more planning help, see our travel planning guides, our hotel reviews, our attractions section, and our visa category. When you are ready to book flights, start with our discounted flights page.

WakaAbuja does its best to keep all information accurate at the time of publishing. Prices, policies, and availability change regularly. Always verify with official sources before you travel. We are not liable for errors caused by outdated information. Travel insurance is strongly recommended.