Retirement Retired Life

11 Expenses That Almost Totally Disappear When You Retire Abroad

Moving abroad for your retirement could save you money

celebrating wedding anniversary on sailboat
Updated Oct. 1, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Retiring is your chance to build a life where you can travel when you want. But have you ever considered retiring abroad entirely?

You can cut plenty of costs from your monthly budget when you retire in the U.S., like work clothes and eating lunch at your office. In another country, there could be some added expenses, especially in your first year of retirement, but you might also be able to cut some costs. 

The more you research, the more money you can avoid throwing away. If you're thinking about retiring abroad, factor in these cost cuts when you're putting together your budget.

If you’re over 50, take advantage of massive travel discounts and trip-planning resources

Over 50 and love traveling? Join AARP today — because if you’re not a member, you could be missing out on huge travel perks. When you start your membership today, you can get discounts on hotels and resorts, airfare, cruises, car rentals, and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

An AARP membership not only unlocks discounts that could save you hundreds on your next trip, but you’ll also have access to deals on vacation packages, guided tours, and exclusive content to help plan your next getaway.

Important: Start your membership by creating an account here and filling in all of the information (do not skip this step!). Doing so will allow you to take up to 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Commuting costs

sodawhiskey/Adobe businesswoman drinking hot coffee

Working in an office means you've probably had to include commuting costs like gas or public transportation into your budget, which you can likely drop now that you're retired.

You also may want to consider retiring to an international city that isn't too spread out, allowing you to drop the need for a car in favor of more affordable options like walking or public transportation.

Food

Siphosethu Fanti/peopleimages.com/Adobe sharing a toast for celebration

You might be surprised at how your food costs decline if you move abroad instead of retiring in the U.S.

Some towns rely more on local foods instead of transporting food a good distance, which means your grocery shopping may not include transportation costs.

You also may live in an area with a lower cost of living, dropping your expenses for groceries or dining out locally compared to the U.S.

Currency exchange fees

Carlos David/Adobe holding dollar bills

You may be excited to travel to a new place until you take your American dollars to get exchanged for local currency and have to pay addition fees.

But living abroad means you can easily access local currency, especially from a local bank if you open an account in the country you move to. That extra cash can add up any time you use the local currency without a need to exchange it over from U.S. dollars first.

Earn a $250 travel bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Bank of America® Travel Rewards credit card has no annual fee and you can earn 25,000 bonus points after spending $1,000 in purchases in the first 90 days of account opening.

You can earn additional points just by using this card for your everyday purchases — unlimited 1.5 points per $1 spent on all purchases. The 25,000 bonus points can be redeemed for a $250 statement credit toward travel or dining purchases.

If you want to travel and dine out more, the Travel Rewards card can help you get where you want to go.

The best part? There's no annual fee.

Click here to apply now.

Taxes

Studio Romantic/Adobe bank account balance notification

Taxes can be an important factor in your decision-making process as some countries may be more tax-friendly than others for retirees. You may want to consider countries that are tax-friendly to retirees when looking into retiring abroad.

Regardless of where you decide to retire, it's also good to remember that you won't be paying payroll taxes anymore so that's one expense you can drop from your budget.

Work clothes

Moon Safari/Adobe businessman working on laptop

It doesn't matter if you retire in the U.S. or abroad because you likely won't need to spend money on work clothes anymore.

However, it may be a good idea to assess your closet before you decide to ditch all the business attire and move abroad.

You may still need certain pieces depending on the local attire, and it's better to shop your closet rather than tossing everything and needing to start over with a new wardrobe.

Mortgage

goodluz/Adobe financial adviser for investment

One reason you might want to move abroad is because your dollar can go further living in a different country with a lower cost of living.

One of those places where you can save money is with housing, so think about selling your home here and using that money for an all-cash purchase of a home abroad. Buying a home with cash can help you avoid paying mortgage fees and interest.

Heating and cooling

LIGHTFIELD STUDIOS/Adobe sitting at table with paperwork

You may be readyto ditch all that snow in a wintery state for a warmer climate abroad when you retire, or perhaps you want something a little cooler than a southern state in summer.

Living somewhere else may not just make you feel better but can help your wallet too by cutting back on utility costs. Factor in utility costs when you're developing an estimated budget for retiring abroad and see how much you may be able to save.

Activity fees

koumaru/Adobe white haired man

You may be spending plenty of cash to enjoy indoor spaces in the winter or summer to get away from the outdoors.

Find a place where you can enjoy nature more with hiking trails or water sports like kayaking. Outdoor activites can be free and in a temperate climate, you'll be more than willing to enjoy them instead of paying to stay inside.

Health care

sebra/Adobe doctor and patient are discussing

Health care costs can be expensive in the U.S., especially if you haven't qualified for medicare yet.

Research some potential destinations. You may be surprised at how low health care costs are compared to the U.S. or if you qualify for low-cost or free healthcare coverage where you live.

Unlock exclusive entertainment deals and VIP perks (without a credit card)

Ready to take your entertainment and travels to the next level? Experience the finer things in life with the SELECT card.

No, it's not a credit card, it’s an exclusive membership — and your passport to a world of elite benefits and unforgettable moments.

Imagine sipping complimentary cocktails in downtown Manhattan at KYU NYC or saving 20% on the best sushi in Hollywood Hills at Yamashiro.

Like to shop? Members receive VIP discounts like 15% off at Brooks Brothers, and up to 60% off at Tumi.

Enjoy special offers at luxury hotels like the Four Seasons and Omni Select. For example, you get 15% off at Hyatt Hotels worldwide.

But it’s not just about the hundreds (or thousands) you could save. There are so many features that make you feel like a VIP every day. Like SELECT’s white-glove concierge that assists with bookings, recommendations, or anything you need. And priority access to reservations to some of the year’s hottest events (many not open to the public).

Apply for the SELECT card today

Family expenses

LIGHTFIELD STUDIOS/Adobe man selling his house

Living abroad may give you the chance to downsize, getting rid of extra space you had when your kids still lived at home.

Think about how you'll be empty nesters abroad and where you can save some costs when you're living without your adult children.

However, you also may want to factor in the extra costs you might incur from traveling back to see family when you're not living near them.

Incentives

Alessandro Biascioli/Adobe lifestyle and travel transportation concept

Some places welcome retirees and want you to move there to contribute to the economy. Check out countries that may give you a discount on a retiree visa instead of a typical visa.

You also may be able to save money on goods you bring into the country compared to others who have to pay taxes on their goods. You may also get to keep more money in your bank account by receiving financial breaks on utilities, transportation, or cultural events.

Bottom line

Proxima Studio/Adobe couple paying bills together

Before you retire abroad, you'll also want to investigate the different rules about moving to another country. 

Some countries may be more willing to welcome retirees than others, or you may have to pay additional taxes or fees that could eat into your savings and change your timeline if you want to retire early.

It's also a good idea to create an estimated retirement budget so you know how much it will cost to live somewhere else while you're retired. 

Easy-to-Earn Unlimited Rewards

Benefits

Card Details

  • $0 annual fee
  • Simple, flat-rate rewards
  • Flexible redemption options
  • Up to 75% preferred Rewards bonus potential
  • Apply Now
  • Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don't expire as long as your account remains open.
  • 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.
  • Use your card to book your trip how and where you want - you're not limited to specific websites with blackout dates or restrictions.
  • Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout.
  • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.74% - 28.74% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
  • If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means instead of earning an unlimited 1.5 points for every $1, you could earn 1.87-2.62 points for every $1 you spend on purchases.
  • Contactless Cards - The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Bank of <span class='whitespace-nowrap'>America<sup>®</sup></span> Travel Rewards credit card
4.1
info
Apply Now

on Bank of America’s secure website

Read Card Review

Intro Offer

Earn 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases

Annual Fee

$0

+

Why we like it