Compare 8 popular retirement destinations on cost of living, healthcare, residency requirements, and US-side tax obligations. Side-by-side monthly budget breakdowns for housing, food, transport, and healthcare.
Retiring abroad can stretch a Social Security check from "barely making rent" in California to "comfortable expat lifestyle" in Portugal, Mexico, or Thailand. But cost of living is only half the calculation. The other half: residency visa rules, healthcare access for older Americans, the US tax obligation that follows you everywhere, and the practical logistics of moving country.
This tool covers 8 destinations popular with American retirees: Portugal (D7 visa, NHR tax program — being phased out), Thailand (O-A retirement visa, very low cost), Mexico (Temporary Resident visa, proximity to US), Malaysia (MM2H program, world-class private healthcare in Penang), Spain (non-lucrative visa), Costa Rica (Pensionado visa), Panama (Pensionado), and Colombia (M Migrant visa). Each country has a different combo of cost, visa difficulty, healthcare quality, and English-friendliness.
On the US tax side: as a US citizen or green card holder, you continue to file US taxes and pay US tax on worldwide income, regardless of where you live. The Foreign Earned Income Exclusion ($130,000 in 2026) doesn't help retirees with pension and Social Security income since those aren't 'earned' income. The Foreign Tax Credit (Form 1116) prevents double tax if your destination country also taxes you. Social Security is taxable in the US but often exempt or low-tax in destination countries under tax treaties.
Step 1 — Pick countries to compare. Top picks for US retirees by cost of living: Mexico, Thailand, Malaysia, Portugal, Costa Rica. The tool shows monthly cost ranges based on actual expat surveys.
Step 2 — Compare visa requirements. Each destination has a retirement or pensioner visa with income requirements. Portugal's D7 requires ~€870/month proof of income. Thailand's O-A wants 800,000 baht (~$22k) in a Thai bank. Mexico's Temporary Resident requires ~$3,000/month proof.
Step 3 — Review the US tax + healthcare callouts. The tool flags the tax-treaty status (does the country tax your Social Security?), Medicare implications (Medicare doesn't pay abroad), and the typical local private health insurance cost for an American 65+.
Pick two countries and the tool returns side-by-side budget breakdowns, residency visa requirements, healthcare access, and the US tax treatment of foreign pension or Social Security income.
Compare countries →Yes for most countries. The SSA pays SS benefits to US citizens living almost anywhere — the only excluded countries are Cuba, North Korea, and a few others with no treaty. SSA can direct-deposit to a foreign bank account or your US account. Your benefit amount is unchanged; the tax treatment varies by country (some tax it under their treaty, some don't).
No, Medicare does NOT pay for healthcare outside the US (with very narrow exceptions for emergencies near the US border). If you retire abroad, you typically either (a) drop Medicare Part B to save the premium (knowing reinstatement has rules) or (b) keep paying it as insurance in case you visit the US. Most retirees buy local private insurance + use the destination's public healthcare system.
By embassy registration and SSA data: Mexico (largest US-retiree expat population, ~1.5M+), Canada, Germany (military veterans), Philippines, France, Costa Rica, Israel, Italy. Lifestyle hubs: San Miguel de Allende (Mexico), Chapala/Ajijic (Mexico), Cuenca (Ecuador), Boquete (Panama), Tavira/Lagos (Portugal), Penang (Malaysia), Chiang Mai (Thailand).
Yes. US citizens file US taxes on worldwide income regardless of residency. The Foreign Tax Credit (Form 1116) prevents double-tax on income the destination country also taxes. Foreign accounts >$10k trigger FBAR (FinCEN 114) reporting; foreign assets >$200k trigger FATCA (Form 8938). Pension income (401k, IRA distributions) is generally only taxed by the US. Social Security is taxed by the US, and may or may not be taxed locally depending on treaty.