Wealth management
Retiring abroad—c’est possible?
Retiring overseas has its benefits but requires careful planning for taxes, insurance, and navigating foreign systems.
A beach town bungalow in Mexico, a wine country villa in Italy, a mountain chalet in France. Retiring abroad can look like a page torn from a glossy magazine—if money is no object. Money (and health) are usually in play though, which is why retiring abroad requires thoughtful planning.
Over the past two decades, the number of Americans retiring abroad has more than doubled, according to the Social Security Administration. Japan, Canada, Mexico, United Kingdom, and Germany are the top five destinations for retirees.1 (Social Security benefits can generally be sent wherever you move, with a handful of exceptions.2)
The driving forces behind these decisions are well known—lifestyle, lower cost of living, even improved health care. Just spin the globe, and nearly any place it stops will have significantly lower costs of living than the United States3 —think of Costa Rica, Mexico, Thailand, and Colombia, among many others.
Solving for health care overseas
Health care is one of the largest components of cost of living for retirees and also one of the top reasons that Americans retire elsewhere. Unlike Social Security, Medicare doesn’t travel well outside of the United States,4 so retirees abroad must consider an alternative. You need not be an investigative journalist to find better quality health care abroad than that currently offered in the United States. For measure, Statista ranks the U.S. health care system performance last (10th) compared to nine other high-income countries (just behind Germany). Australia, Netherlands, United Kingdom, New Zealand, and France fill out the top five.5
While it’s not hard to find better and cheaper health care outside of the United States, the challenge is navigating how to partake in a country’s health care system as an expat, or foreign resident. Time of residence is key. Take for example, France, ranked fifth among high-income countries for health care by Statista. Like many European countries, France has a universal health care system that covers the majority of procedures and costs. In France, expats can qualify for public health insurance if they have lived in country for at least three months and plan on remaining on a permanent basis.6
In Costa Rica, where the cost of living is low and a universal health care system is a major asset, American retirees can apply for full benefits, but it takes between one and two years to qualify.7
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Top five places Americans are retiring abroad, their rankings in health and healthcare systems worldwide and cost of living, and how they compare to the United States
#1 Japan
Monthly cost of living
$841
Health and health systems ranking
2
#2 Canada
Monthly cost of living
$1,038
Health and health systems ranking
32
#3 Mexico
Monthly cost of living
$698
Health and health systems ranking
71
#4 United Kingdom
Monthly cost of living
$1,096
Health and health systems ranking
34
#5 Germany
Monthly cost of living
$1,158
Health and health systems ranking
13
United States
Monthly cost of living
$1,174
Health and health systems ranking
69
Rankings are according to the Social Security Administration as measured by where Social Security benefits are paid outside of the United States,
Don’t forget taxes and life insurance
Those considering retiring outside of the United States should also consider some of the more subtle challenges of taxes and life insurance.
Citizenship, not residency, determines your federal taxing agency. The IRS requires tax residents to pay tax on their global income, regardless of the source.8 Americans retiring abroad are required to report their income from all sources anywhere in the world and the value of their combined financial assets held outside the United States.
Another consideration: estate or inheritance tax. While many countries have lower inheritance taxes than the United States, your estate may still be required to pay the difference if you’re a U.S. tax resident, your estate exceeds the $15 million estate-tax exclusion, and you haven’t relinquished your citizenship.9 Evan Potash, TIAA executive wealth management advisor, counsels meeting with an international tax advisor and estate planning attorney. Your TIAA wealth advisor can facilitate the connection.
“Inheritance taxes at death range from zero to 60%10 depending on the country,” notes Potash. “A large portion of a person’s net worth could potentially be given to the government where they are retired and not the intended beneficiary.”
It’s also worth checking the details of your life insurance policy. If you already have a policy through a domestic insurer and then move abroad, you’ll likely still be covered unless your policy has explicit travel exclusions.11 Otherwise, a safe bet is to buy international life insurance with a strong network in your new country of residence.
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1 Social Security Administration, Annual Statistical Supplement, 2025,
2 Social Security Administration, “Your Payments While You Are Outside the United States,”
3 World Population Review, “Cost of Living by Country 2025,”
4 California Health Advocates, "Medicare Eligibility If You Move Out of The United States,"
5 Statista, Health care system performance rankings of the United States compared to nine other high-income countries from 2021 to 2023,
6 International Citizens Insurance, European Health Insurance Options,
7 International Citizens Insurance, “Understanding the Costa Rican Healthcare System,”
8 Internal revenue service, “U.S. citizens and resident aliens abroad,”
9 Internal Revenue Service, “Estate Tax,”
10 PwC, “Quick Charts: Inheritance and gift tax rates,”
11 Tory Crowley and Julia Kagan, “International life insurance: Buying a policy abroad,” January 4, 2024, Policygenius,
The TIAA group of companies does not provide tax or legal advice. Tax and other laws are subject to change, either prospectively or retroactively. Individuals should consult with a qualified independent tax advisor and/or attorney for specific advice based on the individual’s personal circumstances.
The views expressed in this material may change in response to changing economic and market conditions. Past performance is not indicative of future returns.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances, which should be the basis of any investment decision. Hypothetical examples used are for illustrative purposes only and is not intended to predict or project investment results.