2025 Boomer Exodus: Smart Alternatives to U.S. Retirement

As a historic number of Americans prepare to retire in the next few years, many will be faced with the decision of where to spend their “golden years.” Some will elect to stay in familiar surroundings, close to established routines and loved ones, while others will be inspired to act on their dreams of relocation. Of these people, some will have already chosen a particular destination because they have researched that place and are merely waiting for the right moment to make the move. For those contemplating a move, the concept is not always clearly defined in terms of a specific location like a state, country, or continent. Often, it takes a life-changing event or situation like the approach of retirement to spur people into action and begin studying their alternatives for the future.

As a young Baby Boomer myself, I read many articles, studied statistics, and watched a voluminous number of videos in order to answer the question of where I could see myself having a better life. During my research, I inadvertently uncovered some of the social and economic realities confronting a large percentage of the unprecedented wave of individuals turning 65 in the United States today. This surge of people at the doorstep of retirement is what is sometimes called the “Peak 65 Zone”, representing the years 2024 to 2027 – when the greatest-ever number of people reach the age of 65, the conventional age of retirement. This modern demographic phenomenon is unfolding during a unique time when retirees are less financially prepared for their golden years than their elder Baby Boomer siblings and cousins were.

Young Baby Boomers Face High Costs in the U.S.A.

Many of today’s young Baby Boomers – those under the age of 65 – have limited resources with which to fund a generous retirement, according to AARP, with over half of them having to rely heavily on social security benefits. This at a time when the cost of living has increased considerably, not the least for those considering moving to Florida, a traditionally popular retirement destination and an American microcosm.

During the past five years alone, home prices in the Sunshine State have risen by as much as 50% and the typical home-owners’ insurance premium there has also risen substantially due to the increased risk of hurricanes (and tornadoes). Shopping for a condominium in Florida? Today there is an elevated risk of future “assessments” – special condominium levies foisted on condominium owners to pay for structural upgrades, particularly on the many buildings built more than 40 years ago.

If that wasn’t enough, property taxes have also gone up sharply across Florida – by as much as 58% in recent years. The same is true for the U.S. as a whole as property taxes on single family homes across the country increased an average of 7% in 2023 in response to rising costs incurred by local governments, according to Attom Data Services. In a number of cities, property taxes increased by more than 15% during the year – with notable increases in Charlotte (31.5%), Indianapolis (18.8%), Denver (15.7%), and Atlanta (15.2%).

Medical costs prohibitive in the U.S.A.

Besides the basic expenses of housing, transportation, and food, older Americans are typically concerned about the cost of health care and insurance. In the U.S., the average cost of health-care per household headed by someone over 65 is $7,500 per year ($625 per month), according to the U.S. Bureau of Labor Statistics. This cost is accounted for by Medicare and its various types of coverage including medical, hospital, prescription, and supplemental; and out-of-pocket costs which in America are exceedingly high for even the shortest and simplest procedures.

The United States is the outlier in the developed world for its lack of accessible (affordable) health care. In a study conducted by the Commonwealth Fund on national health systems, the U.S. ranked last of 11 high-income nations for equitably accessible, affordable, high-quality healthcare. It is the only one of the 11 countries researched that does not provide universal health insurance coverage.

Remarkably, high income persons in the United States were more likely to report financial barriers (to receive a procedure or surgery) than the low-income persons in nearly all of the other 10 countries in the study. “Go where you are treated best” is what Andrew Henderson, author of Nomad Capitalist says. It is striking that many U.S. citizens are not treated well – even some of its high-income earners and especially its low-income individuals who find themselves needing medical intervention for a life-threatening or life-altering illness or disease.

The Retire Guide reports that 17% of American adults with medical debt are forced to declare bankruptcy and often to sell their homes. After all of the taxes paid on income and many types of expenses, it is unfathomable that some of this government revenue is not used to create a fair and equitable healthcare system. In the end, everyone pays for the burden placed on the system by the many uninsured or underinsured recipients of critical medical care.

The Hidden Costs of Suburban Retirement

Much of America’s built-environment is composed of decentralized, low-density residential neighborhoods that require residents to drive everywhere in order to run errands, shop, and keep appointments. If you live in a low-density place, you are likely to own and operate a car which is, at an average cost of $12,000 per year, many times costlier than a car-free lifestyle, both in terms of money and health.

Low-density municipalities receive less property tax revenue per area of land than high-density municipalities, which means that many of America’s 8900 local governments are constrained in providing services unless they continue to raise property taxes. It doesn’t help that a lot of America’s infrastructure was built long ago and approaching the end of its useful life. It is no wonder that property taxes on single-family homes in the U.S. rose an average of 7% in 2023 and much higher in a number of cities, as mentioned earlier.

Strip-malls, cul-de-sacs, big-box stores, and large-lot single family zoning do not pay the bills of municipal governments like the dense layouts of Philadelphia and New York do. After all, in the same footprint as a large shopping center and its parking area take up, a series of mid-rise apartment and commercial buildings with space for parks can generate more than three times the property tax revenue as the shopping center. And with less environmental degradation and more walkability.

Walkable neighborhoods

Walkability is a term that has gained traction in the real estate industry during the early 21st century as more and more buyers are insisting on this feature on the houses they buy. Walkability means the ability to walk to several meaningful points of interest within 15 minutes – such as a park, supermarket, library, coffee shop, civic center, and shops. An expanded definition of walkability includes access to high quality public transportation, which greatly expands the range of potential trips without the need for a car.

In the U.S., apart from the largest cities, public transportation is often not available or so infrequent or poorly routed as to be impractical. Moreover, networks of properly separated bike lanes are not a common feature in U.S. cities, unlike several of the other 10 high-income countries cited in the healthcare section earlier. It is ironic that we are touching on healthcare and bike lanes in the same sentence since regular bike riding results in significantly healthier communities.

Bicycles are the most basic type of transportation ever invented (the horse is an animal, so it doesn’t count here) and are quite useful for getting around for trips of less than five miles. As reported by multiple publications, E-bike sales have been increasing in the U.S. and around the world since 2015 when a new type of battery was introduced, making this transport mode more practical over hilly terrain and on windy days.

United States and Europe Compared With the World

Does the idea of living somewhere you don’t have to drive everywhere appeal to you? A majority of towns and cities across the European continent were largely built up before the advent of the mass production of cars and were constructed with narrower, less linear roadways than the more modern, autocentric United States. Europeans, like people all around the world, love their cars but are not as dependent on them as Americans because they generally have alternatives to driving such as public or active transportation (walking and cycling).

People of retirement age can benefit in so many ways from a move to a more walkable and higher quality place in Europe, where there are dozens of potential towns and cities across 44 countries to live. For the same amount of money spent in the U.S., you will get more house, equal or better quality food, more things to do within a 15-minute walk of your home, excellent medical services at a fraction of the cost, and a safer, more relaxed culture.

In my seaside town in Albania, my monthly living expenses are less than $1,000 and I can walk to the edge of town in 20 minutes. Before I moved here, I researched many places and cross-referenced the results with the features of life I valued, namely sunshine, affordability, and ease of entry for Americans.

Albania is exceptional in that it grants 365-day visa-free travel for U.S. citizens, has year-round good weather and is eminently affordable. Then there are the bonuses of a welcoming people, good food, fantastic national parks, and location in one of the world’s oldest continuously inhabited regions (there are plenty of ancient ruins not far away). Like many parts of tropical Asia, southern Europe offers abundant sunshine and affordability, especially on the Balkan Peninsula (Albania is on the southwestern portion of the peninsula, on the northwest border of Greece). Besides Asia and Europe, I also considered parts of South America where many American expats have relocated over the years. I’ve read extensively about Ecuador, Colombia, Peru, and Brazil and traveled to Argentina, Chile, and Uruguay, but in the end decided on focusing my search on Europe.

For me, a travel enthusiast with many unchecked boxes of countries to visit in this part of the world, Europe made the most sense since it is the most central part of the world, taking into account that 90% of the world’s population lives in the northern hemisphere between 30 and 60 degrees of latitude. In fact, the Mediterranean, the world’s seventh largest sea, means “middle-earth,” referring to its location surrounded by three continents – Africa, Asia, and Europe.

Live Where You are Treated Best

Cities popular with expats in Mexico and Latin America have pleasant climates but only because most of them are at high altitudes, which are not fun places to live if you have any respiratory issues. Furthermore, if you enjoy travel, living anywhere south of the United States means being even more isolated in the world than the eastern U.S.A., which is closer to Europe than the rest of America but still far away. But not as far as Australia, Asia, and Southern Africa, some of the most remote places on earth. Still, modern technology and transportation have made even the most far-flung locations more accessible and practical than ever before. With an open mind about geography, retirees can choose between any number of idyllic places to live in all corners of the world.

From my own perspective, it was important to live somewhere in Europe and in a country with the easiest visa policy which, for my tightly-timed relocation, turned out to preclude all 29 Schengen Zone countries from consideration, since only 90-day, stamp-on-entry, visas are issued by those nations. After 90 days in the zone, one must leave for 90 days (no entry to any of the 29 countries), before reentering. With all the countries in the world, each with their own ever-changing visa policies, many people understandably rely on established publication outlets for guidance. Researching the actual requirements for visa applications can take time and each critical piece of information needs to be cross-referenced depending on its source, as the following cautionary tale demonstrates:

In a recent article by the popular magazine U.S. News and World Report entitled “The Cheapest Places to Retire Abroad on $1k Per Month”, the reader was led to believe that the seven countries listed in the article fit that description. However, when studying the residency visa requirements for retirees, it becomes apparent that several of the countries cited as affordable do not, in fact, have visas for retirees making $1,000 or less per month, including Malaysia, Mexico, Philippines, Thailand, and Vietnam. Malaysia, Mexico and Thailand have high minimum income requirements for retirees, and the Philippines requires a $10,000 bank deposit. Vietnam has no retirement visa. The only two countries that align with the article title and key takeaways are Panama and Portugal.

Those on a limited, fixed income wishing to relocate to a truly welcoming place should concentrate their search on budget friendly countries with relatively easy residency visa requirements, such as Albania, Argentina, Bulgaria, Cambodia, Colombia, Costa Rica, Panama, Peru, Portugal, Tanzania, and others. Visa policies often change, so do your own research before committing to a move. Also, there are the various U.S. territories to consider, as they don’t require visas for Americans to retire yet are far enough away from the U.S. mainland to look and feel foreign, if that’s what you’re looking for.Besides the overseas territories of the United States, at the time of this writing in November 2024, Albania is the easiest place for Americans to move on short notice since there are no visa requirements for the first 365 days. That means that U.S. citizens, upon entering the country, are granted a visa-free stay of a whole year (they are not granted visas, just visa-free stays, and they can travel back and forth, in and out of the country freely during the year). It’s a great opportunity to live in Europe, in a unique, relatively unknown country, for a long enough period of time to decide to stay or apply for a residency visa in one of the other numerous nearby nations.