At 50 years old, Janet Blaser decided to make a big change in her life. She was tired of her uncertain career in California, so she packed her bags and moved to Mexico in 2006. Now, at 68, she is enjoying a comfortable retirement in San Antonio Tlayacapan. She lives in a two-bedroom, one-bathroom cottage and pays $460 a month in rent. She supports herself through Social Security, freelance work, and royalties from her book sales.
Living in Mexico has allowed Blaser to have a more affordable and fulfilling lifestyle. She is located within an hour of Guadalajara, which gives her access to medical care, an international airport, and major retailers like Costco and Home Depot. Everything she needs is within reach, making it the perfect place for her to enjoy her retirement.
Retiring in a tropical paradise might seem like a dream, but it is becoming a realistic option for many Americans, especially those with flexible work arrangements. Over 760,000 Americans receive Social Security benefits while living abroad. Blaser, who collects less than $1,000 per month in Social Security, supplements her income with freelance work and book royalties, earning an additional $400 to $500 each month.
In addition to her rent, Blaser’s monthly expenses include $12 for electricity, $30 for internet, $17 for a phone plan with free international calls, and groceries that cost between $300 and $320. Compared to the average rent in California, which is $2,555 per month, living in Mexico is 52% more affordable. This allows Blaser to maintain a comfortable lifestyle on her monthly income of around $1,500.
According to International Living, a couple can live modestly yet comfortably in Mexico on a budget of $1,500 to $2,000 per month. Medical costs are also significantly lower in Mexico, with doctor’s visits costing around $60. However, retiring abroad comes with its own set of considerations and risks.
Currency fluctuations can impact your purchasing power, and U.S. expats are still subject to U.S. tax laws. This means you may need to file federal taxes regardless of where you live. Additionally, Medicare does not cover healthcare expenses while living abroad, so you will need to obtain private health insurance or see if you qualify for the country’s public care system.
Retiring overseas can be a tempting option for those seeking a more affordable lifestyle, but it is crucial to consider the full financial picture before making the move. Planning ahead and understanding the potential challenges can help ensure a smooth transition to retirement in another country.