What Kinds of Countries Do People Commonly Consider for Retiring Abroad?

By The Penny Plan Editorial Team Published July 13, 2026 6 min read

Somewhere between browsing retirement calculators and scrolling photos of a beach town, the idea of retiring somewhere else entirely starts to feel less like fantasy and more like a real question worth researching. The same handful of regions tend to come up again and again in those conversations, and it’s worth understanding why.

In a nutshell

Certain parts of Latin America, Southern Europe, and Southeast Asia are frequently mentioned in retiring-abroad discussions, generally because of some combination of a lower overall cost of living, established residency pathways for retirees, a sizable existing community of other transplants, and reasonably accessible healthcare systems. No single country fits everyone, and the right factors to weigh depend heavily on individual health needs, family ties, and how connected someone wants to stay to the country they’re leaving.

Common factors that draw people to certain locations

Why healthcare research doesn’t stop at picking a country

Healthcare is often the factor that requires the most homework, because coverage that exists at home doesn’t automatically transfer abroad. It’s worth understanding how retiring abroad generally affects Medicare coverage, since Medicare’s coverage rules are notably different once someone is living outside the country for an extended period, and this interacts with the general relationship between Medicare eligibility and retirement age in ways that are easy to overlook when the planning starts with a location rather than a coverage plan.

Why “cheaper” isn’t automatically true everywhere

Cost of living is one of the most repeated reasons people give for considering a move abroad, but it’s worth being cautious about treating any country as a guaranteed discount. Whether retiring abroad is actually cheaper than staying in the US depends heavily on lifestyle choices, healthcare needs, and how a specific region’s costs compare to a specific US location, not on broad regional reputation alone. Popular retirement destinations can also see costs shift over time as more foreign retirees move in, since demand affects local housing prices the same way it does anywhere else.

The takeaway

The countries that come up most often in retiring-abroad conversations tend to share a mix of affordability, accessible residency options, and existing communities of other retirees, but “commonly considered” isn’t the same as “right for a particular situation.” Healthcare access, family proximity, and how income and savings translate locally all deserve individual research well before a specific country becomes a real plan rather than a daydream.